A Guaranteed issue whole life insurance, is a type of whole life policy that is issued to the insured regardless of their medical history, chronic illnesses, and prescription drugs. These types of polices are common in usage as Final Expense or Burial Expense. The coverage is usually between $2,000 to $20,000 varies between insurance carriers and state.
Who would mostly Benefit from a Guaranteed Issue?
If the insured individual (prospect or applicant) has an extensive medical history with chronic illnesses that include but not limited to: Severe COPD, Congestive Heart Failure, Diabetic complications, and others, may be a good candidate for a Guaranteed Issue. It is pivotal that the insured go over their health history with their agent before applying, to help determine best coverage and rates.
Most Guaranteed Issue Life insurance plans are issued as Graded policies due to the high risk the insurance companies acquires from the applicant health history. Although a Graded option is not the most optimal, however, it is still coverage better than no coverage at all!