Guaranteed Issue & Health Insurance

Guaranteed issue insurance is issued to a consumer, regardless of the consumer's current health. It may be offered by companies with specialized high-risk offerings, or it may be mandated by state law. Usually, laws aimed at requiring guaranteed issue coverage also require that the coverage be given at a uniform fixed price. Laws requiring this type of coverage have been considered in a number of jurisdictions. There are also laws that require guaranteed coverage of particular procedures, such as preventive screening for colorectal cancer.

Guaranteed Issue Life Insurance Some companies specialize in offering policies advertised as guaranteed issue life insurance. These companies will issue life insurance policies with no required physical exam. Typically, the companies do require the insurance applicant to answer questions, that may lead to denial of coverage. However, there are companies that will offer coverage with no exams and no questions. Generally, this type of policy will only cover funeral expenses. It is difficult to find any guaranteed issue policy that will provide coverage over $15,000 to $20,000. These policies also tend to have high premiums, which can end up exceeding the benefit amounts. The policies will usually have a graded benefits clause under which the benefits are limited in the event that the insured dies within two or three years of obtaining the policy. Graded benefits clauses are intended to prevent people from signing up for a policy when they are literally on their deathbed, and then having the full policy death benefit paid to their estates.

Controversy Over Guaranteed Issue Insurance Various issues have arisen with regard to proposals to enact state laws requiring guaranteed issue health insurance. There are several arguments put forth by those who oppose such insurance laws. The primary argument is that this type of insurance will unfairly lead to increased insurance costs for healthy people. The argument points to the idea that in order for an insurer to be able to afford to cover people with existing health problems, the insurer will need to charge higher rates; and those rates will need to be applied to everyone. Along with higher rates, it is argued that fewer choices will result. A related argument is that guaranteed insurance will tend to discourage people from buying health insurance until they are actually sick, which would contribute to the need for higher premiums. The idea is that healthy people will not need to buy health insurance now, if they know they can always obtain it when they get sick. The effect of guaranteed issue insurance is argued to be the opposite of guaranteed renewability, where the renewability is seen as a way of encouraging healthy people to obtain coverage.

Proponents of guaranteed issue insurance primarily argue that this insurance is needed in order to obtain fairness in the healthcare system. They suggest that it is not morally acceptable to have a system in which some disadvantaged people become uninsurable, and are unable to obtain proper healthcare as a result. Fore more information visit us online at

Dennis Alexander - leading consultant for employer group and individual/family health insurance. Marketing consultant for major health insurance resource websites and brokerage firms online. Some of the websites consultant and/or administrator,