Simplified Issue Term: What you Need to Know
In today’s digital age you can buy anything from a car, clothes, food and even a house completely online. People are just busier these days and life can seem a bit hectic with everything going on at once. That is why a lot of individuals are confused when they find out it takes 6 to 8 weeks on average to get approved for life insurance, plus a bunch of paperwork and a pretty invasive medical examination. Well, the good news is a lot of companies are starting to offer simplified issue term life insurance. In this article, we will cover what simplified issue term life is how to get it and if it’s the right product for you.
What is Simplified Issue Term?
So what is the simplified issue term life insurance? Well, it is simply a term life insurance plan that has a bit more simpler underwriting process. A simplified issue plan is also known as no exam term life insurance so in essence, it allows you to skip the medical exam which results in much quicker approval times and of course fewer hassles. It is offered by few companies and you can typically secure up to $500,000 of Life Insurance for anywhere from a 10-year to 30-year term plans. Keep in mind though that most companies cap the coverage at $250,000 for simplified issue option but they are a few that will go up to half a million.
The approval times for a simplified issue term can range from instant to a few weeks all depending on which company you pick. If you are an individual with pretty good health under the age of 65 you can get coverage the same day from one of the no medical exam companies. Now you may be wondering, why is good health important for a simplified issue term? Well, because the company is not using the exam to make a final evaluation they actually have fewer factors to go off of and will be more picky with the clients they want to insure. Although they don’t use the medical exam as an approval factor they will still pull your pharmacy records, Medical Information Bureau records, and motor vehicle history to decide if you’re a good risk or not. You’d be surprised to see how much they can learn about an applicant without an exam so be straightforward when answering application questions.
What is the application process like?
Not only can you skip the medical examination but the entire application process is very simple and smooth. Most simplified issue term life plans have an electronic application which takes about 10 minutes to complete and can be e-signed via email. Once it’s e-signed the application gets submitted and depending on the company you can either get approved right there and then or it may take a few days. It’s pretty wonderful to complete the entire life insurance application process from the comfort of your laptop or an iPad. Some life insurance companies are also offering e-policy delivery which means once you’re approved you actually get your policy in your inbox and you can be covered right away! As mentioned before though, remember that during the application process the company will be checking all the records that they can pull digitally to evaluate you. If you have some prescriptions on your record or DUI, expect a simplified issue term company to rate you up or simply turn you down unlike a traditional process where a company would still try to work with you.
Who is it right for?
A simplified issue term plan is ideal for people who are extremely busy, don’t mind paying a little extra and are in good health. A busy individual can secure policy within minutes rather than having to wait up to 2 months and going through a hectic medical examination. Now these plans do cost a little more, obviously due to the convenience factor so you need to be willing to pay extra for it. Contrary to the popular belief if you have pre-existing medical conditions then a no exam policy is actually the worst choice for you. A simplified issue plan it’s going to be a lot more picky with evaluating your health and history.
In summary simplified issue term is an amazing product since you can secure a life insurance policy without having to do an exam from the comfort of your own home. It is also worth the extra cost that these policies have because time is money and the busy person knows that. Now when it comes to a simplified issue term just like any other type of life insurance you should always shop around with an independent broker to find out which companies have the most competitive rates. You should also work with an agent that is experienced in underwriting to determine whether a simplified issue term will work for you or if you should just go with a fully underwritten term life plan.