Guaranteed Issue Life Insurance Companies

Guaranteed issue life insurance is a type of policy in which the insurance company guarantees coverage to the policyholder, regardless of their health or medical history. This type of policy is ideal for those who may have a pre-existing condition or have been turned down for coverage in the past. In this article, we will discuss the top guaranteed issue life insurance companies, how they work, the pros and cons, and frequently asked questions.

Top 5 Guaranteed Issue Life Insurance Companies

When choosing a guaranteed issue life insurance company, it is important to look at the company’s financial stability, customer ratings, and policy features. Here are the top 5 companies:

AIG

AIG is a global insurance company that offers guaranteed issue life insurance policies with coverage up to $25,000. Their policies do not require a medical exam or health questions, making it ideal for those with pre-existing conditions. AIG has an A financial rating and a customer rating of 4.5/5.

Pros:

• No medical exam required
• Up to $25,000 coverage
• Guaranteed acceptance

Cons:

• Higher premiums compared to other companies
• Maximum coverage of $25,000

Gerber Life

Gerber Life is a subsidiary of the Gerber baby food company that offers guaranteed issue life insurance policies with coverage up to $25,000. Their policies also include child and grandchild coverage options. Gerber Life has an A financial rating and a customer rating of 4/5.

Pros:

• No medical exam required
• Up to $25,000 coverage
• Child and grandchild coverage options

Cons:

• Maximum coverage of $25,000
• Higher premiums compared to other companies

MetLife

MetLife is one of the largest insurance companies in the world that offers guaranteed issue life insurance policies with coverage up to $50,000. Their policies also include an accelerated death benefit option. MetLife has an A+ financial rating and a customer rating of 4/5.

Pros:

• No medical exam required
• Up to $50,000 coverage
• Accelerated death benefit option

Cons:

• Higher premiums compared to other companies
• Maximum coverage of $50,000

New York Life

New York Life is the largest mutual life insurance company in the United States that offers guaranteed issue life insurance policies with coverage up to $50,000. Their policies also include an accelerated death benefit and accidental death benefit options. New York Life has an A++ financial rating and a customer rating of 4.5/5.

Pros:

• No medical exam required
• Up to $50,000 coverage
• Accelerated death benefit and accidental death benefit options

Cons:

• Higher premiums compared to other companies
• Maximum coverage of $50,000

Transamerica

Transamerica is a subsidiary of the Aegon Group that offers guaranteed issue life insurance policies with coverage up to $25,000. Their policies also include level premiums for life. Transamerica has an A+ financial rating and a customer rating of 4.5/5.

Pros:

• No medical exam required
• Up to $25,000 coverage
• Level premiums for life

Cons:

• Maximum coverage of $25,000
• Higher premiums compared to other companies

How Guaranteed Issue Life Insurance Works

Guaranteed issue life insurance policies do not require a medical exam or health questions to be answered. This means that anyone can qualify for coverage, regardless of their medical history or pre-existing conditions. The policyholder pays monthly premiums for the coverage amount they choose, which is paid out to their beneficiaries upon their death.

Unlike traditional life insurance policies, guaranteed issue policies have lower coverage amounts and higher premiums due to the increased risk posed by not requiring a medical exam. Some policies may also have a waiting period before the full coverage amount is available to the beneficiaries.

Pros and Cons of Guaranteed Issue Life Insurance

Pros

• Guaranteed acceptance regardless of health or medical history
• No medical exam required
• Quick and easy application process
• Coverage for final expenses

Cons

• Higher premiums compared to traditional life insurance policies
• Lower coverage amounts
• Waiting periods before full coverage amount is available
• Does not offer cash value or investment options

FAQ

What is the maximum coverage amount for guaranteed issue life insurance?

The maximum coverage amount for guaranteed issue life insurance varies by company, but is typically between $25,000 and $50,000.

Is a medical exam required for guaranteed issue life insurance?

No, a medical exam is not required for guaranteed issue life insurance policies.

What is the waiting period for a guaranteed issue life insurance policy?

The waiting period for a guaranteed issue life insurance policy varies by company, but is typically between 2 and 3 years.

Can I cancel my guaranteed issue life insurance policy?

Yes, you can cancel your guaranteed issue life insurance policy at any time.

Can I add riders to my guaranteed issue life insurance policy?

Some companies may offer riders to their guaranteed issue life insurance policies, such as accidental death benefit or accelerated death benefit options. It is important to check with the specific company for available options.

Conclusion

Guaranteed issue life insurance is a great option for those who may have been turned down for coverage in the past or have a pre-existing condition. It is important to choose a company that offers financial stability and good customer ratings, as well as policy features that fit your needs. While there are some drawbacks to guaranteed issue policies, the peace of mind and coverage they provide for final expenses can be invaluable.