What is "guaranteed issue" life insurance?

Guaranteed issue life insurance refers to a type of policy that is available to individuals regardless of their health status. This means that applicants cannot be denied coverage based on health conditions or medical history. The primary aim of guaranteed issue policies is to provide access to life insurance for those who may have difficulty obtaining traditional coverage due to pre-existing health issues or other factors that typically influence underwriting decisions.

This type of policy often comes with certain limitations, such as higher premiums and lower coverage amounts, reflecting the increased risk taken on by the insurer. However, the fundamental characteristic that distinguishes guaranteed issue life insurance is its inclusivity concerning health status—allowing virtually anyone who applies to secure life insurance coverage without going through a medical underwriting process.

In contrast, other types of policies may require medical underwriting, limit coverage based on health conditions, or be temporary in nature. The defining trait of guaranteed issue policies directly addresses the needs of those who might face barriers in accessing life insurance due to their health.