Find out how you can get insurance coverage quickly and easily with simplified life insurance.
In life and money management, things can get quickly complicated. Simplified life insurance is a great option for people who are looking to get coverage as quickly and easily as possible. We’re going to be discussing how simplified life insurance works, how it is different from other types of insurance policies. Then, we’ll get into the pros and cons of getting a simplified life insurance policy. If getting coverage quickly and easily sounds appealing to you, then we highly suggest that you keep reading!
What is Simplified Life Insurance?
Simplified life insurance allows applicants to skip the medical exam step of a life insurance application.
Getting approved is easy with simplified life insurance.
If you apply for a regular term life or whole life insurance policy, you would be required to undergo a medical exam as a part of the approval process. This medical exam often involves a physical exam and blood tests. In many cases, scheduling a medical exam, getting the results, and getting approved by the insurance company can take more than 60 days.
Since this option is not ideal for everyone, there are insurance policies that allow prospective policyholders to skip the medical exam all together. This is why simplified life insurance is often referred to as no medical exam life insurance.
When you apply for simplified life insurance without a medical exam, your application undergoes a simplified version of the underwriting process. Though you will still have to fill out a medical questionnaire and give the insurance company access to your medical history and any current prescriptions, these steps do not take very long. In some cases, you may be asked to answer a few questions over a phone call with the insurance company before you get approved. However, since you are getting life insurance without a medical exam, the approval process is often instant or happens in a matter of days.
Who is Simplified Life Insurance For?
Now that we know a bit more about simplified life insurance, let’s find out if it is the right coverage option for you.
If blood tests make you squeamish, simplified life insurance could be the solution for you.
There are a lot of reasons that people who are searching for insurance coverage will opt for a simplified life insurance policy over a traditional approval process. The first, and most common reason that people will opt out of a medical exam is due to the time it takes for approval. If you have recently undergone a major life event—like having a child or starting a business—then you will probably want coverage more quickly than the standard two months waiting period. For those looking to get covered as quickly as possible, simplified life insurance is a great option.
Another reason that someone may want a simplified underwriting process is due to fear of needles. Since the medical exam will require a blood draw, many who have problems getting blood taken will want to opt out of this step. It is also very possible that you may just not have the time to schedule and attend a medical exam. If you lead a busy lifestyle as a professional or a new parent, then it is very possible you just do not have the time to attend a medical exam.
In some cases, getting simplified life insurance can help you get a better coverage rate than other insurance types. For example, if you have minor, non-life threatening conditions, you may be able to get a better rate than if you had undergone a medical exam. While this is not always the case, it is something to keep in mind when you are considering your different insurance policy options.
What Are The Advantages of Choosing Simplified Life Insurance?
Simplified life insurance is the best coverage option for many individuals.
Get almost instant approval and save time with simplified insurance.
When you choose to get simplified life insurance, you can really take advantage of a simplified application process. Beyond the fast approval and the lack of a medical exam, you can also count on an augmented medical questionnaire. While applying for a standard whole life or term life insurance policy requires that you fill out a lengthy application that can quickly get overwhelming, a simplified insurance policy will only require you answer a few questions about your health history.
Another advantage of choosing simplified life insurance is that you can get much more coverage than with a guaranteed life insurance policy. Guaranteed life insurance is a type of insurance that does not require any medical information from the policyholder. Since the insurance company does not have access to your medical history, you can expect a very high monthly premium for very little coverage. With a simplified life insurance policy, you can access a lot more coverage than available with guaranteed life insurance and you’ll pay a much lower monthly rate. In fact, guaranteed life insurance policies often only offer up to $25,000 in coverage which is a very low amount in the world of life insurance.
Are There Disadvantages to Choosing Simplified Life Insurance?
Though simplified life insurance is convenient, it is not the right policy for every individual.
Simplified life insurance is convenient, but it isn’t always the most affordable.
As we’ve mentioned, there are specific circumstances that lead people to get simplified life insurance. Whether it be to avoid the medical exam or to get coverage as quickly as possible, these are both solid reasons to check out different simplified life insurance policies. However, if you are not in a rush and are completely fine with taking a medical exam, simplified life insurance may not be the right option for you.
Though you can get a better price for simplified life insurance than you can from guaranteed life insurance, you will likely get an even better price for a standard term life insurance policy. If you are young and healthy, a term life insurance policy will likely be the best option for coverage cost-wise, though you will still need to wait weeks or months for approval.
It is also important to talk about the graded death benefit associated with simplified life insurance. The death benefit is the payout that comes with your life insurance policy. In the event of your death, a total amount will be paid out to your remaining family members. When it comes to simplified life insurance, the catch is that there is a graded death benefit. What that means is that you will need to hold your policy for at least two years before your loved ones can collect a death benefit. In the case of your untimely death within two years of purchasing the policy, then your remaining loved ones will get your monthly premiums refunded with interest.
The last disadvantage we’ll be discussing for simplified life insurance is the coverage amount. If you are searching for $1,000,000+ in coverage, it is best to explore term life insurance policies. In most cases, simplified life insurance is capped at $100,000 to $250,000.
Should I Get Simplified Life Insurance?
Before you make your decision, we recommend making a personal list of insurance priorities.
If you need help finding the right policy, contact an insurance agent.
So, should you get simplified life insurance? The decision is up to you and what you need in terms of insurance coverage. Getting life insurance is an important step and you want to make sure you are purchasing the right policy. To make sure you are getting the right type of policy, make a list of the most important things you are looking for in a life insurance policy. Is it a high coverage amount? Is it a low monthly premium? Is timing a factor? Before you make your final decision, we recommend that you ask yourself these questions so that you can feel confident in your ultimate decision.
If you still have questions or are unsure of which type of policy is the best for you and your loved ones, then we recommend that you research different policies and different providers to make sure you are getting the right kind of coverage at the right price. If you are feeling out of your depth, then you can always reach out to a life insurance agent for advice. By employing a life insurance agent, you can get advice for every step of the life insurance application process.
