The world of life insurance can get confusing. There are all these different terminologies that can be too overwhelming to understand. We are here to help simplify everything. In today’s article, we will talk about Simplified Issue Life Insurance.
What is Simplified Issue Life Insurance?
Simplified Issue Life Insurance makes it easier for everyone to get life insurance. There’s no medical exams involved. It allows everyone to get life insurance quickly.
You can apply for this type of life insurance policy and get approved without undergoing a medical exam. You only need to answer some health questions.
The approval time is also shorter compared to other types of insurance policies. Usually, it only takes a few days.
When it comes to death benefits, simplified issue life insurance offers lower benefits compared to other policies. It can be as small as $5,000, or as big as $100,000, depending on the term you choose. It also depends on the insurance company you choose.
Policy owners may also have a choice of several optional riders. But again, it depends on the insurance policy.
It should also be noted that premiums for this type of life insurance are higher. This is how insurance companies mitigate the risk of not doing a medical exam.
Simplified Life Insurance Benefits
Below are some of the benefits you can get from this type of life insurance policy:
- No medical exam – if you’re trying to avoid going to the doctors, or if you’re concerned about the discovery of any unknown health condition, then this may be a benefit for you.
- Faster approval time – with other types of life insurance policies, you may wait up to 8 weeks or more. Here, it only takes a matter of days.
- Temporary coverage – simplified life insurance offers coverage when you’re in between jobs.
Simplified Life Insurance Disadvantages
- Higher premiums – you may be required to pay higher premiums for this type of policy.
- Lower death benefits – as we mentioned above, the death benefits for this policy are lower than other policies.
