When applying for life insurance coverage, not everyone can qualify easily. For one reason or another, some applicants may be turned down for the policy that they need. This could be due to an adverse health condition, or it may be because they participate in hobbies which are actually considered to be dangerous or risky by the life insurer.
In other cases, an applicant may be perfectly healthy, however, they just have a fear of medical devices such as needles and they do not wish to participate in the medical exam that is required in order to qualify for most traditionally underwritten life insurance policies.
For these individuals, there is good news about coverage. With simplified issue term life insurance, you can apply for coverage still offering a wide array of options – yet with no medical examination and just a few questions on the application to answer. So no matter if you’re looking for yourself or a life insurance policy for your parents, we can answer your questions and help you get the coverage you deserve.
Every year, we talk to a lot of people who can’t be accepted or have been declined. A lot of these clients are worried they can’t protect their families. This article is going to show you the truth. Regardless of your past life insurance experiences, it’s possible to get coverage.
What Is Simplified Issue Term Life Insurance?
Simplified issue is a type of life insurance coverage that does not require the applicant to take a medical examination as a part of the underwriting process. These policies will typically also ask very few questions on the application for coverage. We also have options like HSBC term life insurance. If you have questions, we have answers!
In many cases, the face amount on a simplified issue policy will be less than that of a traditionally issued plan – oftentimes in the range of $25,000 to $150,000 – although the amounts can be more.
With this type of life application, the questions that are included in the application for coverage will typically only include ones such as the following:
- Have you had a diagnosis is the past two years of a serious illness such as diabetes or cancer?
- Do you currently have a disability that requires a wheelchair or the confinement to a facility such as a skilled nursing home?
- Do you currently have heart disease, HIV, kidney disease, or cognitive impairment?
- Have you ever had a stroke?
In addition, the insurance company may check your information against that in a database such as that contained in the Medical Information Bureau so that it can determine whether or not there is any additional data about your medical history, as well as whether or not you may have applied for other types of coverage. Other data may also be checked, such as your driving record and your pharmaceutical information in order to determine any medications that you may be taking for certain health conditions.
While simplified issue life insurance can be offered as a term policy – meaning that it comes as only pure death benefit protection – these types of policies can also be issued as permanent life insurance as well. A permanent policy will provide the policyholder with a death benefit, along with a cash value policy component where the cash is allowed to grow on a tax-deferred basis.
Considerations When Purchasing Insurance Coverage
When purchasing a simplified issue policy, there are several things to consider. First, these types of policies are, as the name implies, simple to apply for. Because they don’t require underwriting, they can often be issued within a relatively short period – for example, days as versus weeks, or longer, with traditional coverage.
Because of the lack of underwriting, however, the premiums for these plans are typically higher than those of a comparable plan that goes through the traditional underwriting channels. This is because insurance companies are aware that the individuals who apply for simplified issue policies may often have health issues – which could pose more risk of claim to the insurer.
Because these plans are much more expensive, most applicants should also use these plans as the last resort. You should only use these if you have recently been denied for a medically underwritten plan that could save you money.
In addition, a simplified life insurance policy may also not have some of the additional riders available that a more traditional term policy can offer. For example, an insured may not be able to add additional coverage for disability, for accidental death and dismemberment, or for children’s coverage. If you’re looking to add additional riders through your life insurance policy, you’ll need to qualify for a traditional insurance plan that will give you the ability to add as many riders possible.
Will these plans be enough? We already showed you the limitations of these plans. How do you know if it’s enough coverage?
Well, do you have debts? Those debts would go to your family. You want them to have money to pay those bills. If you have a large amount of debt, you need a large insurance policy.
If you have family members who need your paycheck to get by every month, a simplified issue policy probably won’t do it. You should always make sure your family will have the money they need.
More than likely, one of these won’t give you enough coverage. You can buy two policies to beef up your insurance protection, or you can consider buying a more traditional plan.
Who Should Consider This Type of Policy?
The purchase of a “traditional” term life insurance policy may not be the answer for everyone. Those who may be a good applicant for a no exam policy may include someone who has adverse health issues and cannot qualify for a fully underwritten policy or who has been declined for coverage before. Because life insurance is so important, nobody should go without the protection that they need. If you have severe health complications, these no exam policies could be an excellent option.
Other potential candidates can include those who take part in more risky occupations and / or hobbies, as well as those who just simply cannot or do not wish to take part in a medical examination as a part of the underwriting process.
A lot of people who buy simplified plans are those who’ve been declined for life insurance in the past. These are the people who have been rejected for a traditional plan, and they assume they have nowhere else to go. In some cases, this is true, in others, it isn’t.
Other applicants buy one of these plans to save time. With a simplified policy, you don’t have to jump through all of the hoops like you do with a normal policy. You can get approved for a policy in a matter of hours. Now, that’s fast!
Where To Find The Best Rates On Premiums
When looking for the best premium rates, it is often best to work with an agency which has access to numerous insurance carriers. In which they will be able to directly compare the policies and the quotes in order to determine which plan will be the very best one for you. We offer a wide range of services, such as AICPA life insurance policies, return of premium term life insurance or even million dollar life insurance, if that is something you are in need of.
In doing so, we can help. We work with all the top companies that issue no exam policies, and we will provide you the important information you need quickly and conveniently – right from your home computer – without the need to meet an insurance agent in person. When you’re ready to begin the process, simply fill in the necessary information on the above form.
There are so very many different insurance companies that off no exam life insurance. If you were to have to go through this process without the assistance of an independent insurance agent, you could spend countless days calling the different companies to receive quotes. We know that your time is precious, allow us to do the work for you to save you not only time but also money on your life insurance coverage.
Our agents can help give you the best chance to give you affordable life insurance coverage for your family. Not having life insurance is one of the worst mistakes that you can make for you and your family. If you didn’t have life insurance, your loved ones would be left with massive amounts of debt and no resources to pay for those bills. This can make the already difficult situation a thousand times worse. On top of the emotional stress, they will also have financial burdens to deal with.
Because you can’t predict the future, you simply can’t know what could happen or when something tragic might occur. Don’t delay longer to give your family the financial protection that they deserve.
Should you have any questions at all about how to qualify for life insurance coverage or about obtaining premium rates for these plans, please feel free to contact us directly by phone. We can be reached toll-free by calling 334-380-4188. Our experts will be happy to answer any questions or concerns that you may have. We want to ensure that you have all of the information that you need before moving forward with this important purchase. So contact us today – we’re here to help.