What does 'guaranteed issue' life insurance mean?

'Guaranteed issue' life insurance refers to a type of policy that is issued without requiring the applicant to undergo a medical exam or answer health-related questions. This means that almost anyone who applies is accepted, making it particularly accessible for individuals who may have pre-existing health conditions that could disqualify them from other types of life insurance.

This feature is beneficial for those who may not qualify for traditional life insurance due to health issues or age, as it ensures that they can still obtain coverage. Essential to note is that while guaranteed issue policies do not require health assessments, they typically come with certain limitations in terms of coverage amounts and benefit structures, which can impact the overall financial protection provided.

The other options present characteristics that do not align with the concept of guaranteed issue life insurance, such as needing a medical exam, being restricted to older adults, or discussing coverage limitations as the central focus, rather than the acceptance process itself. Understanding these distinctions helps clarify why guaranteed issue is a unique offering within the life insurance market.