Life Insurance Facts

When looking at a traditional life insurance policy, one of the main things that you will find is that you will have to write a medical form. This can be troublesome due to many people not being able to tell about their medical history but want to make sure that their partner and family are fully covered. I’ve seen this over and over as a life insurance broker. When it comes to these pitfalls then then look no further than the types of policies that require no medical interegation. These are called ‘Simplified Issue Policies’ and ‘Guaranteed Issue Policies’ but you must be careful because there are many differences between the two.

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 cap 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 higher. 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. Although if you have poor health and fitness, you could be charged additional amounts and if your health deteriates and it is said to be of a high risk, then your policy may be not given. 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. These polices are not offered if you have been refused previously by another company within a 2 year term. It can be taken into account that with more questions answered, the better deal on your insurance you get.

Guranteed Life Insurance Policies

These plans or types of policies are given straight away, with no questions asked, no need for a full medical examination and no small print wording. There is no need to worry about these policies because they can be issued even though you might have been refused somewhere else. With this type of insurance plan, it can be used for expenses after the deceased has been declared. 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.