What is life Insurance without a two year waiting period? It means that your full life insurance coverage starts form the first day you are insured by the insurance company. Most life insurance policy provide you with 100% death benefit coverage from the first day you are insured by your policy. However, guaranteed issue life insurance plans usually come with a graded death benefit the first 2 or 3 years you are insured. That's how they can accept people with a health problem, and guaranteed your approval for coverage if you meet the age requirements for acceptance.