No Exam Life Insurance: Guaranteed Issues vs. Simplified Issue

Not all no exam life insurance policies are created equal. There are two primary differences when it comes to these policies.  These are guaranteed issue and simplified issue. One aims to make the process more convenient while the offer is a last attempt at getting life insurance when you’ve been denied or may be denied elsewhere.

Have you had issues getting life insurance coverage with other carriers?  If so, you might be familiar with these two types of policies. Understanding how these work is important for you to get a good perspective on what to do next.

Comparing the Two

Caps are higher with simplified issue because it’s still geared towards healthy people. This means that the coverage obtained is guaranteed but limited. The bar for declines is higher with simplified issue since it is not meant for people with serious health issues. If you have medical concerns, it is a possibility that you could be declined for coverage with simplified issue. Simplified issue is intended to make the process easier.  However, the challenge with this is that you must still qualify in general.

Bear in mind that being denied for one company does not mean you will be declined for all coverage. Do not jump the gun and apply for guaranteed issue because you’re concerned about not getting coverage at all. Do some shopping and speaking with a life insurance expert.  They will help you to learn all your options. Some carriers have specific red flags that might cause you to be declined there.  This does not mean you are out of choices. Get the details from someone who knows as soon as possible so you’re not limited by your next steps.

When Is It Best to Go Traditional?

Even though both of these types of policies have their benefits, there are times when it just makes more sense to go the traditional route and get an exam. Knowing the carriers and which ones will be friendlier to the medical issues you have makes the application process much simpler. As is the case with no exam life insurance, various carriers view issues in different ways. Do not get hung up just because one company gives you a bad rate or a decline.

If you decide to go the traditional route, you might get better rates, the potential to look at more carriers overall, and more coverage options. With caps being such a big issue in simplified issue and guaranteed issue, traditional exam life insurance opens the potential for your beneficiaries to get more value from a life insurance policy. If this appeals to you, consider working with an independent life insurance agency that can recommend the best option for your individual situation.

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