The Best Guaranteed Issue Life Insurance Companies for 2021

The Best Guaranteed Issue Life Insurance Companies

Looking for the top rated Guaranteed Issue Life Insurance Companies? Well you have landed on the right page. With so many options to choose from, it’s difficult to know which company to purchase from. We are here to help!

In this article we will review the top rated life companies selling guaranteed issue life insurance based on their rates, benefits offered, and there financial ratings. After reading this article, any doubts about which companies are the best should be cleared up.

RELATED: Top 10 Final Expense and Burial Insurance Companies

What is Guaranteed Issue Life Insurance?

Guaranteed issue life insurance is also referred to as guaranteed acceptance life insurance. Just as the their name implies, coverage is guaranteed. These policies are whole life policies that offer a tax-free death benefit to your beneficiaries. The life insurance companies accept all applicants regardless of their health status or background history.

Guaranteed issue life insurance caters to consumers who cannot qualify for life insurance coverage anywhere else. The premiums are guaranteed along with the death benefit.

Is Guaranteed Issue Life a Good Deal?

It’s easy to fall for the “no health questions” or “no exam life insurance” slogan, but it’s wise to be weary. Guaranteed issue life insurance is for individuals age 50-85(some companies 40-85) that have no other options when it comes to buying life insurance. These are usually last resort policies.

If you are healthy or even somewhat healthy, guaranteed issue life is not the right product for you. The maximum death benefit on most guaranteed issue life policies is $25,000 with a few as high as $40,000.

All guaranteed issue life has a graded death benefit. Graded death benefit means the benefit is not paid for 2 years if death is by an illness. Premiums plus interest is paid out if death by illness occurs during this time.  Accidental deaths pay full benefit from day 1.

Guaranteed Issue Life Advantages

• Guaranteed acceptance for consumers who can’t qualify elsewhere. Simpler to obtain and requires no exam.
• Approval process is usually instant.
• Great for final expense or burial insurance

Guaranteed Issue Life Disadvantages

• Guaranteed issue life is overpriced compared to more traditional life insurance.
• You don’t get a lot of coverage for your premium. If you live long enough, you will probably invest more into the policy than your beneficiaries get back.
• Limited benefit the first 2 years

Guaranteed Issue Life Insurance: What to Expect?

• Limited death benefit amounts
• Issue ages limited 40-85 year old
• Guaranteed approval, regardless of your health
• No health questions to answer
• No exam required
• Premium is guaranteed for life
• Builds cash value because it is a whole life policy
• Graded death benefits for 2 years (depending on the company)
• If death is by accident, full death benefit is paid to your heirs
• Tax-Free Death Benefit
• 30-day free look period just like a traditional policy

The Best Guaranteed Issue Life Insurance Companies 

We understand that there are more than the 4 life insurance companies that offer guaranteed issue life insurance. We chose these 4 companies because they have:

• The most competitive rates
• Above average pay out schedules
• Strong financial ratings

Let’s take a look:

AIG Guaranteed Issue Whole Life

AIG Life Insurance Company is one of the biggest insurance companies worldwide, doing business in over 130 countries with over 88 million policyholders. AIG boasts an “A” rating with A.M. Best and has been in business since 1919.

NOTE: AIG Guaranteed Issue product is sold directly through AIG or select brokers. To purchase their product you have to either call AIG directly or find a broker who offers their policies.

• Issue ages 50–85
• Death benefits from $5,000 to $25,000
• Chronic illness rider is included at no extra cost. If you have an illness that is a qualifying chronic illness, you can access up to 50% of the death benefit early
• Terminal illness rider included also. If your life expectancy is 24 months or less, you can access 50% of your death benefit early
• Graded death benefit for the first two years. If an applicant dies because of illness, AIG will pay the premium paid plus 10% interest. Accidental death pays full benefit.

Sample Rates for AIG Guaranteed Issue Life Insurance

Gerber Guaranteed Issue Life Insurance

Gerber Life Insurance has been around since 1927 and is best known for its children whole life insurance policies. Gerber Life has over $45 billion of life insurance in-force spread out over 3.5 million policies. They have an “A” rating with A.M Best.

• To apply you must be a U.S. citizen or permanent resident
• Issue ages are from 50–80
• Death Benefits range from $5,000 to $25,000
• Graded death benefit for the first two years. If you die for any reason in the first 2 years other than an accident, your beneficiaries will be paid the premium plus 10% interest

Sample Rates for Gerber Life Guaranteed Issue Life Insurance

Vantis Life Guaranteed Issue Life Insurance

Vantis Life Insurance Company is probably a company you haven’t heard a whole lot about. They have been around since 1942 and based out of Windsor, CT. The Penn Mutual Life Insurance Company bought Vantis Life in 2016. Penn Mutual has been conducting business since 1847 and have the highest rating of “A+” with A.M. Best, while Vantis has “A-“.

• Available in all states except New York
• Issue ages 50–80
• Face amount options: $5,000, $10,000, $15,000, or $20,000
• Graded death benefit for the first two years. If an applicant dies for any reason other than an accident, Vantis will pay the premium paid (with no added interest)

Sample Rates for Vantis Life Guaranteed Issue Life Insurance

AARP Guaranteed Acceptance Life Insurance

AARP Life Insurance is written through New York Life Insurance Company to their members and spouses. They have had a unique arrangement with New York Life for over 20 years. New York Life is rated “A++” with A.M. Best, which is the highest offered.

• Issue Ages are between 50-80 with spousal coverage from 45-80
• Death Benefits are as low as $2,500 to $25,000
• There is a 2 year waiting period for death by illness. Accidental death pays full benefit

Sample Rates of AARP Guaranteed Acceptance Life Insurance

How to Choose the Best Guaranteed Issue Life Insurance Company

1. Make sure to compare rates from multiple companies to ensure you get the best rate possible. Since most policies are designed similar, premium will be major difference.
2. Always choose a strong financial life insurance company. You want them to be able to pay claims 20 years down the road when they are needed the most
3. Make sure you fully understand how the graded death benefit works on all these types of policies
4. Always work with an experienced life insurance broker who will have access to all the top life insurance companies.

Final Thoughts

Guaranteed issue life insurance policies are considered a last-ditch resort when comes to buying life insurance. These policies are great fit for consumers with major health problems or a not so clean background. Everyone is approved in about 24 hours or less.

With that said, guaranteed issue life insurance will have the most expensive premiums compared to the traditional life insurance products. The way the death benefit is paid to your beneficiaries can be a little complicated also, so make sure you work with an experienced agent that can walk you through the details. If you would like some quotes or have any questions, please don’t hesitate to leave a comment or give us a call.

Frequently Asked Questions