Simplified Issue Life Insurance
Life insurance agents are noticing an increase in the number of families and individuals requesting no medical exam life insurance policies. It seems that the medical exam necessary for most traditional life insurance policies is just too much of a hassle or inconvenience. Some people are traveling and just need coverage quickly. More and more families who would not have considered life insurance before are looking at this new type of “non-med” policy.
Sometimes referred to as “no exam life insurance” or “no medical exam life insurance,” simplified issue life insurance is one of the easiest policies to get. There are typically no needles, urinalysis, medical exams or other tests needed with this type of life insurance policy. There will be a few basic health questions. Information for these policies is usually limited and may only require information like a history of heart disease, cancer or recent hospitalizations. With simplified issue life insurance, some people with Hepatitis may even be eligible for coverage. (see link below)
Approved for Life Insurance in 24 Hours
While typically costing a little bit more, simplified issue policies are convenient and practical, especially for those who need life insurance quickly with no waiting period or processing delays. Underwriting may typically require four to eight weeks for completion on fully underwritten policies. Death benefits for non-medical policies range from $5,000 all the way up to $350,000. In some cases, no paperwork is necessary, forms can be signed electronically with the application being processed and underwritten quickly, sometimes within 24 hours.
Shorter Application, Less Information Required
Unlike typical life insurance policy applications which can be several pages in length and have hundreds of questions, most simplified issue life policies are just a page or two long and only require some key personal information. A private industry organization known as the MIB Group keeps track of all information provided by people on any previous life, health, disability or long-term care insurance applications. Underwriters can access this information database and use it to make quick policy decisions.
Can Anyone Get This Type of Coverage?
The simple answer is no. While simplified issue life insurance is a great solution for some people in certain situations, it is not true that just anyone can obtain this type of coverage. This policy is for those people who are in relatively good health and don’t have any major issues recorded with any federal or state government database, pharmacy records or with the Medical Information Bureau (MIB Group). Dangerous or hazardous hobbies may also be a declination as well.
Those who would be considered high-risk are typically declined for coverage initially but may qualify for what is called a “graded death benefit.” This type of coverage offers a waiting period before any benefits begin. Typically, these type of high risk policies may be very expensive.
Who Should Consider Simplified Issue Life Insurance?
For most people, getting life insurance means answering a bunch of medical and health questions, getting that dreaded medical exam, waiting for the test results and then wondering if anything in those test results is going to cause an insurance company to decline your coverage.
If you’re the type of person who doesn’t see a doctor on a regular, yearly basis then this may be the right policy for you. You may feel like you’re in the best condition ever but it has been more than a few years since you have had any blood work done, monitored your blood pressure, checked triglyceride levels or even checked your cholesterol.
If you apply for a typical life insurance policy, you’re going to have to get checked out and tested thoroughly. If anything irregular shows up in your test results, the underwriters may decline to cover you. Before you do that and find a potential problem, why not secure a “no medical exam” simplified life insurance policy first? If something does show up in the lab work, at least you’ll have life insurance coverage for your family.
The Fully Underwritten versus Simplified Life
Most simplified issue policies will only provide a maximum payout of $350,000. The premiums are relatively close in price when compared to standard life insurance policies, however, fully underwritten policies will go up to five million dollars in coverage.
Simplified issue life insurance is not right for those people in a known high-risk situation. People who provide false information on an application just to get insurance coverage may find themselves with no coverage at all. Industry experts warn that information submitted on applications which is found to be inconsistent with information submitted on previous insurance applications will likely lead to disqualification for coverage.
Consider this easily attainable simplified issue life insurance policy if you need life insurance coverage now to protect your family and you just can’t wait weeks or months for a life insurance policy to be underwritten for coverage.
Hepatitis coverage link: http://www.hcvadvocate.org/hepatitis/hepC/Life_Insurance_Basics.html