Should I purchase guaranteed issue life insurance?

  • Sep-18-2013
  • Richard Reich

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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