Some insurance companies off a specific type of life insurance policy called a simple issue policy. A simple issue policy as unique features such as a limited coverage amount, cheaper premiums and does not require a health exam. A simple issue policy is a good option for anyone’s short term insurance needs.
One feature of a simple issue policy is that there is a limited coverage amount. Most simple issue policies offer coverages up to $50,000. The minimum amount of coverage for this type of policy usually starts at $10,000. A simple issue policy is not a complex life insurance policy so a high limit will defeat the purpose of offering a policy of this type. The amount of premium charged for the policy is dependent on the amount of coverage that is selected. Obviously the higher the coverage amount is the more the premium will be for the policy. A simple issue policy is a good idea for individuals that need short term insurance with a limited amount of coverage.
Another benefit of a simple issue insurance policy is that the premium for the policy is usually fairly cheap. This is because there is very little underwriting done on the policy and and the application itself it fairly short. Since a simple issue policy only offers up to a maximum amount of coverage the premium is never going to be really high. The premium is cheaper than other types of life insurance because the policy itself is not that complex. Unlike other types of insurance policies that use age as a factor in the premium a simple issue policy does not. This is another reason why the premium is cheaper than other types of life insurance policies.
The best part about a simple issue policy is that is does not require any time of health exam to be taken by an insured. Even someone in poor health can obtain a simple issue policy. Unlike other types of insurance policies that either charge a high premium or are unavailable to an insured because of their health a simple issue policy can be issued to anyone. This is what makes a simple issue policy unique and beneficial to anyone who needs a short term insurance policy. Some people would end up paying more for another type of policy if they were in poor health. A simple issue policy eliminates this requirement which can make this type of policy worthwhile.
A simple issue policy is a good investment for anyone who needs a short term insurance policy. This type of policy is a good idea for anyone who takes out a car loan because the term for a simple issue policy is usually five years. If something happens to an insured the simple issue policy can be used to cover the cost of the loan.