Uninsurable? Guaranteed Issue Life Insurance may be for You

For people that have been diagnosed with a terminal illness or are in poor health, the idea of not having life insurance when needing it can be unsettling. For others who have a chemical dependency or have had one in the past, guaranteed issue life insurance (GI life) ignores the health risk of the dependence and provides the death benefit to their beneficiaries after the two-year waiting period. With other types of life insurance, the health risks the individuals face would be an automatic decline for coverage. Guaranteed issue life insurance may be the only life insurance available to these individuals. What is a guaranteed issue life insurance?

  • GI Life is a type of permanent life insurance for people between the ages of fifty and eighty.
  • Guarantees policy approval and insurability regardless of one’s health or previous declines for life insurance.  
  • Life insurance with no medical exam or medical history questionnaire required for approval. 

Guaranteed issue is popular among families wanting to cover burial expenses for a family member such as a parent or another member who is permanently disabled. While available to almost anyone, guaranteed issue life insurance can’t be purchased by or for someone in a nursing home, assisted living facility, or already receiving hospice care. Additionally, an individual diagnosed with dementia, Alzheimer’s, or a similar impairment will not be allowed to apply. These conditions are the only health-related questions on the insurance application. Since guaranteed issue life insurance requires permission when insuring another individual, consent must be given as an individual directly and not through a Power of Attorney document.

To save the insurance company from fraud, the death benefit on a guaranteed issue policy will not pay if the individual dies before the waiting period. Instead, the company refunds all of the money spent on the policy plus interest to beneficiaries. The waiting period is designed to keep the coverage affordable for the company and the insured.  

For people that have been diagnosed with a terminal illness, are in poor health or have had a chemical dependency and been denied life insurance, the idea of not having insurance can be unsettling.

Lastly, an individual is only allowed to have one guaranteed issue life insurance policy, regardless of the insurance company. The insurance company will review your existing life insurance policies to prevent fraud and over-insurance before issuing the GI life policy.

If you have questions about GI Life Insurance or if you’ve been declined and have a need for life insurance, contact our office to find out more.

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