What Is Guaranteed Acceptance Life Insurance: Pros & Cons, Benefits and Whether You Should Buy

Guaranteed acceptance life insurance is a type of whole life insurance with no health questions or medical exam required for approval. Rates can vary by age and coverage amount, but a 60-year-old in good health who doesn’t smoke will pay $30 to $150 monthly. Guaranteed issue life insurance is best for people with serious health issues who were denied simplified issue life insurance and still need coverage despite the higher price.

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Last Updated: 9/10/2022
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Guaranteed acceptance life insurance, also known as guaranteed issue life insurance, is a whole life insurance policy with no medical exam or health question requirement. Applicants, usually seniors, are guaranteed approval with a completed life insurance application.

Guaranteed life insurance is best for people who have already been denied simplified issue life insurance because of serious health conditions but still need the coverage and are willing to pay the higher cost.

Is guaranteed acceptance life insurance only available to seniors?

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Key Takeaways

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Guaranteed acceptance life insurance has no health questions or medical exam, and approval is guaranteed.

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A 70–year-old can expect to pay between $30 and $70 for $10,000 in coverage.

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Guaranteed issue life insurance is best for someone with a serious health condition who was declined for simplified issue life insurance.

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What Is Guaranteed Acceptance Life Insurance?

Guaranteed acceptance life insurance, or guaranteed approval life insurance, is a type of life insurance that offers approval regardless of your health status. In exchange for guaranteed approval, you’ll pay higher rates for less coverage than a traditionally underwritten life insurance plan.

How Does Guaranteed Acceptance Life Insurance Work?

Guaranteed acceptance life insurance works by accepting everyone who is eligible without requiring health questions or medical exams as part of the application. However, there is usually an age range for qualifying applicants. A guaranteed life insurance policy is typically for seniors between 50 and 80.

The application process is easy: select the coverage amount you need, complete the quick application and get approved once submitted. While getting approved is easy, guaranteed approval life insurance isn’t for everyone. Consider these qualities of guaranteed whole life insurance to help you decide if this type of life coverage is right for you.

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    Easy application

    There are no health questions on the application, and no medical exam is required for approval. Just complete the application and make your first payment for guaranteed approval.

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    Low coverage

    Unlike traditional life insurance, where you can apply for over $1 million in coverage, guaranteed acceptance life insurance is usually capped at $25,000. However, you can also get small amounts of coverage you typically can’t get elsewhere, like a $2,000 death benefit. The low coverage amount makes this policy ideal for someone without dependent needs but looking to cover final expenses.

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    High premiums

    Guaranteed acceptance premiums are expensive compared to other types of life insurance with health questions or a medical exam. A 50-year-old can expect to pay between $10 and $59 per month for $10,000 in coverage, while $25,000 in coverage may cost between $20 and $150 monthly.

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    Classified as whole life insurance

    Guaranteed issue term life insurance doesn’t exist; the only option you have is whole life insurance for guaranteed acceptance coverage. Having permanent coverage for life is one reason this policy is more expensive than others.

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    Two- or three-year waiting period

    Don’t expect to find guaranteed acceptance life insurance with no waiting period. This policy type has a two- or three-year waiting period, depending on the policy. If you die within the policy's first two or three years, your beneficiary will only receive the premiums paid plus interest.

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With no health questions or medical exam results, guaranteed issue life insurance companies use the highest risk category for rating. Consider what a 60-year-old can purchase for $137 a month: a $500,000 traditional life insurance policy or a $25,000 guaranteed acceptance life insurance policy.

Guaranteed whole life insurance also comes with a long waiting period, between two and three years. If you die within this time frame, your beneficiary only gets the premiums returned plus interest, which varies by company. Unfortunately, there isn’t an option for guaranteed issue life insurance with no waiting period.

How Much Does a Guaranteed Acceptance Life Insurance Policy Cost?

For a 60-year-old, a guaranteed acceptance life insurance policy costs between $20 and $55 monthly for $10,000 in coverage, while $25,000 in coverage costs $50 to $200 per month. This policy is expensive because it’s mostly for seniors with serious health conditions and a high risk of shortened life expectancy.

How much coverage do I actually need?

Average Monthly Premium for Guaranteed Acceptance Life Insurance

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  • Age
    $10k Coverage
    $25k Coverage
  • 50
    $10-$59
    $20-150
  • 60
    $20–$55
    $50–$200
  • 70
    $30–$70
    $170–$290
  • 80
    $110–$310
    $280–$620

Should You Purchase Guaranteed Acceptance Life Insurance?

You should consider purchasing guaranteed acceptance life insurance if:

  • You have serious health issues, like HIV, cancer or kidney disease, regardless of age.
  • You’re confined to bed or are in a nursing home.
  • You’re cognitively impaired.
  • You’ve been diagnosed with a terminal illness.

Although guaranteed life insurance is mostly for seniors, those without serious health conditions should first apply for simplified issue life insurance. It’s cheaper and doesn’t require a medical exam, though there are health questions on the application.

If you're denied, guaranteed acceptance life insurance is your best option. Consider the pros and cons below on whether you should purchase this type of policy.

Pros & Cons

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PROS
  • No medical exam
  • No health questions
  • Fast application
  • Cash value
  • Easy to understand
  • Lifetime coverage
  • Locked-in premiums
  • Coverage can’t be canceled
  • Use death benefit for any reason
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CONS
  • Low coverage
  • Very expensive
  • Waiting period graded death benefit
  • Usually an age cap of 80 to 85

You can get guaranteed acceptance life insurance with no medical questions or exam. Without these qualifying factors, the life insurance application is fast, and approval is usually instant. Guaranteed whole life insurance also builds cash value, which you can use while still alive.

Coverage lasts your lifetime, and guaranteed whole life insurance rates are locked in once approved. But guaranteed issue life insurance comes with a graded death benefit and a two- or three-year waiting period.

Coverage is usually capped at low amounts and can be very expensive. Guaranteed life insurance for seniors also typically has an age limit of 80 or 85. Though guaranteed acceptance life insurance isn’t for everyone, certain people should consider it.

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Reasons to Purchase Guaranteed Acceptance Life Insurance

1

Too old for term life insurance

At a certain age, seniors are no longer eligible for term life insurance. If you’re too old for term, guaranteed life insurance may be a good option.

2

Pay for end-of-life expenses

A guaranteed life insurance policy death benefit can pay for anything, including medical bills and funeral costs.

3

Pay off debts

If you have debts you want to be paid, your beneficiary can use guaranteed life insurance to pay off your remaining debts.

4

Leave an inheritance

If your end-of-life expenses are already taken care of, you can also use guaranteed issue life insurance to leave an inheritance for future generations

5

Not healthy enough to qualify for simplified issue

If your health conditions are serious enough to disqualify you for simplified issue life insurance, guaranteed acceptance life insurance is the best solution.

If you need life insurance, guaranteed acceptance life insurance should be your last resort. You should apply for simplified issue life insurance because it’s cheaper, especially if you need more coverage than guaranteed issue life insurance offers.

Both types of final expense insurance can help seniors pay for end-of-life expenses or leave a legacy behind. If you think guaranteed acceptance life insurance is your best option, check out our guide to the best guaranteed issue life insurance companies.

Frequently Asked Questions About Guaranteed Acceptance Life Insurance

Here are the most common questions about guaranteed acceptance life insurance.

About the Author


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Mandy Sleight is a professional freelance writer and licensed insurance agent. She has her property, casualty, life, and health licenses and has been working in the industry since 2005. Mandy has worked for well-known insurance companies like State Farm and Nationwide Insurance, and most recently as the Operations Coordinator for a start-up employee benefits company.

Mandy earned her Bachelor of Science degree in Business Administration and Management from the University of Baltimore and her Master in Business Administration from Southern New Hampshire University. She uses her vast knowledge of the insurance industry and personal finance combined with her writing background to create easy-to-understand and engaging content to help readers make smarter choices with their budget and finances.