Guaranteed Issue

Full Definition

Guaranteed Issue (GI) is life insurance with no health questions and guaranteed acceptance (subject to age limits, typically 40–80). To protect carriers from adverse selection, GI policies include a graded death benefit: if the insured dies of non-accidental causes in the first 2 years (occasionally 3), beneficiaries receive only the premiums paid plus modest interest (typically 110% of premium). Accidental death pays the full benefit from day one. GI is the fallback product for Final Expense applicants declined on Simplified Issue (usually due to recent cancer, heart attack, stroke, insulin dependency, terminal diagnoses, or hospice). Premiums are the highest in Final Expense. FYC commissions are lower than Level/SI (typically 50–70%).

Example

A 72-year-old declined for Level SI due to stage-3 CKD is approved for a GI whole life policy at $68/month for $10,000 face. If he dies from natural causes in month 14, the beneficiary receives ~$1,040 (premiums paid + interest), not $10,000. Death from an accident pays the full $10,000.

Related Terms

• Simplified Issue — Life insurance underwriting using a short health questionnaire with no medical exam, typically issued in 24 hours with small face amounts.
• Final Expense Insurance — Small-face-amount ($5K–$40K) whole life insurance designed to cover funeral, burial, and end-of-life costs for consumers age 50–85.
• Whole Life Insurance — Permanent life insurance with fixed premiums, guaranteed cash value growth, and a guaranteed death benefit — the product behind most Final Expense sales.

Where This Applies on InsureLeads

• Medicare Leads
• Final Expense Leads
• ACA / Health Leads
• IUL Leads