Guaranteed Issue vs Simplified Issue Burial Insurance – Which is better?

Last Updated on: February 25th, 2025

Reviewed by Kyle Wilson

Guaranteed issue vs simplified issue burial insurance – Which is better

Selecting appropriate burial insurance requires customers to face decisions between guaranteed issue and simplified issue coverage types. The two insurance choices protect funeral costs yet each policy has separate entry standards and cost structures and financial levels. Knowledge about existing differences between insurance products helps users find suitable coverage. This guide explores the comparison between guaranteed issue vs simplified issue Burial Insurance to assist users in their decision-making.

Get Free Quotes

Customized Options Await

Understanding Guaranteed Issue and Simplified Issue Burial Insurance

While seeking burial insurance options you will typically discover both guaranteed issue and simplified issue insurance policies. Both insurance types cover expenses for funerals and end-of-life needs however they operate differently through their issuance methods and their pricing systems and the respective approval paths. Understanding these policies’ different features will help you select one that matches your financial situation and health needs.

What Is Guaranteed Issue Burial Insurance?

Guaranteed issue burial insurance represents a policy system which provides coverage without needing medical examinations and free from health questions during approval. Insurance approval comes automatically to anyone who satisfies the age criteria established by their insurer. People with severe medical circumstances who cannot obtain standard life insurance coverage find this particular policy to be their best option. Insureds must pay higher premiums together with facing delayed coverage benefits under this insurance product.

What Is Simplified Issue Burial Insurance?

Simplified issue burial insurance forces applicants to respond to short health questions instead of medical examinations. Simplified issue policies give their beneficiaries cheaper coverage than guaranteed issue insurance while granting instant coverage to eligible applicants who qualify under their health criteria. Burial insurance stands as a suitable option when purchasers maintain reasonable health status but seek to circumvent both higher prices and policy initiation delays of guaranteed issue insurance.

Key Differences Between Guaranteed Issue and Simplified Issue Burial Insurance

Both policies serve the same purpose but differ in eligibility, costs, and coverage terms. Below are the primary distinctions:

Medical Exam and Health Questions

Guaranteed Issue: This coverage does not need medical examinations or health questions.
Simplified Issue: Applicants do not need to undergo medical tests while they need to complete health-related questionnaire responses.

Eligibility and Approval Process

Guaranteed Issue: A guaranteed acceptance is granted to all applicants who lie between the insurer-established age limits.
Simplified Issue: The insurance application approval process requires candidates to pass health qualification examinations. The application process for this type of insurance takes less time than regular life insurance despite its criteria.

Coverage Amount and Benefits

Guaranteed Issue: Insurance policies under this coverage usually offer amounts between $5,000 to $25,000.
Simplified Issue: The policy provides wider protection boundaries as it extends up to $50,000 coverage beyond guaranteed issue plans.

Cost and Premium Differences

Guaranteed Issue: Insurance premiums rise when companies accept every applicant because they take on additional risks.
Simplified Issue: Insurance premiums become more affordable due to pre-approval risk evaluations conducted by insurers.

Waiting Periods and Payout Timing

Guaranteed Issue: The policy requires a waiting duration of 2 to 3 years before beneficiaries will receive the entire death benefit payment. The death benefit goes only to beneficiaries who lose the insured within a waiting period yet they receive premium refunds with added interest payments.
Simplified Issue: Health insurance with no waiting period enters effect right away for individuals who pass the application screening based on health questions.

Understanding these differences can help you select the right burial insurance policy that aligns with your health condition, budget, and coverage needs.

Which One Is Better for You?

The selection between guaranteed issue or simplified issue burial insurance depends on both your current health condition and financial resources as well as the required coverage amount. The multiple policies serve unique purposes because they suit different situations. Your personal situation needs to match one of these policies for you to make an informed decision.

Who Should Choose Guaranteed Issue Burial Insurance?

Guaranteed issue burial insurance is ideal for individuals who:

Have serious pre-existing health conditions that may disqualify them from other policies.
Want guaranteed approval without answering health-related questions.
Are comfortable with higher premiums and a waiting period of 2–3 years before full benefits are available.
Need a small coverage amount to help with funeral and burial expenses.

Who Should Choose Simplified Issue Burial Insurance?

Simplified issue burial insurance is best for individuals who:

Are in relatively good health and can answer basic health questions.
Want a more affordable policy with higher coverage limits than guaranteed issue plans.
Prefer immediate coverage with no waiting period if they qualify.
Are looking for flexibility in their burial insurance options.

Factors to Consider When Selecting a Policy

When deciding between these two types of burial insurance, consider the following:

Your Health Condition – If you have serious medical conditions, a guaranteed issue policy may be your only option.
Premium Costs – Simplified issue policies usually have lower premiums than guaranteed issue policies.
Waiting Period – If you need immediate coverage, a simplified issue policy is preferable, but if you don’t qualify, a guaranteed issue policy is still an option.
Coverage Amount – Consider how much coverage you need to cover funeral expenses and other final costs.
Budget and Affordability – Ensure the policy you choose fits within your financial plan and won’t become a burden later on.

Pros and Cons of Guaranteed Issue vs Simplified Issue Burial Insurance

Both types of burial insurance have their advantages and disadvantages. Understanding these can help you make an informed choice based on your specific needs.

Benefits of Guaranteed Issue Burial Insurance

Guaranteed approval regardless of health condition.
No medical exams or health questions required.
Provides peace of mind for individuals with serious health concerns.
Can help cover funeral and burial costs even if other insurance options are unavailable.

Benefits of Simplified Issue Burial Insurance

More affordable premiums compared to guaranteed issue policies.
Higher coverage limits available.
Immediate coverage is possible for those who qualify.
Suitable for individuals in moderate to good health who want burial insurance with fewer restrictions.

Drawbacks of Guaranteed Issue Policies

Higher premium costs due to the lack of medical underwriting.
Waiting period of 2–3 years before full benefits are paid.
Lower coverage amounts than simplified issue policies.

Drawbacks of Simplified Issue Policies

Not guaranteed approval—applicants must answer health-related questions.
Some health conditions may disqualify applicants from immediate coverage.
May require more effort in comparing plans and qualifying based on health history.

Conclusion

The selection between guaranteed issue and simplified issue burial insurance depends on both your health status and your financial ability and your desired insurance coverage. The approval process for guaranteed issue policies guarantees anyone with serious health conditions despite their medical history while these plans have increased premiums as well as waiting periods before benefits activate. Healthy applicants are best suited for simplified issue policies because they provide cheaper policies with higher coverage amounts and immediate cash benefits.

Understanding the key differences and weighing the pros and cons of each option can help you select the best burial insurance policy for your specific needs.

FAQs

What is the main difference between guaranteed issue and simplified issue burial insurance?

The primary distinction exists within the eligibility standards. Guaranteed issue burial insurance provides instant acceptance and does not need medical exams or health evaluations. Applicants seeking burial insurance through simplified issue policies must respond to fundamental health inquiries.

Which option is more affordable?

The cost of burial insurance through simplified issue policies tends to be more affordable compared to premiums of guaranteed issue policies. Insurers can charge lower monthly premiums when they accept applicants whose health condition puts them at reduced risk.

Can I qualify for burial insurance if I have a serious health condition?

Burial insurance gives eligibility to people with severe health conditions to secure coverage. Guaranteed issue burial insurance provides an opportunity for coverage to persons who experience rejection from other insurance carriers because it lacks medical screenings or health-related inquiries.

Iqra Malik

Senior Writer & Licensed Life Insurance Agent

Iqra is a dynamic and insightful senior writer with a passion for life insurance and financial planning. With over 8 years of hands-on experience in the insurance industry, Iqra has earned a reputation for delivering clear, actionable advice that empowers individuals to make informed decisions about their financial future. At Burial Senior Insurance, she not only excels as a licensed insurance agent but also as a trusted guide who has successfully advised over +1500 clients, helping them navigate the often complex world of life insurance and annuities. Her articles have been featured in top-tier financial publications, making her a respected voice in the industry.