What Is Guaranteed Acceptance Life Insurance?
Key Takeaways
- People over 50 years old can qualify for guaranteed acceptance life insurance (also called guaranteed issue) without a medical exam.
- Guaranteed issue life insurance coverage lasts as long as you keep paying your premiums.
- You may have to wait a couple of years for your benefits to kick in fully.
- Guaranteed acceptance is a good type of coverage for people with health problems who might not qualify for other life insurance plans.
Guaranteed acceptance life insurance, also called guaranteed issue life insurance, does not require a medical exam and can last the rest of your lifetime. Eligibility restrictions vary by state, but these policies are typically available to new enrollees between the ages of 50 and 85. People with pre-existing health conditions, who might have trouble qualifying for other types of life insurance, often choose this kind of coverage.
Life insurance provides a benefit that can help your family through a difficult time. Depending on your age, health, and financial situation, a guaranteed acceptance policy could be the right choice to protect your family from unexpected costs.
What Is Guaranteed Acceptance Life Insurance?
Guaranteed acceptance life insurance provides coverage for older adults, including people living with medical conditions. When you sign up, you don’t have to undergo a medical exam or answer health questions. The coverage lasts as long as you continue to pay your premiums, and the death benefit can be used flexibly to pay a variety of final expenses, including funeral costs and medical bills.
That makes guaranteed acceptance life insurance a particularly appealing choice for someone who might be denied traditional life insurance, including people who have chronic illnesses, receive dialysis, or need an organ transplant.
While guaranteed issue life insurance can be very helpful to your loved ones, there are a few drawbacks:
- These policies generally offer a lower death benefit than other types of life insurance. The average guaranteed issue life insurance policy has a death benefit of $20,000, while the average death benefit for all forms of life insurance policy in the U.S.was around $206,000 as of 2023.
- There’s a limited benefit period for the first two to three years after enrolling. If the insured person doesn’t live through this period, beneficiaries typically receive a reduced death benefit.
Secure your family’s future with Guaranteed Acceptance Life Insurance.
Contact GoHealth to find coverage that fits your needs.
Guaranteed Acceptance vs. Other Types of Life Insurance for Seniors
| Permanent Life Insurance Type | Cash Value Growth | Medical Exam Generally Needed? | Living Benefits? |
| Guaranteed Issue Life Insurance | Yes | No | Not always |
| Term Life Insurance | No | Yes | No |
| Whole Life Insurance | Yes | Yes | Yes |
| Universal Life Insurance | Yes | Yes | Yes |
| Simplified Issue Life Insurance | Yes | No | Not always |
Guaranteed acceptance life insurance isn’t the only option out there for older adults. Other choices include term life, whole life, universal life, and simplified issue life policies. You should explore what’s available and enroll in the coverage that’s right for your health, budget, and needs.
Term Life Insurance
With term life insurance, you buy coverage for a specific length of time, typically ranging from five to 30 years. You can choose varying levels of coverage based on your needs. However, if you outlive your term and don’t enroll in a new policy, your family won’t get any death benefits.
When to consider term life insurance over guaranteed issue life insurance: If you’re in good health but only require coverage for a specific amount of time, such as until the end of your mortgage or until your children are grown.
Whole Life Insurance
Unlike a term life policy, whole life insurance is permanent, covering you for as long as you pay your premiums. Whole life insurance is generally among your more expensive options, but in most cases the premiums always stay the same after you enroll. One advantage is that this type of policy builds cash value, which you may be able to draw from while you’re still alive.
Guaranteed issue and final expense policies are kinds of whole life insurance that charge lower premiums and provide a more modest death benefit.
When to consider whole life insurance over guaranteed issue life insurance: If you’re still in good health and can lock in a lower premium, or your family will need a more generous death benefit.
Universal Life Insurance
Universal life insurance is also a permanent life insurance, but the main difference from whole life is the flexibility to adjust your premium payments and death benefits without taking out a new policy. For example, if you lose your job and can’t afford your premium, you may be able to temporarily lower your costs by reducing the death benefit. You can also borrow from the policy’s cash value.
When to consider universal life insurance over guaranteed issue life insurance: If you’re in good health and plan on retiring or anticipate a change in income over the next few years.
Simplified Issue Life Insurance
Simplified issue life insurance is similar to guaranteed issue insurance because it doesn’t require a medical exam. However, the enrollment process does require you to answer health questions. Insurance carriers can approve or deny your application based on your answers. Like guaranteed issue, simplified issue has lower death benefits compared to other policy types.
When to consider simplified issue life insurance over guaranteed issue life insurance: If you prefer to skip a medical exam but don’t have serious medical conditions that could disqualify you.
Is Guaranteed Acceptance Life Insurance Right for You?
Overall, guaranteed acceptance life insurance can be a good idea for older adults who:
- Are living with health conditions
- Want life insurance fast
- Want to assist family members with their final expenses
- Have been denied for other forms of life insurance
The reason guaranteed issue life insurance is so helpful for certain groups is that it’s easy to qualify a policy. You can’t be denied enrollment because of pre-existing health conditions, and there’s no need to undergo a medical exam.
If you’re still deciding between different kinds of life insurance, make sure to consider your options carefully. Consider reaching out to a licensed insurance agent or broker for help. They can walk you through the available plans to find the one with the right combination of benefits for you.
Sources
- Guaranteed Issue Life Insurance: Pros and Cons. Forbes Advisor.
- Average face amount of individual life insurance policies purchased in the United States from 1997 to 2023. Statista.
Is Guaranteed Life Insurance Worth It? Investopedia.