Simplified Issue Life Insurance
One of the versions of final expense insurance is simplified issue life insurance.
It is quickly acquired, does not require a medical exam, and has the larger death benefit of all types of final expense.
For simplified issue life insurance, in lieu of a medical exam, you answer a health and lifestyle questionnaire. Approval isn’t guaranteed, but most who apply are accepted.
What is simplified issue life insurance?
This type of life insurance is a form of whole life insurance that is meant for those with mild health issues. Also, it typically has a smaller death benefit compared to term because of that larger risk.
But, a major benefit is that it takes effect immediately. Other major benefits of this version of final expense:
- The premium never goes up
- The coverage never goes down
- It has a higher death benefit and lower premium than guaranteed issue
The medical questionnaire
The thing that separates simplified issue from guaranteed issue life insurance is the medical questionnaire. Your answers will determine whether you can get the cheaper premium with the larger death benefit.
So, to help you find out whether you can qualify, we’re going to show you some sample questions you may find on your application:
- Have you ever been diagnosed, treated, tested positive for, or been given medical advice by a member of the medical profession for:
- Congestive heart failure?
- AIDS, AIDS Related Complex, or HIV?
- Lou Gehrig’s disease
- Within the past 12 months have you been advised to use, or have you used, oxygen equipment to assist with breathing (excluding use for sleep apnea)?
- Are you using a wheelchair or electric scooter due to an ongoing diagnosed illness, medical condition, or disease?
- Are you a resident in, or have you been advised to move into, a nursing home or skilled nursing facility?
Again, these are just examples. Each company has its own questionnaire and while you may not qualify for simplified issue with one company you still may with another. So, you’ll still need to check with a life insurance agent and get their guidance.
Available riders
Like most policies, simplified issue life insurance in the final expense realm has a few riders that are available. Depending on the company, you may find these riders available to add to your policy:
- Accelerated Death Benefit — In the event of a terminal illness, policyholders can use the death benefit to cover medical costs in lieu of a payout after death
- Accidental Death — Doubles the payout if death is caused by accident
- Long-term care — If you require long-term care and your health insurer won’t pay for it, this rider will cover the cost.
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