Kategoriler


For People Who Didn’t Plan Very Well

Simplified Issue Life Insurance: For People Who Didn
Paylaş
 


There are many different life insurance options to choose from. It can get very overwhelming and complex. Luckily, simplified issue life insurance is just that. Simplified.

This article will discuss in more detailed what this straightforward type of life insurance is, why you would get it, and how to get it.



What Is Simplified Issue Life Insurance?

Simplified issue life insurance is a life insurance policy where you can be approved for with minimal health questions. You will also get to bypass a medical exam where bloodwork is required.

This type of life insurance is typically geared towards older people or people who have health issues, but also to people who need to obtain life insurance right away.

People who hate getting a medical exam, which requires sampling urine as well as drawing blood may prefer this type of simplified insurance. But simplified issue life insurance is usually for those who are looking for a last minute option because they did not properly plan ahead or were surprised by a life issue.

Simplified Life Insurance Is Fast



Simplified life is designed to provide a limited amount of life insurance quickly, usually in days, instead of months. When I got my $1 million term life insurance policy, I had to get an medical exam which took about three weeks to set up. Then I had to wait another three weeks before I got my results.

With a simplified issue life insurance policy, you should be able to get life insurance coverage in under two weeks.

Unlike a typical term life insurance policy or a permanent life insurance policy, a simplified life insurance policy usually has lower death benefit amounts. We’re talking between $5,000 – $200,000.

However, a simplified issue policy is usually higher than a guaranteed issue life insurance policy. A guaranteed issue life insurance policy really is one’s last option.



The premiums for this type of life insurance policy will be higher than a typical term life or permanent life insurance policy.

When you forego a medical exam, the life insurance company assumes more risk. With a higher risk you are in poorer health, premiums must be raised accordingly for the life insurance company to stay in business.

Why Would You Want Simplified Life Insurance?

Besides not wanting to do a medical exam, you may want to get simplified life insurance due to the following reasons:

  • A judge has mandated you to get life insurance immediately with your children named as beneficiaries.
  • You need to urgently get a loan and need collateral in order to get the loan. Some financial institutions will actually accept life a life insurance policy as collateral. Double check.
  • You got into a serious accident or you’ve come down with an illness that may shorten your life expectancy.
  • Your term life insurance has matured. You’re not sure whether you want to get another term life insurance policy or a permanent life insurance policy. You’re also not sure if you want to lock yourself into a bigger, more expensive policy.

As you can see by these reasons, getting a simplified issue life insurance is more of a last resort. It is more economical and less stressful if you were able to properly forecast the arc of your life and get a term life insurance or permanent life insurance policy.



For example, let’s say you and your spouse want to have a baby next year and do. You would get a 25-year term life insurance policy so it lasts through college and be done with it.

Or, if your income is high and you have maxed out your tax-advantageous retirement accounts, you could open a universal life insurance policy as another way to build wealth.

It’s only when you haven’t properly planned, never thought about life insurance, or find yourself in a bind that you would get this type of streamlined life insurance.

How To Get Simplified Issue Life Insurance

The best way to get life insurance is to apply with PolicyGenius, the #1 life insurance marketplace online.

Instead of applying to individual life insurance companies one-by-one, you can now apply on PolicyGenius. PolicyGenius has qualified life insurance companies competing for your business. PolicyGenius will then help guide you to the most appropriate policy based on your personal situation.



Most people who apply for a simplified issue policy can expect to have insurance in force upon acceptance of their application. Instead of a medical examination, just fill out a short health questionnaire. This allows the insurance company to complete a modified risk assessment and set a premium and death benefit.

Some insurance carriers provide simplified issue life as either a term life or a permanent life policy. I’d probably just go with a term life option given the premium will be relatively high already. Just make sure your term is appropriately long for your situation. You don’t want to have to keep on reapplying as you get older given premiums will continue to go up.

Life insurance is an act of kindness. Be kind to your loved ones!

Click here for Source



  • Site Yorum

Bir yorum bırak