Simplified issue final expense takes a different look at traditional eligibility requirements for life insurance, making it easier for those older and with minor health issues to enroll.
Final Expense as a Whole
Generally speaking, what is final expense insurance? These policies provide a payout, known as a death benefit, to chosen beneficiaries upon the policyholder’s death. Certainly not a pleasant topic for anyone involved, but extremely helpful and necessary to cover important costs.
With death benefits ranging from $2,000 to $50,000, these policies can cover items such as your funeral arrangements, medical bills, estate taxes, credit card payments, and more. This way, it is out of the hands of your loved ones to cover on their own.
A Broad Look at Simplified Issue
Let’s narrow this down to simplified issue final expense insurance. Simplified issue is designated by the enrollment process. When you go to sign up for a final expense policy, you will get to choose whether or not you want to sign up under a simplified or guaranteed issue policy.
Simplified issue will ask minor, very broad questions regarding your health. This will include “yes” or “no” questions such as whether or not you have/had cancer, heart disease, AIDs, etc.
Simplified Vs. Guaranteed Issue
Compare this enrollment process to guaranteed issue—rather than asking these simple questions (known as medical underwriting), guaranteed issue skips the process altogether. In other words, you can enroll in guaranteed issue if you are not eligible for simplified issue.
Why choose simplified issue? Well, if you qualify, it is cheaper than guaranteed issue. Because simplified issue gathers basic health information to determine your risk, they are able to lower your premiums compared to guaranteed issue, which assumes you are at some sort of health risk.
Simplified issue is great for those who want life insurance but may not qualify for other policies, yet are healthy enough to choose it over guaranteed issue.
It is an excellent policy to purchase if you want funeral coverage but already have a whole or term life policy. It is also helpful if you are no longer eligible for those bigger policies, most likely due to age. You can have minor health issue with simplified issue that would otherwise disqualify you from other policies, making it an excellent middle-of-the-road qualification option.
Why You Should Consider Simplified Issue
The question is, then, is simplified issue right for you? At the end of the day, this depends on your eligibility and own life insurance goals. If you are eligible, it is an incredibly helpful and often necessary source of financial coverage. And, if you are looking for a plan to cover your funeral and other important final expenses, it will be a huge benefit to you and your loved ones.