Non-medical Life Insurance Explained

Speaking from a position of life insurance broker, I can understand the frustrations when it come to purchasing a traditional life insurance policy that requires the accountable medical form which should be completed. This occurs when most people can't account for planning towards a goal but want to make sure that their family is well taken care of. There is no need to worry about these traditional life insurance policies because some plans do not need the passing of a medical examination. Simplified Issue Policies and Guaranteed Issue Policies are such examples of this. However there lie differences between these 2 types of set plans which should be clearly understood before buying these policies.

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. To be more specific companies are at greater risk at losing money because a medical examination was not carried out before the agreement was made. Under the traditional insurance policy that caters a medical exam, once a full examination is completed and if you are in good physical and mental health and your medical and family history meets no question, it is only then when you can be offered good or standard rates. On the other hand if you are personally experiencing bad health you will be charged additional costs and if your condition is thought to be a major or terminal disease then your application will be unacceptable. With these simplified life insurance policies you can have your own insurance coverage within 3-4 days and without the need for your personal health problems getting in your way. These polices are not offered if you have been refused previously by another company within a 2 year interval. 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.

Guaranteed Life Insurance Policies

These plans or types of policies are given immediately, with no questions asked, no need for a full medical examination and no small print wording. These policies are available to those people that have been refused during the last couple of years. Final expenses are fully covered with this policy. The face payment is with most policies up to $25,000, while the death benefit pays back the return including interest, in the case of the insured dying within 2 years of the policy. Although the payout is made straight away if the person holding the policy dies by accident.