Should I purchase guaranteed issue life insurance?


Guaranteed issue life insurance policies are not the only option for older individuals.

If you spend any time watching daytime television, you may have seen commercials about guaranteed issue life insurance. In them, a not-so-famous actor tells you that anyone can qualify for such a policy even if they are in poor health. Applicants don’t have to deal with the hassle of a medical exam or answering those pesky health-related questions. This sounds like a very simple way to obtain a life insurance policy, but is it a good deal?

Life insurance is based on risk. Those who are less likely to die prematurely are better candidates for a less-expensive life insurance policy. A guaranteed issue life insurance policy will cover anyone, including the elderly and those who are severely ill. As a result of providing a service for such a high-risk population, the premiums on these policies are more expensive. 

Despite their high costs, the face value of guaranteed issue policies is quite low. Their death benefits usually range between $5,000 and $50,000. Most of these policies barely cover the cost of a funeral. This type of life insurance policy is not a good option for anyone who is trying to provide financial security for surviving family members. 

Guaranteed issue life insurance should really be your last option. Don’t assume that a traditional carrier will not issue you a policy just because you are older and may not be in perfect health. It never hurts to shop around and do a bit of research. For a convenient life insurance quote, visit to find out which life insurance policies might work best for you.

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