Traditional term life or whole life insurance policies aren’t approved fast enough for some people. The long waiting period can be an issue if you’re older or sick, and wish to quickly avail critical financial protection for your dear ones and cover end-of-life expenses. Simplified life insurance would be your best bet in this scenario. It has a brief underwriting process without too many health questions or a medical exam, and you might get immediate approval.
What is Simplified Issue Life Insurance?
Simplified issue life insurance is a policy that provides quick coverage with a few health questions and no medical exam. Your answers to the questions influence the decision to approve or deny coverage. The underwriting process is much shorter, making instant approval possible in some cases.
What is the Purpose of Simplified Issue Insurance?
With traditionally-written whole or term life insurance, underwriters gather a lot of information about the applicant before approving. You may have to answer lengthy questionnaires with dozens of questions about your physical and mental health, occupation, family medical history, and more. Then, you have to undergo a medical exam. The underwriting process can take weeks or months. However, insurers introduced simplified issue life insurance to provide a small amount of financial protection (with a death benefit) in days instead of weeks or months. You don’t need a full medical exam for this.
Based on coverage purchased, beneficiaries of simplified issue life insurance can receive from $5,000 to above $100,000. With the shorter process comes fast coverage, but avoiding a medical exam makes you a higher-risk policyholder. As a result, your premium will be higher, too.
Features to Consider
Once you’ve applied for a simplified issue life policy, you might get your coverage immediately after approval. Underwriters will determine how much of a risk you pose based on your answers to the few questions asked. This quick assessment will help work out your policy’s premium and death benefit.
The specifics of how simplified life insurance works can vary by insurer. For example, the coverage may be available as term life or permanent life policy. With some carriers, you can increase the financial protection for your family by adding riders. Others may not let you expand the coverage.
Who Should Purchase a Simplified Issue Life Policy?
Many adults with a family can benefit from the fast-tracked coverage of simplified issue life insurance. The policy can be useful in numerous scenarios, including:
- You need near-instant life insurance coverage
- You need life insurance but wish to avoid a medical exam
- The court ordered you to get life insurance right away to protect your children
- To use the policy as collateral for a loan (if your lender will accept it)
- Your condition possibly disqualifies you from traditional life insurance policies
Benefits of Simplified Issue Life Insurance
These life policies offer several advantages, including:
- They don’t require a medical exam
- Your family is protected as soon as you’re approved, and a premium is set
- The coverage amount for some policies is often higher than amounts available with guaranteed issue policies
The global pandemic has prompted many people to review their financial preparedness for uncertainty. Are you looking to safeguard your loved ones’ financial future in case something unfortunate happens to you? Contact us today at Donald Weiss Insurance Services to obtain a simplified issue life insurance policy. We can help you get customized coverage based on your budget and needs.
