Best Guaranteed Life Insurance

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Contributor, Benzinga
November 4, 2022

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Guaranteed life insurance provides protection no matter your health status. You may pay more for your life insurance premiums, but knowing you can ensure that your family can afford end-of-life costs may be priceless. It is one of the types of life insurance that will truly give you peace of mind.

Curious about what a guaranteed life insurance policy can offer you? Learn more with Benzinga’s guide to guaranteed life insurance, so you will feel confident when getting a life insurance quote.

Compare Guaranteed Issue Providers

Guaranteed life insurance policies can be more difficult to find than a term life insurance policy or universal policy. Three guaranteed issue providers we can recommend are Gerber, AIG, and Great Western.

Gerber Life Insurance

With Gerber, if you are between the ages of 50 and 80, you can choose from $5,000 to $25,000 in guaranteed life insurance. Gerber’s application process is relatively easy and doesn’t require a medical exam. There are no health questions to answer either. Acceptance is guaranteed, no matter what your health condition.


AIG provides coverage from $5,000 to $25,000 for those who fall between 50 to 80 years of age. AIG’s application process is also fast and straightforward. More times than not, there is no waiting period, with processing taking up to 15 minutes. You do not have to worry about being rejected due to your health either by AIG.

Great Western Insurance Company

Great Western Insurance Company provides the highest coverage limit, up to $40,000 and $48,000 in some situations. Individuals must fall between 40 and 85 to be eligible for Great Western’s life insurance. With this feature, Great Western Life Insurance Company is the only product available for high-risk individuals under 50. A side note of caution though, with Great Western, you will see a 10% to 25% increase in price compared to Gerber and AIG. This is because its policy is unique.

What is Guaranteed Life Insurance?

Guaranteed life insurance is a form of protection that covers people who would otherwise not be eligible — regardless of health status. It is also known as a form of permanent life insurance with lower policy values that range from $2,000 to $25,000. Guaranteed life insurance is typically meant to cover end-of-life costs.

How Does Guaranteed Life Insurance Work?

It is an assurance that companies who offer guaranteed life insurance issue their clients a policy no matter the condition of their health. Policyholders must fall within a certain age range when applying for this specific insurance. The most common range is between 50 and 80 years old. 

There are also a limited number of insurance companies that offer coverage to people older than 80. There is a limit on options once you surpass age 80.

Guaranteed life insurance is perfect for those who don’t have any other coverage options due to declining health or the simple fact that they cannot afford protection.

Some insurance companies will not offer policies to anyone they consider to be too high of a risk. Health conditions that can inhibit your ability to obtain traditional term or permanent life insurance policies are:

  • Organ donation
  • Dialysis
  • Terminal illnesses
  • Cancer
  • Residing in a nursing home
  • Hospice patients
  • AIDS or HIV infection
  • Other chronic illnesses or diseases

Who Needs Guaranteed Issue Life Insurance?

Guaranteed life insurance policies are most appropriate for individuals who have health problems, are older, or may not have been approved by another company known to sell traditional insurance policies. What makes guaranteed life insurance unique is that you can obtain a policy in a short period without also having to go through a physical examination.

This policy is also suitable for any senior citizen concerned about leaving the responsibility of paying their final expenses to other family members. These life insurance policies are less expensive than the usual traditional policies, which can be helpful to those who are on a limited budget or cannot afford expensive insurance policies.

Benefits of Guaranteed Life Insurance

One of the most significant aspects of guaranteed life insurance is that it is still possible to be accepted even after previously rejected coverage for another type of life insurance. Despite the death benefit being less than term life or permanent life insurance, you will likely have enough to cover final expenses and eliminate any financial stress on the remaining family members.

You don’t have to worry about your failing health issues either. Individuals seeking guaranteed life insurance are not denied coverage because of any preexisting conditions, nor are they required to undergo any health examinations. The ability to acquire guaranteed life insurance is relatively easy and can be done instantly. This allows peace of mind knowing that your insurance policy will cover any final expenses.

Lastly, many insurance companies offer guaranteed life insurance, so it is not challenging to locate a company that will provide you with a policy. Research and compare quotes to determine which policy holds the greatest value for you.  

Disadvantages of Guaranteed Life Insurance

There are some disadvantages that guaranteed life insurance can bring. These might include:

  • Limited coverage: There are low maximum death benefits with guaranteed life insurance most of the time. This means many insurers limit their policyholders from buying more than $25,000 in protection. This can help in certain areas, like paying for funeral services, but otherwise, it doesn’t do much in terms of a longer protection period.
  • Waiting period: Guaranteed life insurance policies have a waiting period before full death benefits can be paid. A prime example would be a death benefit that may phase in over several years, with beneficiaries only receiving a percentage when the policyholder passes away within either a year or two of purchasing the protection. It is highly recommended to carefully consider whether or not guaranteed life insurance is right for you. It may be important to research and explore other options.
  • Relatively high premiums: Guaranteed life insurance premiums cost more than most other types of insurance policies. Because guaranteed life insurance policies do not require medical exams in order to be issued, they will tend to have higher premiums due to the overall poor health of the policyholder.

Is Guaranteed Life Insurance Right for You?

Guaranteed life insurance is the best option if you only need a death benefit. It will likely offer a sufficient payout and alleviate costs. Any funeral costs about $10,000 once you calculate fees and overall expenses.

If you want life insurance for the cash value to pay off a mortgage or education, it is best to look elsewhere.

Research your options and speak with a broker or advisor before you commit to a policy. There are life insurance options to meet a variety of needs. 

Frequently Asked Questions


Is guaranteed life insurance expensive?


Compared to traditional life insurance policies, guaranteed life insurance is more expensive. This is because there are no medical exams or health questions involved. It can be anywhere from two to three times more expensive than your average life insurance policy. Because guaranteed life insurance does not require exams, it is the most popular for those with declining health.


What is the major problem with guaranteed issue?


Under this type of policy, those with serious health conditions cannot purchase policies that offer immediate death benefits. When you compare guaranteed issue with other forms of life insurance, you will notice that they have higher premiums associated with their death benefits since policyholders are already in poor health.


How does guaranteed life insurance work?


Guaranteed life insurance waits to three years to pay death benefits, and if the policyholder dies within that period, the insurance company will pay the policy’s premiums plus 10%.


Benzinga crafted a specific methodology to rank life insurance. To see a comprehensive breakdown of our methodology, please visit our Life Insurance Methodology page.