What Does Guaranteed Issue Mean In Life Insurance? 
To add to the above responses , guaranteed issue policies are , in essence , a `` last resort '' type of measure for buying life insurance as they generally feature some of the highest rates in the market . The medical histories for individuals who purchase these have conditions that make them uninsurable for traditionally underwritten programs , such as cancer -LRB- when current in the body and treatment not yet completed -RRB- . Also , these programs are limited to small amounts of life insurance - generally a maximum death benefit of $ 25,000 under a single policy with most companies . The structure of a `` graded '' death benefit mentioned above is generally a return of premiums paid into the program if death occurs in the first 2 years , unless death is accidental -LRB- in which the full benefit would be payable -RRB- - the full benefit is payable beginning in year 3 of the policy . 