Guaranteed Issue

Guaranteed issue life insurance is a type of policy — typically whole life — that is issued without any medical underwriting. There are no health questions, no medical exam, and no review of medical records. Acceptance is guaranteed for applicants within the eligible age range (usually 50–80 or 50–85). Because the insurer assumes significant adverse selection risk (accepting all comers, including those in poor health), these policies come with a graded death benefit during the first two to three years: if the insured dies from natural causes in that window, beneficiaries typically receive a return of premiums paid plus interest rather than the full face amount. After the graded period, the full benefit is payable.