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Guaranteed Issue Life Insurance: What You Need to Know

TeamAckoMay 13, 2024

A guaranteed-issue life insurance plan does not require a medical history, physical exam, or any health-related inquiries for qualification. It guarantees approval for everyone, regardless of their health condition. Additionally, even if you have pre-existing health problems, it provides assurance that your relatives will be taken care of after your death.






Quick approval: An approval process is quick due to no medical examination.

Higher premiums: Expensive option as compared to traditional insurance

No medical examination: The applicant is not required to undergo a medical examination.

High waiting period: Long waiting period before the death benefit is paid.

Guaranteed acceptance:The applicant is accepted for coverage once eligibility criteria are fulfilled.

What is Guaranteed Issue Life Insurance?

Guaranteed-issue life insurance is a type of policy that ensures coverage irrespective of your health or medical history. This means that you are guaranteed acceptance for this type of life insurance, even if you have pre-existing health conditions. It is often referred to as 'no medical exam life insurance' or 'guaranteed acceptance life insurance.' This type of policy is specifically designed for individuals who may face challenges in obtaining traditional life insurance due to their health, age, or other factors.

A real-life example of Guaranteed Issue Life Insurance

Meet Rajesh, a 45-year-old man who has been diagnosed with a critical illness. Due to his health condition, he has been turned down for traditional life insurance policies in the past. Rajesh is concerned about his family's financial future and wants to ensure that they are protected in the event of his death. That's when he discovers the Guaranteed Issue Life Insurance policy.

The Guaranteed Issue Life Insurance policy is specifically designed for individuals like Rajesh who have been diagnosed with a health issue. This policy does not require a medical examination or any health-related questions to be answered, making it a great option for those who have declined coverage due to pre-existing medical conditions.

With this policy, Rajesh is able to get coverage of up to Rs. 30 lakhs without having to worry about his condition impacting his ability to get coverage. Additionally, the policy provides a guaranteed payout to his beneficiaries in the event of his death, giving him peace of mind knowing that his family will be taken care of even if he's not around.

What makes a Guaranteed Issue Life Insurance policy unique is that it also offers additional benefits for those diagnosed with health conditions, such as free annual medical check-ups and consultations with specialists. This can help Rajesh manage his condition and stay healthy, which greatly benefits him and his family.

How Does Guaranteed Issue Life Insurance Work?

To acquire a Guaranteed Issue Life Insurance policy, you must complete an application, typically requiring your name, address, and age. Lifestyle choices, medical history, or other factors affecting your coverage eligibility are not queried.

Guaranteed Issue insurance usually features monthly premiums that remain constant throughout the policy's duration. The death benefit of a Guaranteed Issue policy is paid out to the beneficiary upon the insured's passing. You are free to utilise the policy funds for any purpose, including paying off debts or covering funeral costs.

Guaranteed Issue Life Insurance vs. ACKO Life Flexi Term Plan


Guaranteed Issue Life Insurance

ACKO Life Flexi Term Plan

Coverage Duration

Provides lifelong coverage

Extend or shorten your coverage duration as per your changing needs


Generally higher premiums

Highly affordable premiums

Cash Value

Build cash value, which you can access through a policy loan

No cash value or investment component


Not at all flexible

More flexible to modify coverage amount


Typically smaller than that of a traditional life insurance policy

Large coverage if death occurs during the policy term

Good For

People with serious health conditions

Paying off mortgages, child expenses, daily expenses, and more

Tax Benefits

Premiums and death benefit payout are tax-free

Premium and payout tax-free

ACKO Life Flexi Term Plan

ACKO Life Flexi Term Plan - Pure, Non-Linked, and Tailored to Your Every Need. This exclusive term plan from ACKO provides unmatched flexibility, offering all-inclusive coverage for you and a financial safety net for your loved ones. It welcomes change and allows you to customise your coverage, policy term, payout options, and more based on your changing needs. 

This highly flexible plan offers: 

Extensive Coverage 

Flexible Policy Tenure

Flexible Payout Options 

Will Creation Service

Lower Premiums

Easy Claim Process

Let’s determine which policy works for you. 


Recommended Policy

Flexibility to customise coverage

ACKO Life Flexi Term Plan

Need guaranteed acceptance

Guaranteed Issue Life Insurance

Will creation services

ACKO Life Flexi Term Plan

Quick approval

Guaranteed Issue Life Insurance

Optional riders

ACKO Life Flexi Term Plan

No medical examination or health questions

Guaranteed Issue Life Insurance

Uncertain about long-range financial needs

ACKO Life Flexi Term Plan

The streamlined digital process and rapid claims settlement differentiate ACKO's term plan in the Indian insurance market. If you want an affordable, adaptable term policy, the ACKO Life Flexi Term Plan is likely the ideal choice. 

How to Buy a Guaranteed Issue Life Insurance Plan?

If you have decided that a guaranteed issue life insurance plan is the right choice for you, here are the steps to follow when purchasing one:

  • Start by researching different insurers and their guaranteed issue life insurance policies. Compare coverage amounts, premiums, and any additional features or benefits.

  • Think about how much coverage you will need to ensure your loved ones are financially secure in the event of your death.

  • You will likely need to provide basic personal and medical information when applying for a guaranteed issue life insurance policy, such as age, height, weight, and any pre-existing conditions.

  • Some insurers may allow you to apply online, while others may require you to fill out a paper application. Make sure to answer all questions accurately and honestly.

  • Unlike traditional life insurance policies, guaranteed issue policies typically have no medical underwriting process. Your application will likely be approved quickly within a few days.

  • Once your application is approved, you will need to sign the policy and start paying premiums. Make sure you understand the terms and conditions of the policy before signing.

  • Regularly reviewing your life insurance policy is important, especially when major life events occur, such as marriage, divorce, or children. Be sure to update your beneficiaries if needed.

Additional Riders Available

In addition to the base coverage offered by guaranteed issue life insurance, some insurers may offer additional riders for added protection and benefits. Some of the riders include;

  • Accidental death benefit rider: Provides additional coverage in accidental death.

  • Critical illness rider: Pays a lump sum if you are diagnosed with a critical illness, such as cancer or heart attack.

  • Waiver of premium rider: Waives your premium payments if you become disabled and unable to work.

Choosing the Right Guaranteed Issue Life Insurance Policy

When considering guaranteed issue life insurance policies, navigating the options thoughtfully is essential. Here's a practical guide to help you make the right choice:

  • Assess Your Needs: Evaluate your financial situation and determine why you need life insurance. Consider factors such as outstanding debts, funeral expenses, and providing for your loved ones.

  • Understand Guaranteed Issue Policies: Guaranteed Issue Life Insurance is designed for individuals who may have difficulty obtaining coverage due to health issues. These policies typically have no medical exams and are guaranteed approval, but they often come with higher premiums and lower coverage amounts.

  • Compare Policy Features: Review the features of different guaranteed issue policies, including coverage amounts, premium costs, and any additional benefits or riders offered. Pay attention to factors like the waiting period before coverage begins and the maximum coverage available.

  • Research Insurance Companies: Look into the reputation and financial stability of insurance companies offering guaranteed issue policies. Choose a reputable insurer with a strong track record of reliability and customer satisfaction.

  • Read the Fine Print: Carefully read the policy documents to understand the terms and conditions, including any limitations, exclusions, or restrictions. Ensure you know any penalties for lapsing or cancelling the policy.

  • Seek Professional Advice: Consider consulting with a licensed insurance agent or financial advisor who can provide personalised guidance based on your specific needs and circumstances. They can help you navigate the complexities of life insurance and find the best policy for your situation.

By following these steps, you can confidently choose the right guaranteed issue life insurance policy to protect yourself and your loved ones.

Pros of Guaranteed Issue Life Insurance

Here are the advantages of a Guaranteed Issue Life Insurance policy.

  1. No medical examination or health questions: One of the most significant advantages is that it does not require the applicant to undergo a medical examination or answer health-related questions. This makes obtaining coverage easier for individuals with pre-existing medical conditions or poor health.

  2. Guaranteed acceptance: As long as the applicant meets the age requirements and pays the premiums, they are guaranteed to be accepted for coverage. Individuals with prior health status denials should take special note of this.

  3. Quick approval: Because there is no medical examination or health questions to answer, the application process for a guaranteed issue policy is typically quick and straightforward. Many insurers offer instant approval, allowing individuals to obtain coverage within minutes.

Cons of Guaranteed Issue Life Insurance

Here are the disadvantages of a Guaranteed Issue Life Insurance policy.

  1. Higher premiums: The premiums for a guaranteed issue policy are often higher than those for a traditional life insurance policy because the insurer assumes a higher risk by not knowing the applicant's health status.

  2. Lower death benefit: The death benefit of a guaranteed issue policy is typically smaller than that of a traditional life insurance policy, which may not be sufficient for some individuals.

  3. Waiting period: Many Guaranteed Issue Life Insurance policies have a waiting period before the death benefit is paid out. This waiting period can range from one to two years, during which the premiums must have been paid in full.

Comparing Guaranteed Issue, Traditional, and Simplified Issue Life Insurance Policies

Even though there are various types of policies to choose from, it is important to make an informed decision. While Guaranteed Issue Life Insurance policies have become increasingly popular due to their no-medical-exam-required feature, they may not be the best fit for everyone. Traditional and Simplified Issue Life Insurance policies offer advantages and disadvantages that may suit your needs better.

Traditional Life Insurance policies require a medical exam and health questions to determine eligibility and premium rates. While this can be a disadvantage for individuals with pre-existing conditions, premiums are typically lower than guaranteed or simplified issue policies. Additionally, traditional policies generally offer a larger death benefit and more customisation options, such as term insurance or whole life insurance.

Simplified Issue Life Insurance is another type of policy that falls between guaranteed and traditional policies. While it requires some health questions, it does not require a medical exam. Simplified Issue policies generally offer larger death benefits than guaranteed issue policies. However, premiums can still be higher than traditional policies due to increased insurer risk.

When selecting a life insurance policy, it's a must to consider your individual needs and circumstances. Guaranteed Issue Life Insurance policies may be attractive for those who cannot obtain coverage through traditional policies. However, they may not be the most suitable fit for those who are healthy and can qualify for a traditional policy. It's wise to compare policies and shop around to find the most comprehensive coverage for your needs and budget.

When Should You Buy a Guaranteed Issue Life Insurance?

Guaranteed Issue Life Insurance is an option for individuals who may not be eligible for other forms of life insurance due to medical conditions or age. This type of policy is particularly suited for individuals with serious health issues.

How can one use the benefits of Guaranteed Issue Life Insurance?

The amount from your settlement can protect your loved ones and cover funeral and burial costs, which are getting more expensive each day. You can also leave a small inheritance for a chosen beneficiary from your settlement amount. You can use your Guaranteed Issue Life Insurance policy in a number of ways. There are no limits to how your family members or beneficiaries can use the death benefits fund. Some common uses of the benefit include the following.

  • Covering funeral expenses 

  • Medical bills

  • Debts

  • Emergency fund

  • Daily expenses for the family and 

  • Other needs

Guaranteed Issue Life Insurance can provide coverage to individuals who have been previously denied coverage due to the health status or age of the applicant. While this type of policy has its advantages, it also has its drawbacks, including higher premiums and a lower death benefit. Individuals considering Guaranteed Issue Life Insurance should also consider alternative options, such as traditional and group life insurance, to find the best coverage for their needs and budget.

How To Claim Your Guaranteed Issue Life Insurance

Notify the insurance company: The first step in any claim process is to notify the insurance company of the policyholder's death. This can usually be done by calling the company's customer service department or contacting the agent who sold the policy.

1. Provide necessary documentation

The insurance company will require certain documents to process the claim. These may include a death certificate, policy documents, and any other information the company requests.

2. Wait for the claim to be processed

Once the insurance company receives all the necessary documentation, it will review the claim and determine validity. Processing time can vary, but it typically takes a few weeks to process a claim.

3. Receive the payout

The insurance company will pay the designated beneficiary if the claim is approved. The payout can be a lump sum or a series of payments, depending on the policy terms agreed upon.

Wrapping It Up

Guaranteed-issue life insurance can be a valuable option for those with difficulty obtaining traditional coverage. It offers easy acceptance and peace of mind but comes with its own set of pros and cons. By considering alternative options and carefully reviewing your policy, you can protect your loved ones financially.

Frequently Asked Questions

Below are some of the frequently asked questions on Guaranteed Issue Life Insurance


What is guaranteed issue life insurance?

Guaranteed-issue life insurance is a policy that offers easy and guaranteed acceptance without needing a medical exam or health questions.

How much does Guaranteed Issue Life Insurance cost?

The cost of Guaranteed Issue Life Insurance varies depending on the individual's age, gender, and other factors. Premiums are typically higher than those of traditional life insurance policies due to the increased risk taken on by the insurance company.

How long does it take to get coverage?

Guaranteed Issue Life Insurance policies typically have a shorter approval process than traditional life insurance policies, with coverage typically starting within a few days to a few weeks after the application is submitted.

What is the waiting period for a Guaranteed Issue Life Insurance Policy?

Guaranteed Issue Life Insurance policies may have a waiting period of one to two years before the death benefit is paid out. The beneficiary may only receive a refund of the premium paid or a portion of the death benefit. This is if the policyholder dies during the waiting period.

Can I cancel my Guaranteed Issue Life Insurance Policy?

Yes, most Guaranteed Issue Life Insurance policies can be cancelled at any time, although policyholders may not receive a full refund of the premiums paid depending on the terms of the policy.

Who is eligible for guaranteed issue life insurance?

Guaranteed Issue Life Insurance is typically available to individuals between 50 and 80. However, the eligibility criteria can vary depending on the insurance company that you choose.

Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on industry experience and several secondary sources on the internet, and is subject to changes.


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