Simplified Issue Life Insurance – For those seeking financial security through life insurance without the hassle of a lengthy underwriting process, simplified issue life insurance offers a quick and convenient solution.
This type of policy is specifically designed for individuals with health concerns or those who prefer a faster application process.
It usually requires answering just a few questions about medical history and health status, eliminating the need for extensive medical exams.
Simplified issue Life insurance has become a popular choice, especially for individuals who face challenges obtaining coverage through traditional methods.
In this article, we’ll explore the key features of this life insurance, along with its advantages and disadvantages, to help you determine if it’s the right option for your needs.
What Is Simplified Issue Life Insurance?
As the name implies, simplified issue life insurance is a simple type of policy that features quick and concise underwriting procedures.
While most traditional life insurance policies have lengthy underwriting processes, that of this life insurance is simple and concise.
The primary aim of this insurance is to streamline the coverage process for policyholders who find it difficult to obtain coverage from several insurers.
Nevertheless, it does not change the fact that questions about the health conditions of the applicant will not be asked.
The only difference is that this life insurance asks very few questions as regards the health of the applicant.
Pros of Simplified Issue Life Insurance
One of the quickest ways to get life insurance is through a simplified issue. In addition to the ease and convenience it offers, here are some of the advantages of this life insurance:
Short Application Process
Applying for a this life insurance will not take much of your time, unlike a standard life insurance policy where you have to flip through so many pages to apply for coverage. The application process for a simplified issue is short and straightforward.
Quick Approval
Implied issue life insurance makes it easier for applicants who seek coverage to avoid lengthy underwriting processes. If you applied for this life insurance, the coverage can get approved within minutes.
Unlike the traditional underwriting process where you have to wait for weeks before coverage is approved.
No Medical Exam Required
Another outstanding feature of this insurance is that it does not require a medical exam. For those who are worried about their health problem being revealed through a medical exam, purchasing this life insurance is an ideal option.
Insurers allow people to apply for a this life insurance policy; the only thing required is answers to a few questions about your health.
Cons of Simplified Issue Life Insurance
While this insurance is undoubtedly one of the easiest ways to get life insurance coverage, there are disadvantages attached. Let us consider some of the downsides of this type of policy:
Higher Premiums
This life insurance coverage is often pricey due to the fact that a medical exam was not conducted. Most insurance companies are able to assess how safe or risky it is to insure a person through a medical exam.
Without a medical exam, it is difficult for insurers to do a risk assessment, ultimately leading to higher premiums.
Limited Coverage
As a result of not disclosing vital information about your health and medical history, the coverage you will be offered will most likely not be enough for your needs. For those who seek a one million dollar life insurance coverage, it is advisable to consider other alternatives.
Graded Death Benefits
This is another disadvantage attached to purchasing this insurance. Certain simplified issue policies require that you have the policy for at least two years prior to your death in order for your beneficiaries to receive the entire death benefit.
In the event that a policyholder passes away within two years of obtaining the insurance, the beneficiaries will normally receive a return of the premiums paid on the policy.
Who Needs This Insurance?
This life insurance could be an ideal option for certain types of people, such as
- Individuals with serious health concerns.
- Busy professionals seeking quick coverage.
- Those who have difficulty obtaining traditional coverage.
- Those who want to avoid a medical exam.
- Seniors wanting to avoid a lengthy application process.
- People seeking short-term financial protection.
- Those looking for a straightforward application process.
If you fall under any of the categories of people mentioned above, then getting a life insurance policy through simplified issue makes so much sense.
Alternatives
This type of life insurance may not be the right fit for everyone; hence the need to consider other alternatives to explore. If you realize that this insurance is not the best option for you, consider the following alternatives:
Guaranteed Issue Life Insurance
When applying for guaranteed issue life insurance, there is no medical exam required, similar to simplified issue life insurance. When compared to simplified issue life insurance, the application process is even more straightforward. If you are concerned about being approved for coverage, this type of insurance assures quick approval.
Final Expense Life Insurance
Typically, final expense insurance is designed to cover end-of-life expenses of the policyholder. The death benefit on the policy will be sent to your beneficiaries and used to cover outstanding medical bills and burial costs. Compared to simplified issue life insurance, final expense is less expensive.
Frequently Asked Questions
Is It Worth It?
The ease and convenience that comes with this life insurance makes it sought after by so many people. Whether or not the policy is worth it depends on your unique situation.
If you wish to avoid a medical exam and a lengthy life insurance application process, then a simplified issue is an ideal option.
How Much Does Simplified Issue Life Insurance Cost?
According to Forbes Advisor, the average cost of a 10-year simplified issue policy of $100,000 is around $28 per month.
Nevertheless, the cost of coverage largely depends on your age, health, coverage amount, and the length of coverage you want.
The price also varies by insurer; you can get the best rate by shopping around and comparing quotes.
Who Can Apply for Simplified Issue Life Insurance?
Anyone can apply for this life insurance. It, however, mostly appeals to individuals with health issues and seniors who wish to avoid lengthy application processes.