How is Guaranteed Acceptance Life Insurance Different?

When you’re shopping for life insurance coverage, it’s vital that you find the type of policy that is going to work best for you. There are several different kinds of coverage, and all of them are going to have different pros and cons that you’ll need to consider based on your specific needs.

Buying a life insurance plan is one of the most important purchases that you’ll ever make for your loved ones. It’s vital that you get the perfect plan for your family. One type of coverage that we get a lot of questions about is guaranteed acceptance life insurance. A lot of our clients get confused about the differences between these plans a no exam plan, but they are very different options.

At, it’s our mission to ensure that you’re getting the best life insurance coverage for your family. We know that shopping for life insurance is not a fun task, but that’s why we are here to help. This article is going to look at guaranteed acceptance life insurance coverage and the different advantages of these plans.

What is a Guarantee Acceptance Life Insurance Plan?

As you can probably guess from the name, these plans are going to accept you for coverage, regardless of your health or any pre-existing conditions that you have. If you’ve ever been declined for life insurance in the past, you may assume that you can’t get insurance protection, but these plans will ensure that regardless of you who are or your health, you can get coverage. The only thing that you will need to provide is your name, age, address if you’re a smoker and a form of payment. After that, you will have life insurance coverage.

Guarantee Acceptance Vs. No Exam Life Insurance

Because these two types of plans are similar, there is a lot of confusion between the two, but there are several unique distinctions.  One of the main differences is the amount of coverage that you can buy. With a guaranteed acceptance life insurance plan, you will only be able to purchase $25,000 worth of insurance coverage, which is not enough life insurance for most families. With a no exam life insurance policy, you can purchase around $250,000 – $500,000 worth of life insurance. With some companies, you can even purchase up to $1 million of coverage.

Another difference is the price. With a guaranteed acceptance life insurance plan, the insurance company doesn’t ask any health questions, and they don’t require a medical exam, which means they get almost zero information about you, and that is going to mean they are taking a huge risk giving you life insurance coverage.  They are going to offset that risk by charging you higher insurance premiums. With a no exam plan, they won’t require a medical exam, but they are going to ask you dozens and dozens of health questions. No exam life insurance policies are more expensive than a traditional policy, but they are going to be more affordable than a guarantee issue life insurance plan.

Is a Guarantee Acceptance Plan Right for You?

Guarantee acceptance plans are always an option for insurance coverage, but they are not always the best choice. These plans are unique, which means that they are not going to work well for everyone. There are several questions that you should ask yourself when you’re shopping for insurance coverage.

The first question that you should ask is, “how much life insurance do I need?” Not having enough insurance coverage is going to be a drastic mistake. If your plan is too small, then your family could be left with additional bills and expenses that they wouldn’t have the money to cover if something tragic were to happen to you. These guarantee issue life insurance plans are typically purchased by seniors who no longer have a significant amount of debt or expenses left over. If you have more than $25,000, then you will probably want to look elsewhere for your insurance protection.

The next question that you should ask yourself is, “Do I have any other options?” Unless you’re avoiding a traditional policy because you don’t want to take the medical exam, then a guarantee issue plan should be the last resort for insurance coverage. Even if you’ve been declined in the past, more than likely, there is an insurance company that will accept your application. Every insurance company is different, and all of them are going to look at your application differently. You probably just looked at the wrong company for your coverage.

Another possible difference is the waiting period. No exam plans may have a two-year waiting period attached to them, and the plan will not be in force until two years after the date that you purchase the coverage. With a guarantee plan, you have coverage from day one. Because these plans are smaller, the insurance company is not going to enforce any waiting period.

Working with an Independent Insurance Agent

The best way to ensure that you’re getting the best coverage is to work with an independent insurance agent. Unlike a traditional insurance agent, independent brokers work with dozens and dozens of highly rated companies across the nation. Our experienced agents work with some of the most highly rated companies across the nation and can bring personalized quotes directly to you.

You never know what’s going to happen tomorrow, which means that you shouldn’t wait any longer to get the coverage that you and your family deserves. If something tragic were to happen to you, and you didn’t have life insurance coverage, your family would be stuck with all of your bills and final expenses. Don’t wait any longer. Contact one of our agents today, and we would be happy to answer any questions that you have and connect you with the best plan available.


Susan Wright holds a BA from Michigan State University and an MBA from St. Louis University. Having over 20 years of working experience in the insurance and financial services industry, she has trained more than 10,000 financial services representatives. Susan has had licenses in real estate, insurance, and NASD Securities, and she has earned nine industry professional designations, including CLU, ChFC, RHU, REBC, CSA, CLTC, CCFC, CSS, and ADPA. Read more about her on Google+

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