If you are interested in term life insurance with no medical underwriting, physicals or blood-work, then there are policies available for you. Many companies now offer non-med term policies; also known as simplified issue term life insurance.
These policies are appropriate for those with less than perfect health and for those who want to avoid medical underwriting. Applying for coverage is simple and policy turnaround is quick and easy.
Non-Med Term Life Insurance Providers
There are a handful of companies offering such policies. Some are permanent policies designed to cover burial expenses while others are for specific terms – say 30 years. Usually there are limits on the face amount of insurance you can purchase. The maximum amount available from most providers is $400,000 in death benefit per policy.
More stringent underwriting would be necessary if you wanted a larger face amount. You can purchase multiple policies from separate carriers in order to increase your overall insurance coverage, however.
Most companies will ask at least a few questions on the application. There can be certain factors that prevent you from buying a policy. This would apply to those with serious health issues. Most who apply are accepted so long as they’re in reasonably good health.
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Whole Life Or Term Life Insurance Coverage?
Term life policies can be purchased for lengths of 10, 20, 30 or 40 years with some lengths in between. You are always free to cancel your policy at anytime if you so choose. You are essentially renting the insurance for as long as you think it might be needed. It’s not permanent. Premiums are more affordable and death benefits are typically higher. They are designed to get you from point A to point B in life.
There are several benefit riders you can add to your term policy, including: critical illness, waiver of premium, disability income, and accidental death or dismemberment. Some carriers allow you to add additional insureds like a spouse or children.
Conversely, most whole life policies generally have smaller death benefits. We see these used to cover funeral expenses. Most guaranteed issue whole life insurance policies do not provide a full death benefit right away. That would involve too much risk for the insurance company.
More likely the full death benefit would be available after the first year. If the insured passes away before then, the premiums plus 10% would be returned to the estate. This is referred to as a graded death benefit.
Simplified Issue Term Life Insurance Quotes
To be clear, you get your your best insurance rates when you are medically underwritten. However you may not wish to subject yourself to the process for any number of reasons. Non-medical term life insurance will be more expensive, but it is certainly not cost prohibitive.
Term policies can be used as a stopgap measure if you find yourself in a transitional period of time. Perhaps you are working toward better health and need something in the interim. In the future, you can purchase new term insurance through traditional underwriting methods and cancel the old policy.
In summary, simplified term life insurance is a quick and painless way to purchase a life policy that will protect your loved ones. It will give you peace of mind knowing you have financially provided for those closest to you.
In any form, life insurance is the most cost effective way to insure a stable future for those who depend on you. Whether it’s term, universal or guaranteed whole life insurance to cover funeral expenses, a policy with no underwriting can make a lot of sense.
Request Life Insurance Information & Quotes
If you would like to view simplified issue or traditional term life insurance quotes, please contact us today. At Hyers and Associates, Inc we work all of the major life insurance providers. We’ll recommend the most suitable plan for you and your family.