You were declined for life insurance. The agent says your only option is a guaranteed issue life insurance policy. But, the policy has a waiting period. You don’t like that. You want a guaranteed issue life insurance policy with no waiting period.

You’ve come to the right place. We can help.

John, my agent says that is impossible.

That is the usual response, but no, it is not impossible. We have 3 opportunities where people can obtain life insurance at guaranteed issue with no waiting period.

Here is what we will discuss.

• What Is Guaranteed Issue Life Insurance
• Who Can Use Guaranteed Issue Life Insurance
• Limitations Of Guaranteed Issue Life Insurance
• 3 No Waiting Period Options
• Other Life Insurance Options
• Final Thoughts

Let’s jump in and give an overview of guaranteed issue life insurance.

What Is Guaranteed Issue Life Insurance?

Guaranteed issue life insurance is simply life insurance without any underwriting. You essentially fill out an application and voilà, you have life insurance.

No underwriting means no health questions. The carrier does not:

• Look up your health claim information in the MIB
• Require blood and urine samples
• Look up your prescription drug history
• Look up your public records

You don’t have to go through any extensive underwriting process. Most applications are a few pages.

Traditionally, guaranteed issue life insurance is a whole life insurance policy. Most carriers offering guaranteed issue whole life insurance allow a maximum $25,000 death benefit.

However, we also have access to a guaranteed issue term life insurance policy. Up to $50,000 available. In my opinion, it is a good plan up to age 55 or so. You can self-enroll here.

Who Can Use Guaranteed Issue Life Insurance?

Anyone. Guaranteed-issue life insurance is good for adults who have moderate to severe health conditions. It is also suitable for children and young adults who have moderate to severe health conditions that will carry with them throughout their adult life. Here are some health condition examples of children and adults who could use a guaranteed issue life insurance policy:

• down syndrome
• moderate to severe autism
• type 1 diabetes
• amputations related to illnesses like diabetes
• COPD
• emphysema
• HIV/AIDS
• lupus
• moderate to severe depression or anxiety
• bipolar depression
• schizophrenia
• heart disease
• heart attack
• stroke
• internal cancer (recent)
• metastatic cancer
• obesity
• smokers with other health complications
• muscular dystrophy
• cerebral palsy
• Alzheimer’s
• dementia
• recent stent placement
• angioplasty
• kidney disease
• kidney failure
• liver disease
• hepatitis
• drug use / substance abuse
• lifestyle situations
• Prior / recent felonies and crimes

Some Business Owners Can’t Obtain Life Insurance

However, some people just can’t get their hands on life insurance, and these people include:

(1) self-employed individuals without benefits

(2) people who work for small businesses without benefits

Guaranteed issue life insurance could be the only option.

While that sounds good, there are limitations that you need to be aware of. We discuss these limitations next.

Limitations Of Guaranteed Issue Life Insurance

Applying for guaranteed issue life insurance is easy. However, limitations exist, and these limitations include:

(1) limited death benefit – carriers that offer guaranteed issue life insurance usually limit the death benefit to $10,000 or $25,000. While this might be adequate for final expense or burial insurance, it isn’t enough to cover a mortgage or other needs upon death.

(2) limited ages – most guaranteed issue life insurance is eligible between ages 50 and 85. This leaves children and young adults – who either have health conditions or simply want an easy application process – out of the picture.

(3) waiting period – most guaranteed issue life insurance plans have a waiting period on the death benefit. Technically, this is called “graded benefit”, but it is, in layman’s terms, a waiting period. Usually, the carrier enforces a 2-year waiting (some carriers have 3-year waiting periods) period. This waiting period is enforced on sickness and illnesses only. If you die by an accident, the death benefit is 100% paid in full. After the waiting period, the death benefit is paid in full regardless of the cause of death.

What happens if you die within the waiting period by sickness? Your surviving family receives the premiums back + interest. This means that guaranteed issue life insurance is not for those who are terminally ill.

(4) affordability – the premium cost of guaranteed issue life insurance is more expensive than that of a typical underwritten life insurance policy. For example, a 55-year-old, non-tobacco male needing $15,000 for burial insurance could spend $50 per month on an underwritten policy or $85 per month on a guaranteed issue life insurance policy.

These are some of the limitations on guaranteed issue life insurance.

3 Guaranteed Issue Life Insurance Options With No Waiting Period

Most people are OK with the limitations of the guaranteed issue life insurance with the exception of the waiting period.

They just don’t want a waiting period with their life insurance.

That is right, John. I don’t like that.

The good news is that we work with 3 guaranteed issue life insurance options that contain no waiting period.

However, not everyone is eligible for these options. Nevertheless, they are guaranteed issue life insurance options with no waiting period.

We discuss them next.

Guaranteed Issue Term Life Insurance With No Waiting Period For The Gainfully Employed

If you are gainfully employed, we have a guaranteed issue term life insurance plan with no waiting period available through an association.

Gainful employment means working more than 30 hours per week and earning money that supports your life and situation. You can work 2 or more jobs, you just need to work more than 30 hours per week AND earn an income.

It is term life to age 80. Rates are reasonable. As we mentioned, no waiting period exists with this guaranteed issue term life plan.

While there are no health questions or underwriting, this life insurance is not available in every state.

Moreover, you will have to show proof of your employment. This can be done through a pay stub if you are a W-2 or your schedule C (or another type of tax schedule) and a current revenue statement/bank statement if you are self-employed.

We have helped many people who may be unable to obtain traditional life insurance, but are still generally healthy and working full-time.

To be clear, you are not eligible for this plan if you are not gainfully employed. This means that people who are (including, but not limited to):

• disabled and not working,
• have a terminal illness of 24 months or less,
• under a POA/Guardianship, or
• have a severe, current ailment like cancer or ALS

are ineligible for this life insurance.

Guaranteed Issue Term Life Insurance With No Waiting Period If You Are A Business Owner

If you are a business owner, you can purchase life insurance through your business.

Life insurance through your business is different than individual life insurance.

A few requirements exist:

• need to be in business for a minimum of 1 year,
• must meet employee participation requirements as follows:

The benefit of this plan is that even businesses with only 2 employees are eligible, at guaranteed issue, for life insurance with no waiting period.

The carrier also accepts husband and wife businesses and family businesses. Many group employer carriers do not.

We have helped many business owners with this insurance, and I am sure we can help you, too.

Guaranteed Whole Life Insurance With No Waiting Period

We are one of the few brokers who work with a fraternal benefits carrier that offers guaranteed issue whole life insurance with no waiting period.

It is not available in every state. The carrier does accept a proper POA or guardianship, so the plan is a good option for families who have loved ones lacking in mental capacity.

However, traditionally, they want the $10,000 plan paid in a lump, single-premium. The initial viewpoint from many families is that it is too expensive. For example, $10,000 on an 18-year-old man with down syndrome might cost $2,500.

However, extrapolate this amount over 20 years, for example. The $10,000 costs $10.41 per month.

A Bonus: (Almost) Guaranteed Issue Life Insurance Plan With No Waiting Period

John, these options sound good, but they don’t fit my situation.

I understand. Another life insurance option exists: (almost) guaranteed issue life insurance with no waiting period.

It is really designed for special situations where the insured applicant has contractual commitments. These include (but, are not limited to):

• bank loans
• buy-sell agreements
• divorce decrees

Additionally, you don’t qualify for traditional types of life insurance.

For example, we worked with a lawyer buying out a practice. He had a drug abuse situation 2 years ago. The bank required life insurance on him to satisfy the loan commitment. Most traditional carriers do not accept an application on someone with a substance abuse situation until the person has been clean, with no relapse and treatment, for a minimum of 3 to 5 years.

He was approved for the life insurance, which allowed him to buy the practice.

John, why is it “almost” guaranteed issue?

Because the carrier is extremely lenient with health conditions. However, they will still decline an application in extreme situations. For example, the carrier will likely decline extremely obese individuals.

Other Life Insurance Options With No Waiting Period

John, I’ve been declined for life insurance.

Helpless. Sad. Depressed. Angry. Is this how you felt? People describe these feelings when declined life insurance.

I am assuming you have a situation where you can’t obtain any life insurance. However, often, the solution is to pivot to another carrier. A carrier that will affordably underwrite your condition or situation.

For example, many life insurance carriers decline people who scuba dive. However, there are many who will, and at an affordable insurance premium. What’s the solution? Obviously, it is to work with those carriers that underwrite your unique situation.

And, how do you do that? By working with an experienced brokerage group like My Family Life Insurance.

Situations Where We Have Helped People Obtain Life Insurance With No Waiting Period

We have helped many people who were declined life insurance. Other agents and brokers told them the next, best option is a guaranteed issue policy.

These people then call us, and we help them obtain life insurance with no waiting period, with traditional carriers.

The list below shows some of the areas we have helped people obtain life insurance with no waiting period:

• high-functioning autism and able to fill out a life application independently
• type 1 diabetes
• COPD
• emphysema
• HIV/AIDS (it’s true)
• lupus
• moderate to severe depression or anxiety
• bipolar depression
• schizophrenia
• heart disease
• heart attack
• stroke
• internal cancer (5 years in remission)
• metastatic cancer
• obesity
• smokers with other health complications
• mild cerebral palsy
• stent placement 2+ years ago
• angioplasty 2+ years ago
• kidney disease
• liver disease
• hepatitis
• drug use / substance abuse
• lifestyle situations
• Prior / recent felonies and crimes

John, this is practically the same list earlier!

Yes. Depending on your situation, life insurance with no waiting period exists. We have helped many obtain life insurance with no waiting period when other agents or brokers said that wasn’t possible.

How? Well, a few reasons. We:

• Have access to many carriers,
• Work well with underwriters,
• Continually educate ourselves on the latest changes,
• Seek the best options for our clients (we have a fiduciary duty to do so), not us, and
• Take a planner’s perspective when it comes to life insurance. (I am a CFP® professional and will tell you if other, viable options exist.)

Other Life Insurance Options With No Waiting Period

If you are working or active in an association, you may have a better chance at obtaining affordable guaranteed issue life insurance with no waiting period. Why? Carriers usually offer guaranteed issue life insurance in these situations. It all has to do with underwriting.

In large groups, such as an employer or association, the carrier looks at the entire group and spreads its risk across the group. It knows some people are healthy and others are not. That’s OK. If they did their underwriting correctly, they know the higher risk of the population will offset with the healthy, not-so-risky remaining population. They will ultimately make a profit and have no need for individual underwriting.

Group employer or association life insurance coverage usually has no underwriting questions, exam, blood draw, etc. as with individual life insurance. Premiums are usually higher than that of an individual policy for a healthy individual. However, the ease of attainability makes group employer or association coverage viable. If you have severe health conditions or know you would be rated or declined for life insurance, group employer or association coverage is beneficial.

Now You Know 3 Guaranteed Issue Life Insurance Options With No Waiting Period

We hope you can see that affordable guaranteed issue life insurance exists with no waiting period.

Do you need assistance? We can help you out.

Please contact us or use the form below. As with anything we do, we place your interest first. What does this mean? It means that if another life insurance is better for your situation, that is what we recommend. It doesn’t matter if we have that carrier/plan or not. If not, then we help you get in touch with the people who can help. This is the only way we know how to work with our clients.