Getting life insurance can be a long, drawn-out process, particularly if your plan requires a health check in order to qualify. Waiting for an appointment at the doctor can take months, and some people don’t want to wait that long for coverage to kick in. Non-medical life insurance policies can cost a fortune. Fortunately, there’s a solution that combines the money-saving risk reduction of a standard life insurance plan with the speed of a non-medical policy. This is simplified life insurance. Simplified life insurance allows the insured to answer a number of questions regarding their health without seeing a doctor. The insurance company takes the answers to those questions into consideration when determining risk and pricing a plan.
The cost of simplified life insurance is about average. It’s more expensive than a standard plan but less expensive than a non-medical plan. With life insurance, the cost is directly tied to risk and by answering a few simple questions about your general health, the insurance company can get a better idea of what your risk is.
For those in relatively good health, a simplified life insurance policy can save time and money. The insured won’t have to visit a doctor and they’ll still get a break over the cost of non-medical life insurance. Younger people are a better candidate for simplified life insurance because they are generally in good health and are more likely to be able to answer the screening questions in ways that lower costs.
Simplified life insurance is a death benefit. The policy pays out at the time of the insured’s death. The benefits depend on whether the plan is for term or whole life insurance. If it is for term life insurance, the benefits will expire at the end of the term unless the policy is converted to a whole life insurance plan. If the policy is for whole life insurance, the benefits will never expire as long as the premiums are paid.
Policy benefits can be used to pay any type of financial obligation that the of the beneficiary or to provide an income for a period of time following the death of the insured. Paying the balance on a mortgage, paying consumer debts or other large expenses are all possible uses for the cash benefit.
If the insured fails to disclose a medical condition on the health questionnaire and then dies, coverage may be cancelled and the insurance company may not pay out. It is important to give a truthful and full statement during the health screening process to ensure that coverage is not denied in the event of death.
Coverage may not be extended to certain people based on the health screening. Smokers, people with chronic or long-term illnesses and others who aren’t in top physical condition may be denied based on their health questionnaire. In the event of a denial, insurance may still be available if the buyer is willing to submit to a health screening.
Simplified life insurance is a great choice for people in good health who want to access life insurance quickly and without a trip to the doctor. The plan allows healthy individuals to get life insurance at a reasonable rate with minimal hassle.