The reason why it’s called simplified issue is because of its quick medical underwriting process. When you sign up for a simplified issue final expense policy, you don’t need to go to a clinic to get a medical exam. Instead, you just have to answer a series of mostly yes-or-no questions related to your health.
The first advantage is not only true for simplified issue final expense but life insurance as a whole. It’s one of the least discriminatory policies you can get. Other life insurance policies have rigid eligibility standards, where you can be denied on the basis of age or health alone. Final expense insurance is easier to qualify for, and some allow for enrollment up until the age of 80.
Another advantage is the one it holds over guaranteed issue final expense insurance. While guaranteed issue has no medical underwriting whatsoever, the premiums are higher and the death benefits are lower compared to simplified issue final expense.
This is ideal for individuals who are older but are otherwise in good health. Despite companies being more lenient when it comes to issuing these policies, they still take insurability risk into account.
If you’re in good health, the answers you provide on the medical questionnaire will show the company that you will live long enough to pay premiums that will warrant issuing a higher death benefit to your loved ones.
Final expense insurance has no mandates for how beneficiaries use the funds from the death benefit. There are no taxes on it, either. And since you can get a larger death benefit with this type of final expense insurance, your loved ones will be able to cover more expenses. It could allow them to cover all costs of the funeral, and it can relieve them of the stress of paying off personal debts.
Simplified issue final expense insurance is just one of the many policies we can find you. At Alvarado Master Agency, we’ll assess all available options to you and find you the best one with the lowest price.