What Is Simplified Issue Term Life Insurance 

What Is Simplified Issue Term Life Insurance

Life insurance often requires you to follow through with several standard procedures before you get yourself a policy that properly covers you and meets all your needs. This includes taking a medical exam among many other things, the result is that it costs you a considerable amount of time. Well. There is an alternative if you are pressed for time, by taking a simplified issue term life insurance. One of the reasons why this alternative is suitable is that it does not require you to take on any medical examination before signing up.

What to Know About Simplified Issue Term Policies

When applying for a simplified issue term life insurance you do not need to take a medical exam, however you need to answer a few questions no matter what type of policy you get, even life insurance with no medical exam policies. Some of these will be to gain some information on your health history such as any diagnosis or your current weight. Most of these questions are on a questionnaire and may be up to 20 or more questions. The answers that you provide are able to guide the insurer whether to accept you in their policy or not. While many of the people who apply to simplified life insurance are accepted, some are not, for varying reasons that depend on the circumstance and which company is providing the policy.

Advantages of Simplified Issue Term Coverage

Maybe you are wondering if this is the correct route to go. One of the advantages of buying a simplified term insurance policy, or a term life insurance policy with no medical exam as it is also called, is that without having to go through the medical exam portion of the underwriting, it typically is a faster application period. The fast response to your application is another key factor that makes this policy stand out. You can be able to get an insurance policy in a matter of a few days or weeks. On the other hand a normal insurance policy could possibly take months to have you covered.

When compared to a guaranteed issue life insurance policy, simplified issue term life insurance is also less costly. This ensures you save some money for other expenses. Another good thing about a simplified term life insurance policy is that the death benefit, also known as the full face value or the payout, is instantly accessible from the moment you get coverage.

Flexible Payment Options

With a simplified insurance policy, you can be able to pay on an annually, semi-annually, monthly or quarterly basis. This varies across the different insurers. It is however an indication of how flexible these policies can be. At most times, you have a fixed premium throughout your policy coverage if you are able to pay on time.

What Is Simplified Issue Term Life Insurance

Possible Drawbacks for Simplified Issue Term Policies

Limited Coverage With a simplified issue policy, there is a cap on the amount that you are insured for. That mostly ranges from $250,000 to $500,000. There are also few features on your policy and extra coverage that may require you to fork out additional amounts of money compared to policies that go through a medical exam.
Health Information If you are able to get a glimpse of the amount that the usual life insurance holders pay in premiums, you may realize that they are lower compared to simplified issue life insurance policy premiums. One of the reasons for this is due to the reason that without a clear picture of your health, you bring more risk to the business and therefore more risk leads to more premium. This is in comparison to the traditional life insurance policy where there is comprehensive medical information about the policy holder. This gives the insurer a clear idea on who they are covering.
Age Factor The older you get, the more health issues you are likely to experience. Therefore, a young policy holder may likely pay less money in terms of premiums when compared to an older policy holder. Being young, you are more likely healthy and strong, but when you age you become a weaker person and illnesses may take a toll on you in a bigger way compared to your younger self.

Talk to an Expert

Still unsure if simplified term life insurance is the right choice for you? Get a quote and talk to an expert life insurance agent today. Not only can they help determine if this is the right policy type for you, but they can also help shop for the best policy among all the available providers.

Disclaimer: TermLifeInsuranceUSA.com is not a licensed insurance agency or broker. The content of this website is for informational and comparative purposes only and is not intended to take the place of professional advice from a licensed insurance agent. TermLifeInsuranceUSA.com recommends that all consumers consult with a licensed insurance agent before purchasing any insurance policy.

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