What is a Simplified Issue Final Expense Policy?

 

Life insurance is thought to be a great option for protecting your loved ones against the

unknown but inevitable financial burden that comes with losing the main provider in the

household. Generally people think of life insurance as having a policy that will pay out money to

their loved ones after they pass away. The truth is not everyone is aware that there are many

types of life insurance policies available in the market including some which can serve very

specific purposes. In this article we will go over a type of life insurance policy known as a

simplified issue final expense policy.

What makes it simple?

Traditionally, life insurance companies have always required applicants to undergo an

assessment of their health in order to qualify for a life insurance policy or for the insurance

carrier(s) to make an offer of coverage to that applicant. Most of the time these health

assessments required physical exams to be performed by a licensed nurse with a requirement

for blood and urine samples to be collected from the applicant.

As data and technology have become more readily available to the insurance industry so has

the simplicity for applicants to get approved for life insurance. This is due to the insurance

carriers being able to assess the risk of offering insurance to individuals based on their medical

information records becoming available electronically and easier to obtain digitally by these

insurance companies, which leads to a streamlined process with electronic underwriting

procedures that end up benefiting both the applicant and the insurer. As a result, life insurance

policies that do not require for a medical exam to be performed are known simplified issue

policies and usually receive a decision of coverage within 48 hours after submitting an

application.

How Final Expenses benefit from it all

By definition, a final expense policy, as it is popularly marketed, is actually a simplified issue

whole life insurance policy. This means a few things when it comes to what the policy is and

how it works:

● Because it is whole life insurance, this means that the policy cannot expire at any age

and is designed so that the insured does not outlive it.

● Simplified means that no physical or medical exams are required as part of the

application.

● The monthly premiums do not increase over the life of the policy and the benefits are

guaranteed to never decrease.

Who Needs A Simplified Issue Final Expense Policy?

As you can guess, those who get a final expense policy do so because they want to protect their

loved ones from future financial burdens. Of course a few more reasons to have one of these

policies can be if you want additional coverage because what you have is not enough, you want

to make sure your family can cover your funeral bills after you pass away, and for paying any left

over debt you might have had while you were alive. For these and many more reasons,

simplified issue final expense policies are a great option for those looking to get a fast, easy,

and reliable life insurance policy.