What Is Guaranteed Issue Life Insurance?
Coverage that can’t be turned down because of your health.
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Quick Answer
Guaranteed issue life insurance is a type of whole life policy that approves applicants based only on age — there are no health questions and no medical exam, so you generally cannot be declined for a pre-existing condition.
For more detail, see our explanation of simplified issue life insurance.
Guaranteed issue whole life insurance policies are generally available to individuals between the ages of 45 and 85 (exact age ranges vary by policy and carrier). Because the insurer takes on more risk by not asking about your health, guaranteed issue premiums are typically higher than simplified issue premiums for the same coverage amount, and coverage amounts tend to be smaller — often capped between $5,000 and $25,000.
Most guaranteed issue policies include a graded death benefit for an initial period (commonly the first two years). If the policyholder passes away from natural causes during that window, the beneficiary typically receives a return of premiums paid plus interest rather than the full face value; after the graded period, the full benefit applies. Death from an accident is usually covered in full from day one.
Who Guaranteed Issue Coverage Is Best For
Guaranteed issue tends to be a good fit for Californians who have serious or multiple health conditions, who have been declined for other coverage, or who would rather not answer health questions at all. It can also give peace of mind to older seniors who want certainty that an application won’t be turned down because of their medical history.
If your health is reasonably stable, though, compare it against simplified issue life insurance first. Many applicants qualify for simplified issue, which is often priced lower and frequently pays the full benefit from the first day. Our page on the graded death benefit explains the trade-off in more detail.
Sizing a Guaranteed Issue Policy for California Final Expenses
Because guaranteed issue premiums are typically higher per dollar of coverage, it helps to buy only what you need. Many California families spend roughly $8,000 to $15,000 on a traditional funeral with burial, while direct cremation often costs considerably less (see the average funeral cost in California). Matching your policy to your plans helps keep the premium manageable on a fixed income.
Guaranteed issue plans are among the no exam burial insurance options in California. A licensed agent can compare several carriers’ age limits, coverage caps, and graded-benefit terms so you can compare burial insurance quotes side by side.
This answer is part of our No Medical Exam Plans & How Qualifying Works section of our questions hub. Ready to see your real options? Call (877) 486-3215 now to speak with a licensed agent and get a free, no-obligation final expense insurance quote.
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