Non-medical Life Insurance: The Basics
One of life’s upsets is that when it comes to finding the right life insurance policy, a medical form needs to be filled out. As I’ve seen many times as a life insurance broker, this can be problematic when you don’t want to have a full examination of your life history or your physical or mental well-being but still want to have your loved ones covered in the event of your death. There are policies that allows the person some options and do not require a full examination of one’s personal health status. These are the Simplified Issue Policies and Guaranteed Issue Policies. When looking at these policies you need to know the differences before you look into them.
No medical life insurance
Simplified Issue Life Insurance Policies
For this type of policy questions need to be answered but this does not involve you being fully exposed medically. You should bare in mind that such policies have a maximum pay-out of less than $150,000 because life insurance companies have to recover their risks. The risks involved for an insurance company that doesn’t require a full medical examination than to one that requires one exam is much more superior. Under the more common policies the person participates in a standard medical examination and only then if you are approved of being enjoying good health and have a decent personal and family history then you can be given acceptable prices. If there are questions about your health or if you have some family history with medical problems, you will then be rated accordingly (additional charges), also if you are thought that your physical or mental condition is a life threatening or too extreme then you might not be given a policy and it will be turned down. The simplified policies can assure you that you will be given the policy within a few days and without the hassle of full investigation into your or your family’s medical history. Although if you have been refused insurance in the last two years you will not be able to use this policy. With this type of insurance policy it is important to note that the more questions there are to answer, the lower the rates will be.
Guranteed Life Insurance Policies
With these policies, there is no need foranswering questions, no need for a medical follow through and no small underlying writing. There is no need to worry about these policies because they can be given even though you might have been refused somewhere else. Guaranteed Issue Life Insurance Policies cover the final cost after the person has deceased. The limit is usually only $25,000 and benefits are usually limited to a return inc. the interest, if the person with the policy dies within 2 years of the agreement. If the insured dies in an accident, the benefit is paid right away.
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