Final Expense · Know Before You Buy

Guaranteed Issue vs. Level Day-One Coverage: What Those TV and Mail Ads Don't Always Tell You

By Ali El-Hallani, Principal, Michigan Benefit Services

You have probably seen the TV commercials or received the postcards: "You can't be turned down!" "No health questions!" "Guaranteed acceptance!" These policies are real, and they help some people. But before you sign up, it is important to understand how they work.

What is guaranteed issue coverage?

A guaranteed issue policy accepts almost anyone in its age range, with no health questions. Because the insurance company takes on everyone, these policies usually come with a waiting period, often called a graded or limited benefit, that typically lasts two to three years.

If you pass away from natural causes, such as illness, during the waiting period, your family usually does not receive the full death benefit. Instead, they typically get back the premiums you paid, sometimes plus interest. Accidental deaths are often covered in full from the start. Guaranteed issue plans also tend to cost more per dollar of coverage.

What is level day-one coverage?

With a level benefit policy, the full death benefit is in force from the first day your policy starts. If you pass away for any covered reason, even in the first month, your family receives the full amount.

To qualify, you answer a short set of health questions. Many people are surprised to learn they qualify, even with common conditions such as high blood pressure, diabetes, or a past heart condition. Individuals managing more serious health conditions, including those who use oxygen, receive dialysis, or have been diagnosed with congestive heart failure or lupus, may also have coverage options available through select carriers. Eligibility and the type of coverage offered depend on the carrier and each person's individual health history.

A simple comparison

Our approach

At Michigan Benefit Services, we offer level day-one coverage with no medical exam. We compare several top carriers to find the one most likely to approve you for full coverage from the start, at the best price for your health. Guaranteed issue is a good option for some people, but it should be the last option, not the first.

Before you mail that card back

• Ask whether the policy has a waiting period, and how long it lasts.
• Ask what your family would receive if you passed away in year one.
• Ask whether the price or the coverage amount changes as you get older.
• Call us for a free comparison before you sign anything.

Policy features, waiting periods, benefits, and eligibility vary by carrier, product, state, and individual health history. Coverage is subject to underwriting approval. This article is general information and does not describe any specific company's product.