Guaranteed issue life insurance, also known as Burial insurance, is essentially a whole life insurance product with a simple application process and small face value. Typical face values of a guaranteed issue policy range from $5,000 to $25,000 although policies can often be written outside of that range. This type of insurance is designed to be conveniently purchased without the requirement of a medical exam or a complex questionnaire.
A guaranteed issue life insurance policy is ideal where the primary concern is the payment of final expenses such as:
- Medical Bills
- Funeral Expenses
- Outstanding Debts
- Administrative Expenses
Aside from the simple application process this type of insurance features:
- An accumulating cash value that is available for emergency expenses
- A death benefit that never decreases
- Premiums that never increase
- Guaranteed Issue Policy cannot be canceled regardless of age or health as long as premiums are paid
- Accelerated death benefit: Receive up to 50% of the death benefit early if diagnosed with a terminal illness.