When you apply for guaranteed issue life insurance, your insurance company will ask a few basic questions to approve you for the policy and set your rates. Most people who apply for a guaranteed issue policy cannot be turned down unless they fall below or above an age range requirement. Since there’s no medical exam, health questions, or review of your medical records, the application process is generally quick and straightforward.

You’ll also choose a coverage amount when you buy your policy. This death benefit is a “graded benefit,” which means it won’t kick in until after the grading period for your policy.During that graded period, your insurance company will refund your premiums with interest to your family if you die.

Once the graded period is over, your beneficiaries will qualify for the total payout amount. Your beneficiary is the person who receives your death benefit and can be a spouse, child, or anyone else you choose.

Guaranteed issue life insurance can provide life insurance to individuals who need life insurance but don’t have any other alternatives. For example, perhaps they want to provide money for heirs to pay for a funeral or final expenses. Or maybe they want to offer a small legacy for children or grandchildren. This type of life insurance can help people who:

• Have medical conditions that would make it impossible or unaffordable to buy other kinds of life insurance, such as whole life insurance.
• Have restricted budgets for life insurance.
• Are okay with having only a small amount of life insurance coverage, such as $25,000.