Life insurance is an important way to protect your dependents in case of an unexpected death. Policy proceeds can be used to -

Pay debts and financial obligations;
Pay for final expenses such as funeral and burial;
Pay for daily bill such as pay off mortgage;
Protection for a business

Additionally, some life insurance policies can be a tax-deferred way to transfer wealth between generations.

There are three main types of life insurance policies -

Term life - are the most common policies. You pay premiums only for the period of the policy, normally 10 or 20 years. The policy would pay only if the insured dies during the term of the policy. Because the great majority of people survive their term life policy, these policies are normally significantly cheaper than whole life policies

Whole life - are normally more expensive than term life, but would pay benefits if the insured dies at an age lower than the age in the policy, normally 100 or 120 years. In addition to the original face amount, these policies accumulate cash value. Depending on how the policy is designed, these policies can be used as a saving vehicle, and as a way to transfer wealth between generations.

Universal life - a type of permanent insurance in which excess premiums above the price of insurance are being saved in the saving component of the policy. These policies are often designed in a fairly complex way, and can utilize fixed or variable premiums, and different ways to affect the saving component of the policy.

Normally the process of obtaining any type of life insurance involves going through a thorough medical questionnaire, and a medical exam. Seniors or individuals with certain health conditions may be refused for coverage by the insurer. These individuals have the option to obtain guaranteed issue life insurance, a policy that is issued regardless of medical condition. These policies are normally whole life, but some term life policies are also available by some insurance companies.

Benefits of guaranteed issue policies

Shorter application process than normal
Cover people that would not be able to obtain a life insurance policy otherwise, allowing them to provide the protection they want for their loved ones

Limitation of guaranteed issue policies

High premiums - these policies are more expensive than standard policies.
Graded benefits - in the first 2-3 years of the policy, only some of the benefits are paid, not the entire face amount.
Low face value - most of these policies can be purchased only up to a value of $50,000, or sometimes even lower.
Age limitation - normally cannot be purchased above age 80 or 85, depending on the insurance carrier.

In summary, if you cannot obtain life insurance coverage, and need to protect your loved ones, consider obtaining a guaranteed issue life insurance policy. Because there are a huge variety of products available, you have to make sure you understand the differences between them, and the limitations of each type of policy. It is highly recommended to work with a reliable independent insurance agent, or a financial adviser. Be sure to work with reputable insurance companies.