As we age, we can all develop health problems, which can make finding affordable life insurance an issue. If you have pre-existing conditions, life insurance companies could either deny you coverage or raise the price of your premiums. The greater the risk it is to cover you, the higher the price for whole life insurance or traditional term life insurance policies. But there is still hope even if you do have pre-existing conditions! There is a way to be approved for life insurance with minimal health questions and without medical exams: look into a simplified issue life insurance policy.
What Is Simplified Issue Life Insurance?
Simplified issue life insurance is a type of whole life insurance, meaning your policy will remain in effect for your entire life. Unlike most whole life insurance policies, simplified issue life insurance is meant for people who need or want life insurance right away and do not want to go through a medical exam. To obtain one of these policies, you simply need to answer a few questions about your health, and will get coverage almost immediately after you apply.
So what’s the catch? Well, with simplified issue life insurance, you can expect higher premiums for less coverage. You will pay more because your insurance company will not get a full view of your health status and will be unable to fully determine how much of a risk you are. With these policies, you will get a death benefit payout anywhere from $5,000 to more than $100,000. However, it is important to note that some health conditions can actually prevent you from getting coverage.
How It Works
In order to get a simplified issue policy, you will have to fill out a short health questionnaire so that your insurance company can complete a modified risk assessment and set a premium and death benefit. Unlike traditional whole life insurance, most simplified issue life insurance policies do not have a cash value that builds over time. To qualify, you must be between 45 and 85 years old. You could be denied coverage if you:
- Are bed-ridden, or in a long-term care facility or nursing home
- Require a wheelchair or oxygen equipment
- Have been diagnosed with Alzheimer’s, dementia, or congestive heart failure
- Are being treated for an organ or bone marrow transplant
- Have been diagnosed with any form of cancer in the past 2 years
- Have a terminal condition
- Have been diagnosed with heart disease in the past year (12 months)
- Have had heart surgery in the past year (12 months)
If you are denied coverage because of any of the above mentioned issues, you still have options. For example, you can look into a guaranteed issue whole life insurance policy. The best way to find the coverage that is right for you is to compare plans from multiple insurance companies.
Advantages of Simplified Issue Life Insurance
- No medical exam or lab tests are required.
- Once your application is filled out, you will get an instant decision. If approved, you will not have to wait weeks or months for coverage to begin, as with other life insurance policies. Instead, your coverage will begin as soon as you pay your first premium.
- These policies are cheaper than guaranteed issue whole life insurance, and offer higher death benefits than guaranteed issue policies.
Is It Right For You?
Simplified issue life insurance might be a good fit for you if:
- You have a pre-existing medical condition (that isn’t disqualifying).
- You do not want to undergo a medical exam, which could delay coverage and raise the price of your premiums.
- You want life insurance but aren’t sure you will qualify for traditional life insurance policies.
- Your term life insurance policy has expired.
- You don’t want your family to worry about final expenses or debts when you are gone.
Pre-existing conditions are extremely common; in fact, according to Health and Human Services, 61 to 133 million Americans have some kind of pre-existing condition. Having one of these conditions does not necessarily mean you are disqualified from getting life insurance, which is a necessary financial asset for your family. There are many different life insurance plans to choose from, and even with health conditions, you can find an affordable plan with great coverage. Consider using online tools, or speaking with an agent. We have provided the top insurance companies that offer simplified issue life insurance policies below; each can give you hassle-free assistance and the most competitive rates in the nation. Always check multiple sites to make sure you have bargaining power and know the advantages of each company. Make sure a hard time isn’t made harder by a financial burden, check simplified issue life insurance rates today.