The Basics of Simplified Issue Life Insurance

April 26, 2018


There are different types of insurance including term life insurance, whole life insurance and many more. So, what is the difference between simplified issue life insurance and how does it differ from other life insurance policies?

Simplified issue term life insurance allows you to benefit from a life insurance cover without having to undergo a medical exam. You are however expected to fill out an application containing quick and easy questions.

Difference between Simplified Issue Life Insurance and How It Differs from the Rest?

Insurance companies usually want to know about you before they consider you eligible to apply for their whole or term life insurance. They mostly want to know about your life expectancy based on several factors.

Apart from filling out a detailed question form, most insurance companies require that you undergo a medical examination by a medical technician who will visit you at your office or home and draw blood and urine samples. Basically, you will have to undergo the same type of tests that are given during the annual physical.

Instead of relying on a medical exam, with simplified issue life insurance, insurers depend on data bases and algorithms to evaluate your health status.

At the moment, not many insurance companies offer this type of insurance. The ones that do target younger people who generally have good health. The catch though is that you will have to pay higher costs. Simplified Issue life insurance also has limited coverage.

Purchasing a Simplified Issue Life Insurance

Buying a simplified life insurance cover is relatively easy, many insurance companies sell it either by phone or online.

Amount of Coverage You Are Likely To Get

A simplified issue term life insurance cover can be purchased in increments that range from $5,000 to $100,000. Most insurance companies want to policy holders to start buying insurance covers when they are young so that they can increase coverage as their assets and incomes grow.

The Length of a Coverage

Unlike permanent and whole life insurance, simplified issue life insurance is temporary and will only last for an agreed period of time which can be up to 20 years.

Cost of Simplified Issue Life Insurance

As mentioned before, this type of life insurance cover costs more than conventional life insurance policies. This is because, when the insurance company sells you a policy, they do not know much about your health status which means they are taking a great risk by insuring you.

Simplified life insurance premiums are partly determined by the age of the policy holder. In that sense, a simplified issue life insurance policy is similar to other life insurance covers.

How do you pay for it?

How you pay for it varies from one insurance company to the next. One insurance company will demand that you pay your premiums monthly while another insurer will allow you to pay semi-annually. Yet, another insurance company will expect you to pay on an annual basis.

If you would like to get the best simplified issue life insurance cover in Florida, do not hesitate to get in touch.


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