The Purpose of Simplified Issue Insurance
Simplified issue life insurance intends to provide a restricted amount of life insurance quickly, without the 1-2 month typical wait for common policies that require a medical exam. With this type of policy, you’re not required to participate in a full medical exam. So, you can obtain coverage in days rather than weeks or months.
The death benefit payout can vary from $5,000 to over $100,000. The premiums could be higher than a usual term life or even whole life policy. Waiving a medical exam means that underlying health problems can’t be included. Therefore, risk is considered higher, and the premium will be higher, too.
How It Works
This type of insurance is equipped to provide life insurance quickly. Most applicants can expect to have valid insurance when their application is accepted.
Instead of taking a medical exam, you must answer a short health questionnaire. This inquiry allows the insurer to finish a modified risk assessment and dictate a premium and death benefit.
Some carriers provide this type of insurance as either a term life or a permanent life policy. You may or may not be permitted to add riders to your policy to enhance coverage or death benefits.