Final Expense — Glossary

What is Guaranteed Issue?

Small-face whole life with no health questions and a 2-year graded benefit.

Definition

Guaranteed issue (GI) life insurance is a small-face whole life policy ($2,500–$25,000) that cannot decline an applicant for health reasons. There are no medical exams and no health questions — only age (typically 50–85) and U.S. residency are verified. In exchange, the policy carries a 2–3 year graded death benefit and a premium 30–60% higher than simplified issue. Major carriers: Gerber Life, AIG, Mutual of Omaha (Living Promise GI), Great Western, and AARP/New York Life.

Why GI Matters

Roughly 18–25% of FE applicants are knocked out of simplified issue by Rx history (insulin, oxygen, dementia meds) or recent diagnosis. Without a GI fallback, the agent burns the lead and the family loses coverage. Per the American Council of Life Insurers, GI policies make up roughly 12–18% of new FE applications across the industry.

Key Points

  • Face amounts: $2,500–$25,000 (some carriers cap at $15K)
  • Issue ages: 50–85 (some 40–80)
  • No health questions, no Rx check, no MIB pull
  • Graded benefit: ROP + 10% if natural-cause death within 2–3 years
  • Accidental death paid in full from day 1
  • Premium 30–60% higher than simplified issue

Run GI Sales on AgentTech

Build your simplified-issue knockout list and your GI fallback script as separate plays inside AgentTech's FE dialer — agents pivot from one to the other on the same call without leaving the platform. Every call is recorded, the disposition (level, graded, GI, declined, NTO) ties back to the lead, and AI compliance scoring confirms the graded-benefit disclosure was read on every GI sale.

Best Practices

Always disclose the graded benefit in the same breath as the price — don't bury it. NAIC suitability rules require it. If the applicant is <65 and otherwise healthy, push back to a level simplified issue carrier; GI is for the truly uninsurable. Read top FE carriers and FE vs burial vs whole life.

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Frequently Asked Questions

Guaranteed issue (GI) is a small-face whole life policy that cannot decline an applicant for health reasons. The trade-off: a 2–3 year graded death benefit (return of premium plus 10%) and 30–60% higher premium than simplified issue.

Seniors aged 50–85 who have been declined for simplified issue due to terminal diagnosis, recent cancer, dementia, hospice status, organ transplant, or stage 4 cancer. GI is the safety net that lets these applicants still leave a death benefit to their family.

Premiums are 30–60% higher than simplified issue. A $10,000 GI policy on a 70-year-old typically runs $80–$120/month versus $40–$60/month for simplified issue. Carriers like Gerber, AIG, Mutual of Omaha (Living Promise GI), and Great Western lead the GI category.

If the insured dies of natural causes within the first 2–3 years (24 or 36 months depending on carrier), the beneficiary receives a return of all premiums paid plus 10% interest, NOT the face amount. Accidental death is paid in full from day one.

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Scripts, recording, AI compliance scoring, and built-in CRM &mdash; so simplified-issue, graded, and GI sales all live on one platform.

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References & Authoritative Sources

The information on this page is supported by the following official and authoritative sources.

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