If you are older or if you have certain health conditions that prevent you from obtaining other types of life insurance, simplified issue life insurance might provide you with the coverage you need. Other types of insurance can be strict, and often require you to undergo a medical exam before they approve you. If you go with this route, you simply answer a questionnaire, no visit to the doc is necessary.
How does simplified issue life insurance work?
Simplified whole life insurance can provide a decent payout (up to $50,000 usually) at an affordable premium that you pay monthly. Instead of having to jump through hurdles, they will provide you with a detailed medical questionnaire that is used to determine your eligibility.
There is a requirement that you must pay on the policy for a minimum of 2 years before it will be able to pay your beneficiaries the amount of the policy. If you fail to meet this 2-year requirement due to death, the amount that you paid in premiums will be refunded instead.
The Pros of Simplified Issue Life Insurance
While this may seem to be a backup option for many, it’s still able to provide a better value than some of the other types of life insurance policies on the market. Check out some of the advantages below.
· A fixed payout will be paid out in the event of your death.
Preparing for the inevitable isn’t the easiest thing that one can do. However, knowing how much will be paid to your beneficiaries will make it easier to have your final affairs in order.
· It’s an alternative for those who might not qualify for guaranteed life insurance.
For those who don’t know, guaranteed life insurance can be pretty strict in terms of who it will actually cover. This isn’t ideal for those who may have health conditions or those that are in their later years making this an ideal choice since the approval process is a lot simpler.
· Premiums are usually lower than the other form of life insurance on the market.
This is because it’s a basic approach to life insurance and the insurance company knows how much they will pay upon your death. For those who need to remain budget-conscious, this is a great option to consider.
When you want to keep things simple and know what you can leave behind, this is the path that you are probably going to be better off taking. While it might not provide the option to get access to funds while you’re still alive like a guaranteed life insurance policy, it’s still a valuable option that’s easier to get approved for.