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.

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 issued 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.

What To Expect When Buying Guaranteed Issue Life Insurance Policy

  • 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, Gerber, and AIG. Let’s take a look at their products.

AARP Guaranteed Issue Product Review

aarp guaranteed issue life insurance company

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 ratings 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 Rates

Male Monthly Rates

AGE$5,000$10,000$15,000$25,000
50$23$45$67$110
55$26$51$76$126
60$31$60$90$148
65$36$71$106$175
70$43$85$126$210
75$51$101$151$251
80$54$106$158$262
85NANANANA

Female Monthly Rates

AGE$5,000$10,000$15,000$25,000
50$20$38$56$92
55$23$44$65$107
60$27$52$78$128
65$32$63$93$154
70$39$76$113$187
75$47$92$137$227
80$49$96$144$238
85NANANANA

Gerber Guaranteed Issue Product Review

gerber life guaranteed issue life insurance company

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 Rates

Male Monthly Rates

AGE$5,000$10,000$15,000$25,000
50$19.66$38.41$57.15$94.65
55$23.51$46.11$68.70$113.90
60$28.78$56.65$84.52$140.25
65$34.60$68.29$101.98$169.36
70$44.41$87.91$131.41$218.40
75$62.79$124.67$186.54$310.29
80$110.92$220.92$330.92$550.92
85NANANANA

Female Monthly Rates

AGE$5,000$10,000$15,000$25,000
50$14.53$28.14$41.75$68.98
55$18.38$35.84$53.30$88.23
60$23.70$46.48$69.25$114.81
65$28.19$55.46$82.73$137.27
70$34.83$68.75$102.67$170.50
75$45.60$90.29$134.98$224.36
80$76.54$152.17$227.79$379.04
85NANANANA

AIG Guaranteed Issue Product Review

aig guaranteed issue life insurance company

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 Rates

Male Monthly Rates

AGE$5,000$10,000$15,000$25,000
50$26.96$51.92$76.89$126.81
55$29.25$56.50$83.74$138.24
60$32.58$63.17$93.75$154.92
65$37.55$73.09$108.64$179.73
70$47.57$93.14$138.71$229.85
75$63.25$124.49$185.74$308.23
80$88.57$175.15$261.72$434.87
85$150.43$298.86$447.30$744.16

Female Monthly Rates

AGE$5,000$10,000$15,000$25,000
50$18.92$35.83$52.74$86.57
55$20.93$39.86$58.78$96.64
60$23.57$45.14$66.70$109.84
65$28.26$54.51$80.76$133.27
70$36.21$70.41$104.62$173.03
75$48.91$95.82$142.73$236.54
80$68.56$135.12$201.69$334.81
85$103.10$204.20$305.31$507.51

How to Choose the Best Guaranteed Issue Life Insurance Company

  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.”
2017-05-29T17:08:27+00:00 April 15th, 2017|Company Reviews|0 Comments

About the Author:

Ron is a licensed life & health insurance broker. He has 2 amazing rescue pit bull puppies and enjoys real food, heavy squats, critical thinking, and reading.

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