The Basics of Simplified Issue Insurance
Simplified issue life insurance is a type of “no exam” policy that allows individuals to obtain coverage without undergoing a medical exam, which is often required for traditional life insurance policies. This type of insurance is designed to provide a limited amount of coverage quickly, making it an attractive option for individuals who need life insurance but may not have the time or desire to undergo a medical exam.
Therefore, the application process is significantly shortened, so if you need life insurance but don’t want to wait weeks or months to be approved, a simplified issue policy may be a good option for you
The coverage amount of money paid out upon the policyholder’s death, known as the death benefit, can range from $5,000 to over $100,000 for simplified issue life insurance policies. The specific amount of the death benefit will depend on the policy and the coverage selected by the policyholder. The insurer may charge higher premiums to compensate for the lack of medical underwriting, so these policies are often more expensive than term-life or whole life policy. Waiving a medical exam means that underlying health problems can’t be included.
Average payment rates or monthly premiums for this 10000$ simplified issue policy may go up to approximately 28$ a month.
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.