The application process can be fairly straightforward for some people. For others, it may not be so easy. If you have any adverse health condition – or even if you have a fear of needles – you may be leery of undergoing the medical exam that is required by most life insurers for their traditionally underwritten policies.
If you still need coverage in order to protect your loved ones, there is good news about obtaining a policy. You could go the route of applying for a simplified universal plan.
There are a lot of different life insurance policies that you can choose from to give your family the protection that they need. There are a lot of different insurance policies that you can pick from, and it’s vital that you make the best decision for protection your family.
One of the common types of life insurance is a simplified issue universal life insurance plan, which is a great safety new for your family. But, there are a several advantages to these kind of plans.
What Is Simplified Issue Universal Life Insurance?
Simplified issue life insurance is a relatively new type of policy that does not require the applicant to take a medical examination as a part of the overall underwriting process. These types of insurance policies will also ask very few questions on the application for coverage as well.
Unlike simplified issue term life insurance which offers pure death benefit only, a simplified universal life (UL) policy will provide the policyholder with both death benefit protection, as well as a cash value component. The cash within the policy is allowed to grow on a tax-deferred basis, meaning that no tax is due on the growth of the cash until the time that it is withdrawn. This allows the ability for the cash to grow and compound exponentially over time.
Just like other types of permanent policies, the policy holder can also have an additional amount of flexibility over, for example, whole life insurance because UL offers the ability to move funds between the death benefit and the cash value component of the policy.
Typically, the face amount on a simplified policy will be lower than that of a more “traditionally” issued plan. This means that the simplified issue policies are often in the range of $25,000 to $150,000 – however, in some cases, the amounts can be higher.
It is possible that the insurance underwriters may also check your personal information against that in a database such as the Medical Information Bureau (MIB). This can provide them with additional details such as your medical history, as well as whether or not you have recently applied for other types of coverage.
Additional data may also be checked, such as your driving record and your pharmaceutical information in order to tell if you have been prescribed certain medications for various types of health conditions.
Once your information has been collected by the insurance company, a decision can be made regarding your coverage. Unlike the more traditionally underwritten policies that require applicants to undergo a medical exam – and where it can take weeks, or even months, to obtain a coverage decision – a decision can typically be made within just days, or even hours, with a simplified issue applicant. In some cases, applicants could even be approved as quickly as following a short telephone interview with an insurance underwriter.
Considerations When Buying A Policy
For those who are purchasing a simplified UL policy, there are some things that should be considered prior to moving forward. First, because these policies don’t require in-depth underwriting, they are considered to be riskier for the insurance company.
Therefore, because the applicants for these types of policies are oftentimes those who have adverse health conditions – and could pose the risk of claim to the insurer – the premiums are typically much higher than those of a comparable traditionally underwritten policy. However, because this is often the only type of coverage that some applicants can obtain, it can still be a good solution.
Who Should Consider A Simplified Issue Policy?
As traditional coverage may not be attainable for everyone, a no medical exam policy may be the answer for several types of applicants. First, those who have pre-existing health conditions and cannot qualify for medically underwritten policies should likely turn to this coverage for their life insurance protection needs. If you are in search of life insurance for your parents or maybe even AICPA life insurance, there are options for you as well.
Likewise, individuals who participate in risky or dangerous occupations may also want to consider a simplified issue policy, as they, too, may not be able to qualify for a more traditional type of coverage.
If you have a fear of needles and you do not wish to participate in the paramedical exam that is required for most types of qualification, this would also be a good plan. Keep in mind that there will be a large difference in the premium price when compared to a traditional UL plan.
Where To Find The Best Rates
When shopping for simplified issue coverage, it is typically best to work with a company that has access to more than just one insurer. This way, you can more directly compare in an unbiased manner the policies’ benefits and the premium quotes.
If you’re ready to start shopping for coverage, we can help. We work with many of the best life insurance carriers in the market place today, and we can get you all of the important information that you need quickly and easily. To get the process started, just simply fill out the quote form on this page.
Should you have any additional questions, please contact us directly by calling, toll-free, 334-380-4188. Our experts will be happy to walk you through the process. So, give us a call now. We’re here to help.
When you’re looking to purchase life insurance, it can be a long and difficult process trying to find the policy that works best for you and your family, but it doesn’t have to but a frustrating process. Our independent insurance agents can make the whole process as quick and easy as possible.
Our agents don’t represent one single insurance company, instead we can give you quotes from dozens of insurance companies across the United States. We can bring all of the lowest quotes directly to you, without having to call dozens of insurance companies. Your time is valuable, don’t waste it calling agents. Get the insurance protection that your family needs, don’t wait any longer.