Top 3 Guaranteed Issue Life Insurance Companies

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  • Top 3 Guaranteed Issue Life Insurance Companies

If you landed on this page, you are probably looking for the top guaranteed issue life insurance companies. With so many choices presented to consumers, how do you know which company will be best for you? In this review, I will compare rates, benefits, and financial ratings for the top 3 guaranteed issue life insurance companies, and hope to clear any doubt you have regarding which company will be best for you.

Related: Top 20 final expense companies.

What Is Guaranteed Issue Life insurance Policy?

Guaranteed acceptance life insurance policies, as their name implies, are guaranteed coverage. When you pass away, these policies offer cash benefits to a beneficiary that you named in your policy. The insurance company will provide this plan to any applicant regardless of their history or present health conditions.

Life policies last for as long as you pay for them; there is no expiration or a period limit. Typically, you must be a policyholder for two to three years before you can collect the benefit. Guaranteed issue insurance caters to those who can’t get term life insurance anywhere else.

Do You Need Guaranteed Issue Life insurance Policy?

Don’t fall for the “no health questions, no exam needed” catchphrase. Guaranteed issue insurance is for individuals between the ages of 50-85 (depending on the insurance company) who otherwise can’t qualify for a traditional life insurance policy due to medical issues. These policies are typically the only option or last resort they have left.

This isn’t for someone who is in perfect or decent health, who just doesn’t want to answer any health questions or take an exam. Keep in mind that the maximum death benefit is $25,000, and ALL guaranteed issue policies have graded benefit. Graded benefit means that if you die in the first 2-3 years of the policy being issued (unless the death is a result of an accident), your beneficiaries will not get the death benefits you purchased, only the premium paid and some interest.

Who Should Consider Guaranteed Issue Life Insurance

Who Should Consider Guaranteed Issue Life Insurance

Guaranteed acceptance life insurance is typically for individuals between 50 and 85 years old. It is often the last resort for those who can’t qualify for other kinds of life insurance policies due to their medical issues, and who don’t have the option to buy life insurance through their workplace.


  • They are a lot simpler to obtain than other types of life insurance policies. For people who typically wouldn’t qualify for term life insurance mainly because they have serious health problems, guaranteed acceptance life insurance is a decent option to consider.
  • The approval process takes only a few days. There’s no requirement for a clinical exam, so your coverage goes in force faster than term life insurance. Plus, if you pay your premium every month, the policy will never expire.
  • If you are elderly or otherwise very ill and have minimal to no savings that may be used for a funeral, guaranteed issue life insurance could provide you with adequate funds to pay for a funeral.


  • For starters, guaranteed issue life insurance is overpriced. It’s probably the most expensive life insurance product out there.
  • You don’t get a lot for your premium. Guaranteed issue life insurance death benefits are minimal. Some policies can offer death benefits of $25,000. However, it’s more likely that a policy would provide between $5,000 and $10,000.
  • Because of the higher premiums and the smaller amount of coverage, you could end up spending much more for your premiums compared to the death benefits your beneficiaries will receive. Plus, if you die soon after, your beneficiary will get only the payments paid and perhaps some interest, based on the company that issued the policy.

What to Expect When Buying Guaranteed Issue Life Insurance Policy

Guaranteed Issue life risks
  • Policy amount up to $25,000.
  • Must be 50–85 years old.
  • Approval is guaranteed, regardless of your health.
  • No health questions asked.
  • No exam.
  • Level premium (the premium will stay the same for life).
  • Whole life policy, which means you will have cash value with the policy that you may borrow in the future.
  • Graded benefits between 2-3 years (depending on the company).
  • If death is due to an accident, your beneficiaries will get the full death amount you purchased.
  • Policy death benefit is not subject to federal income tax when paid to your beneficiary.
  • 30-day free look period.

Our Top 3 Guaranteed Issue Life Insurance Companies

We recognize that there are more than 3 companies who offer guaranteed issue life insurance policies. The reason we chose the top 3 is because they offer the most competitive rates and have an above-average graded benefit clause when compared to other companies. The companies are AARP, AIG, and Gerber. Let’s take a look at their products.

aarp guaranteed issue life insurance company

AARP Guaranteed Issue Product Review

AARP isn’t an insurance company, it’s simply an endorser of products and services which are sold by other companies. You can go ahead and read a detailed review about AARP. For the life insurance product, it’s sold by New York Life, which without a doubt is one of the biggest companies in the world, with a financial rating of A++(the highest). Keep in mind a company’s financial rating says nothing about its products or services, it merely reveals if the company is financially strong enough to pay policyholders’ claims when they need to do so.

  • Must be an AARP member.
  • Not available in all states.
  • Issue ages 50–85 (45 to 80 for spouses of AARP members).
  • Face amount values are $2,500–$25,000.
  • Monthly premium will end at age 95, but your coverage will last a lifetime.
  • Graded death benefit for the first 2 years. If an applicant dies for any reason other than an accident, AARP will pay the premium paid, plus 25% interest.
  • Accelerated benefit – after 2 years, if you are diagnosed with a terminal illness and have a life expectancy of 12 months or less, you can tap into 50% of your death benefit.

AARP Guaranteed Issue Sample Monthly Rates

Male Monthly Rates


Female Monthly Rates

aig guaranteed issue life insurance company

AIG Guaranteed Issue Product Review

AIG Life Insurance Company is one of the biggest life insurance companies in the world, with more than 88 million policyholders in 130 countries. AIG has been around since 1919 and has an A (excellent) rating according to A.M. Best. It’s worth noting that the guaranteed issue product is sold by select brokers only, or directly through AIG. Which means, if you want to buy AIG, you either have to look for a broker who can sell their products or call AIG directly.

  • Issue ages 50–85.
  • Face amount values are $5,000–$25,000.
  • Chronic illness rider is included at no extra cost – if you get sick with a qualifying chronic illness, you can access up to 50% of the death benefit amount.
  • Terminal illness rider is also included – if you have a life expectancy of 24 months or less, you can access 50% of your death benefit amount.
  • Riders aren’t available in all states.
  • Graded death benefit for the first 2 years. If an applicant dies for any reason other than an accident, AIG will pay the premium paid plus 10% interest.

AIG Guaranteed Issue Sample Monthly Rates

Male Monthly Rates


Female Monthly Rates

gerber life guaranteed issue life insurance company

Gerber Guaranteed Issue Product Review

Gerber Life Insurance Company has been around since 1927 and has an A (excellent) rating, according to A.M. Best. Today, Gerber Life is licensed to sell life insurance throughout the United States, Canada, and Puerto Rico. Gerber has over $45 billion of life insurance products in force and over 3.3 million policies. Here is another detailed review about Gerber Life.

  • Must be a US citizen or permanent legal resident to apply.
  • Issue ages 50–80.
  • Face amount values are $5,0000–$25,000.
  • Graded death benefit for the first 2 years. If an applicant dies for any reason other than an accident, Gerber Life will pay the premium paid plus 10% interest.

Gerber Guaranteed Issue Sample Monthly Rates

Male Monthly Rates


Female Monthly Rates


How to Choose the Best Guaranteed Issue Life Insurance Company

tips for best rates
  1. You can start with comparing some rates from the top guaranteed issue life insurance companies. Take into consideration the face amount value and the age. For example, if you are 50 years old and only need $2500 in death benefits, you don’t have many options since only a few companies offer this amount. As for the age, if you are over 80 and are looking for life insurance, again, you may only find one company who caters to your specific situation.
  2. Make sure that the company you choose is financially stable and has a good reputation for paying claims.
  3. Make sure you understand the graded benefit clause each policy offers, and take this under consideration when weighing your options.
  4. Before you make your final determination regarding a plan, use an insurance broker who may be able to shed some light and see if he/she can find a better plan. The reason I’m saying this is because plans change on a consistent basis, new products become available, and underwriting guidelines are constantly evolving. A broker’s job is to be informed and up-to-date, and you will benefit from their inside knowledge.
  5. You may be better off using your savings (provided you have some), instead of buying a guaranteed issue policy. If your main concern is paying for your burial expenses, and you have at least $10,000 in savings, you may not need a life insurance policy after all. In insurance lingo we call this “self-insured.”

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2018-08-03T06:30:44+00:00August 20th, 2017|Categories: Seniors Life Insurance, Types of Life Insurance|4 Comments

About the Author:

Ron is a licensed life & health insurance broker. He has two amazing rescued pit bull puppies. He also enjoys real food, heavy squats, critical thinking, and reading.


  1. Gloria j J Conley 04/02/2018 at 12:59 PM - Reply

    My husband needs life insurance but was turned down again. Because of health issues. They say health issues are no concern. Not true canyon help. Thank you

    • Ron Attias 04/02/2018 at 1:51 PM - Reply

      Hi Gloria,

      Any time you apply for a life insurance policy other than a guaranteed issue, health issues are a concern. I will need to know a little more about your husband’s health history and the reason he was turned down before I can recommend a policy. I’ll email you shortly.

  2. james hay 04/16/2018 at 9:09 PM - Reply

    I’m 69 (birthday May 3) so am in a hurry to beat the 70 yr old increase. I have diabetes controlled with insulin and take meds for blood pressure and cholesterol.BP and cholesterol are always good now. I need to find a policy that will be good in the Philippines as we plan to retire there after my wife retires in 4 years. Thanks.

    • Ron Attias 04/17/2018 at 6:40 AM - Reply

      Hi James,

      I’ll need to know a little more about the death benefit amount and policy type. I’ll email you shortly.

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