With guaranteed life insurance, you can rest easy knowing that you'll be able to get life insurance coverage regardless of your medical history or pre-existing conditions.
Guaranteed life insurance is a type of life insurance policy that guarantees you coverage with no need for a medical exam. That means you can get a policy regardless of your health or medical history. For this reason, guaranteed life is also commonly called guaranteed issue life insurance or guaranteed acceptance life insurance, among other terms.
With guaranteed life insurance, you'll never be denied coverage based on your health or pre-existing conditions.
If health is a concern, guaranteed life insurance may be the right option for you. However, policies may be more expensive.
Guaranteed life insurance is often permanent life insurance. As long as required premiums are paid, this policy never expires.
Some guaranteed life insurance policies (sometimes called guaranteed issue final expense insurance) are meant to cover end-of-life expenses, such as a funeral or cremation.
Guaranteed life insurance is simply an insurance policy for which coverage is guaranteed. If you apply for a guaranteed policy, you can rest easy knowing that you'll qualify and that you'll never be turned away due to your medical history. However, guaranteed life insurance policies (sometimes called guaranteed issue life insurance) have low coverage limits—the maximum amount payable to your beneficiaries when you die is typically $25,000 or less.
Individual guaranteed life insurance policies are usually permanent life insurance policies like whole life insurance or universal life insurance. As long as your premiums are paid, and you meet the other requirements of your policy, your beneficiary will receive the death benefit.
Group life insurance policies, like those offered through an employer, are also considered to be a type of guaranteed life insurance. These policies may offer permanent or term life, depending on what the employer chooses.
No. When buying guaranteed life insurance coverage, you'll never need to take a medical exam or answer any health-related questions. Coverage is guaranteed regardless of these factors.
While a guaranteed life insurance policy can be a great option if your health is a concern, someone who's in good health can typically qualify for less expensive coverage when opting for a policy that does require a medical exam.
Northwestern Mutual's individual life insurance policies (including term life, whole life, universal life, and variable universal life) all require medical review, so they do not include guaranteed life insurance.
However, Northwestern Mutual group life insurance policies do include guaranteed life insurance. This means that if an employer offers Northwestern Mutual group life insurance, there are options the employer can choose to offer a life insurance option that doesn't require a medical exam.
Guaranteed life insurance is often a viable way for individuals who have been denied coverage in the past—due to their medical history or pre-existing conditions—to get coverage. However, if you're in good health, a life insurance policy that requires a health exam is typically less expensive than a guaranteed policy.
As with all other forms of life insurance, the cost of premiums on a guaranteed life insurance policy will depend on a number of factors—including your age, where you live, and the amount of death benefit you choose. Because guaranteed life insurance doesn't require a medical exam, the trade-off is that it will usually cost more than what you'd pay for a similar individual permanent life insurance policy.
Guaranteed life insurance gets its name from the guarantee that a policy will be issued regardless of an applicant's health history. That's why it's also called guaranteed issue life insurance.
Term life insurance, on the other hand, is any life insurance policy that provides a certain amount of coverage for a specific span of time (i.e., the term).
Guaranteed life insurance is usually a type of permanent life insurance, which never expires and will pay a benefit when you die (as long as you pay the required premiums). However, some guaranteed issue policies can be term life (as is the case with many group life insurance policies offered through work).
As is the case with most life insurance, the death benefit offered by a guaranteed life insurance policy is payable only after you have passed away and a death claim has been filed.
But most guaranteed life insurance policies have what is known as a graded period. If you pass away during the graded period, your beneficiaries won't receive the full death benefit; however, they will, at a minimum, typically be reimbursed the full cost of premiums paid into the policy. This period usually covers the first few years your policy is in effect.
A graded period can be thought of as a waiting period on your life insurance policy. If you pass away during the graded period, your policy will pay a lower death benefit to your beneficiaries. The graded period tends to cover the first few years your policy is in place.
AAA, Aaa, and AA+—we've earned the highest financial strength ratings awarded to life insurers from all four major rating agencies. 1
Awarded in the Insurance category: Life & Health industry, Fortune® Magazine's annual survey, 2017Best life insurance company for consumer experience, 2023 2
Ranking for Northwestern Mutual Investment Services LLC, ©2017–2024 and TM, NerdWallet, Inc. All Rights Reserved.The number of people we're proud to call clients, and who put their trust in us.
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1 Northwestern Mutual continues to have the highest financial strength ratings awarded to any U.S. life insurer by all four of the major rating agencies: A.M. Best Company, A++ (highest), 8/23; Fitch Ratings, AAA (highest), 8/23; Moody's Investors Service, Aaa (highest), 11/23; S&P Global Ratings, AA+ (second highest), 5/23. Third-party ratings are subject to change. Ratings are for The Northwestern Mutual Life Insurance Company and Northwestern Long Term Care Insurance Company.
2 ©2017–2024 and TM, NerdWallet, Inc. All Rights Reserved.
Northwestern Mutual is the marketing name for The Northwestern Mutual Life Insurance Company and its subsidiaries. Life and disability insurance, annuities, and life insurance with long-term care benefits are issued by The Northwestern Mutual Life Insurance Company, Milwaukee, WI (NM). Long-term care insurance is issued by Northwestern Long Term Care Insurance Company, Milwaukee, WI, (NLTC) a subsidiary of NM. Investment brokerage services are offered through Northwestern Mutual Investment Services, LLC (NMIS) a subsidiary of NM, broker-dealer, registered investment advisor, and member FINRA and SIPC. Investment advisory and trust services are offered through Northwestern Mutual Wealth Management Company® (NMWMC), Milwaukee, WI, a subsidiary of NM and a federal savings bank. Products and services referenced are offered and sold only by appropriately appointed and licensed entities and financial advisors and professionals. Not all products and services are available in all states. Not all Northwestern Mutual representatives are advisors. Only those representatives with "Advisor" in their title or who otherwise disclose their status as an advisor of NMWMC are credentialed as NMWMC representatives to provide investment advisory services.
