A simplified issue life insurance policy can allow you to skip the medical examination that can save you from the hassle of going through the procedure.
However, there are admonitions that come along the policy such as higher cost but we can validate the benefits against the cost and discuss the other relative parameters hereby.
Do you know the procedure and mandates for buying a life insurance policy?
As we apply for the policy, we need to undergo a medical checkup and produce its certificates to the insurance firm before we move ahead with other legal formalities.
A medical examination is an obligatory part of the underwriting process for fulfilling the application for life insurance policy.
The companies can judge the health parameters of the applicant and anticipate their life longevity in order to substantiate their risk appetite with these medical reports.
It also has a significant decision on the ‘amount of money’ that you can be promised or the size of the premiums that one may have to pay every month. In one way, it is a deciding factor towards the cost of your insurance policy.
While some people are completely okay to go with the above-said procedure, there are others who find the process to be quite cumbersome and unfulfilling due to their various reasons.
What is a Simplified Issue Life Insurance Policy?
In clear terms, simplified policy refers to “No Medical Examination” policy.
Generally, people who contemplate undergoing the medical checkup while lining in the hospital queues can simply opt for such plans. Just as the name implies, it makes the procedure for attaining the life insurance quite simpler.
Yes, there can be one to one questions from the company to the customer but there will not be any need of the medical proofs pertaining to the same. It defies the traditional rules and regulations that one has to follow while undergoing a medical examination for the generalized life insurance.
Due to the elimination of the medical examination, the process is considerably faster. Within no time one can avail the simplified issue policy.
Standard Policies VS Simplified Issue Policy
If you want to know that what all is included in a simplified policy, we provide a brief comparative analysis of the procedure here:
In the standard medical examination following checkups are performed:
– Height and weight (BMI)
– Blood Pressure
– Sugar levels
– Previous ailments
– Urine tests
– Blood test
These tests help in deciding the cost of your policy relative to your current medical state.
At the same time in simplified issue plan, there is a health-based questionnaire which is generally put forth by the company representative itself.
This questionnaire is to determine your basic lifestyle habits and health condition such as your state of drinking, smoking, and the presence of any terminal health disease.
We want to clarify that although the simplified policy eliminates the medical exam it is certainly NOT the ‘Guaranteed issue policy’ where the applicant is assured of getting the life insurance.
There can be ailments and conditions based on the questionnaire that can get your application rejected as per the company norms.
How to Buy Affordable Simplified Issue Life Insurance Policy?
The process of buying the policy is very straightforward. You can look for the companies in your region/state that offer such policy through the internet.
In fact, you can compare their quotes and coverage benefits too.
Once you know where to find them, now you should find out who has been in the business for the longest duration.
The Internet provides all sorts of information regarding their portfolio, past and existing clientele, performance and customer satisfaction levels.
This research will help you in sorting out your options to a great extent.
**We advise our readers that one should not go after the lucrative offers being presented by the new players in the field. There are various scams and fraudulent practices that undergo in the financial sector. A trusted brand name will always come up with legitimate offers and best practices for their customers.
Online forms can be downloaded and submitted through the portal itself for filing your application for a simplified issue policy.
Even some of the companies have uploaded their health questionnaire too online so that the customers can fill them up at their convenient time.
Pros and Cons – You Must Know!
Just as we stated in the beginning, there are caveats associated with the benefits in simplified life insurance policy, let us give you an idea of pros and cons to this policy here-
– No medical examination
– Quicker issuance of policy (only a few days not even weeks)
– Simplification of the process
– Higher in prices, expensive than standard insurance policies
– Limitations in the coverage benefits
– Just like many standard insurance policies allow you the scope of customization as per the need of the buyer, these policies mostly comes in customary norms. You cannot customize it further.
The simplified issue life insurance policy is for those who are looking for hassle-free and quicker insurance plan and do not mind paying a little extra for the convenience.
At the same time, if you are looking for some price beneficial policy, this may not be a very optimal option. Such plans are devised to facilitate a large section of people who hesitate to take life insurance plans just because of medical examination procedure and waiting periods of weeks.
The word of caution comes as – do not hide your medical condition, if there is anything, you must mention in the questionnaire. If anything serious will come upfront later one, your beneficiaries may have to suffer from no benefit clause in the actual time of need.