What is “Guaranteed Acceptance Life Insurance”?

Key Takeaway

Guaranteed acceptance life insurance is an option for most individuals aged 40 to 80, offering coverage without the need for medical exams or health inquiries. As the name suggests, approval is typically assured, regardless of your health history. These life insurance policies typically provide smaller death benefits, ranging from $2,000 to $25,000, and are commonly chosen to cover final expenses such as funeral costs. However, there are some drawbacks. There's usually a waiting period before the death benefit is available, and payouts may be limited in the initial years. Additionally, the cost of a guaranteed life insurance policy tends to be higher.


Understanding Life insurance Solutions that are Guaranteed

Guaranteed acceptance life insurance is available to most people ages 40 to 80 years old. Purchasing this coverage does not require undergoing any medical exams or answering health questions. As the name of this policy implies, acceptance for life insurance coverage is guaranteed—regardless of your health history—which is its main selling point. You won’t have to answer questions about prior medical issues or ongoing ones, and typically you won’t be turned down for a life insurance policy, though there may be certain exceptions. In most cases, you are guaranteed insurance approval. This kind of insurance coverage is ideal for some people’s life circumstances, and getting a quote for life insurance rates is typically easy. Because the insurance application process is simple, guaranteed insurance is also very convenient.

Is Guaranteed Acceptance Life Insurance the Right Plan for me? 

The right insurance coverage depends on your age and other factors. If you’re younger, for instance, this may not be the coverage that best fits your life circumstances. Younger people may be able to benefit more from the tax-advantaged growth potential of universal life insurance coverage or the lower costs of term life insurance. 

With guaranteed insurance, there’s usually a longer waiting period before your death benefit may be paid, and the insurance payouts can be limited in the first few years of coverage. Also, this coverage tends to have a higher cost of insurance.

Someone with a medical condition or other lifestyle factors that might make life insurance otherwise unattainable, or who doesn’t mind having a somewhat smaller amount of death benefit coverage, may find greater value in a this type of life insurance policy.

How Much Coverage is Available in Guaranteed Life Insurance? 

Guaranteed life insurance policies tend to have lower death benefit amounts, typically $2,000 to $25,000. Typically, guaranteed life insurance policies are purchased as a final expense policy to cover things like funeral costs. 

How the Death Benefit Works with Guaranteed Life Insurance

The death benefit for guaranteed insurance is reduced for the insurance policy’s first few years. If you die within that time period (for a reason other than an accident), your insurance beneficiary may receive a reduced amount—or in some cases, they will only receive a refund of the insurance premiums paid, plus any applicable interest. Although this type of insurance is guaranteed, the amount of insurance coverage may not always cover your final expenses, such as funeral costs.

The Pros of Guaranteed Acceptance Life Insurance

Having a guaranteed issue life coverage plan can help offer peace of mind, with several advantages:

●     The application process for guaranteed life insurance is straightforward, and you can apply with the assurance of receiving insurance coverage.


● Guaranteed issue life policies do not require a medical examination or complex declarations of your previous medical history.  

The Cons of Guaranteed Acceptance Life Insurance

Guaranteed issue life insurance does have potential downsides, which include the following:

● The maximum coverage values available may be lower when compared to other kinds of life insurance coverage.

● Insurance beneficiaries may not receive a payout or may be granted a lower benefit if you pass away within a short period after purchasing your guaranteed issue life insurance coverage.  

● Insurance premiums for guaranteed issue life coverage may not be cost-effective when compared to the death benefit.

● Most guaranteed issue life insurance products are only available up to a maximum age. If you need advice about choosing the life insurance coverage that is right for you, you should speak to a trusted financial advisor or licensed insurance agent.

Why Choose a Life Insurance Policy Offering Acceptance Guaranteed?

There are several scenarios where guaranteed issue life insurance can be a good solution because it is a life insurance policy you can't be turned down for, although the terms and premiums may depend on your coverage requirements.

For example, you may not qualify for whole life insurance coverage based on your age or health, or it may not be a cost-effective option for you. Typically, companies issue life insurance that is guaranteed to help individuals who may struggle to qualify for traditional life insurance. While a guaranteed life product might offer a lower final payment, it is much easier to qualify for life insurance without any health examinations.

Applicants may choose to purchase a guaranteed issue life insurance product because they would like coverage in place as soon as possible, with minimal inconvenience. In many cases, the payout associated with a guaranteed issue life coverage product might be intended to cover funeral costs or to repay certain debts, loans, and credit cards.

Other situations where this type of guaranteed issue life insurance may be beneficial is if you have a medical condition that potentially could make you ineligible for other coverage solutions, if you have a limited budget to purchase life insurance, or if you only need modest insurance coverage.

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The information above is for educational use only and does not represent insurance, tax or legal advice. It is not a recommendation or solicitation to buy insurance. Please talk to your licensed insurance agent for more information about life insurance and your needs. Please consult with the appropriate professional for tax or legal advice. Guarantees are backed by the claims-paying ability of the issuing insurance company.

Article Author: Meredith Bell
Author Bio: Meredith joined Everly in 2022 and has 20+ years of experience in the life insurance industry. She has held various roles in advertising, marketing, communications, sales and distribution support, and product development. Outside of the office, Meredith lives with her daughter Kennedy and their dog Mavis. Meredith enjoys cooking, camping, gardening, hiking, and bourbon (though not always at the same time). She is a live music enthusiast and an avid reader. Her favorite quote is by Thomas Jefferson: "I cannot live without books." Meredith agrees, but would add cheese, movies, and dogs to that list.

Policies are issued by Everly Life Insurance Company (“Everly Life”), Topeka, KS. Everly Life is not licensed in the state of New York and does not solicit or transact business in New York.

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