Simplified Issue Life Insurance vs. Guaranteed Issue Life Insurance for Generation X

By July 21, 2017Life Insurance 101

For Gen Xers like myself (people in their mid to late 30’s, 40’s, and early 50’s born between 1965 and 1984), getting life insurance in an efficient, painless way is a high priority.

Why?

Because we have other things to do with our time instead of worrying about life insurance like taking our kids to and from school and to sporting events, buying a house, growing in our career, starting that second business on the size after regular work hours (or before 5 am), etc. Gen Xers have a lot going on in.

Therefore, Guaranteed Issue Life Insurance and Simplified Issue Life Insurance are viable options for members of Generation X who want a quicker route in getting their life insurance needs met for their family.

(If you know all about the nuances of guaranteed issue life insurance and simplified issue life insurance and would like to skip this article and proceed now to getting term life insurance quotes, CLICK HERE to generate your own term life insurance quotes from around twenty different life insurance companies. The process should take you all of five minutes).

So, Gen Xers, what’s the difference between guaranteed issue life insurance and simplified issue life insurance?

Guaranteed Issue Life Insurance is just exactly the way it sounds—you get the life insurance no matter what. It’s guaranteed.

Here’s the process. You fill out the guaranteed issue life insurance application (there are no medical questions on the application), submit the life insurance application, sign it, pay the premium, and a couple days later—or immediately—your guaranteed issue life insurance policy gets issued.

There are two companies that do a good job with Guaranteed Issue life Insurance:

  • Gerber Life Insurance (yes, the same company that makes the baby food)—Gerber Life offers Guaranteed Issue Life Insurance for people between 50 to 80 years old with face amounts between $5,000 to $25,000. Gerber’s Life’s insurance rate sheet is RIGHT HERE
  • United Home Life Insurance—United Home Life offers a variety of guaranteed issue life insurance products from 20 years olds all the way up to 80 years old. If you would like a guaranteed issue life insurance quote from United Home Life, CONTACT ME HERE

Good candidates for Guaranteed Issue Life Insurance policies are people—including members of Gen X like me—who have been turned down for traditionally-underwritten life insurance policies, and people who are just looking for burial and final expense insurance.

The drawback to most guaranteed issue life insurance policies is that if the named insured dies within the first two years of the life insurance policy being in force, the beneficiaries will not get the full death benefit of the life insurance policy—typically, only a refund of the premium paid in during that time period will be given them. After the two year period, the beneficiaries get the full death amount.

 

 

 

Simplified Issue Life Insurance is basically life insurance without a medical exam which significantly speeds up the process of getting your life insurance policy put into force. The typical time period for a life insurance policy that requires a medical exam to be put into force is between 6 to 8 weeks; the typical time period for a simplified issue life insurance policy that does not require a medical exam to put into force is 2 to 3 weeks. That’s quite a difference.

Simplified issue life insurance policies can be a little more expensive than traditionally underwritten life insurance policies—you are paying a little more for the convenience of not having to take a medical exam. Not always though—some simplified issue term life insurance policies are the same rate as traditionally-underwritten life insurance policies. It just depends on the life insurance carrier, and how much life insurance you are applying for.

Many A-rated life insurance companies that I work with offer simplified issue term life insurance up to $100,000 without requiring a medical exam like Sagicor Life, Minnesota Life, Transamerica, etc. Moreover, SBLI, which is one company I work with, offers up to $500,000 life insurance without having to take a medical exam. Offering that much life insurance without having to take a medical exam is unique in the life insurance industry, especially from an A-rated carrier. If you would like a term life insurance quote from SBLI, email me at Robert@weigelinsurance.com or call me at (615) 525-6165.

The drawback of a simplified issue life insurance policy is the following—if your answers to the questions on the simplified issue application exceed the underwriting guidelines for a simplified issue life insurance policy with that company, the life insurance company will request that you take a traditionally underwritten life insurance application with medical exam to get your life insurance policy issued. Other than that, and the fact that the rate may be a little higher, simplified issue life insurance is a viable option for Gen Xers who would like to speed up the process of getting their life insurance.

Gen Xers and anyone reading this, I hope this has been a helpful article on the differences between simplified issue life insurance and guaranteed issue life insurance. Also, I hope the life insurance companies I listed above offer you a good starting point in helping you get your life insurance needs met if you decide to go down the path of guaranteed issue life insurance or simplified issue life insurance.

If you are a Gen Xer like myself (in your mid to late 30’s, 40’s, and early 50’s born between 1965 and 1984), you can generate your own term life insurance quotes from around 20 different, A-rated life insurance companies on the Life Insurance Quoter HERE. The link will redirect you to the homepage of this website where the life insurance quoter is. Or, if you prefer to discuss your term life insurance needs with me personally, call me at (615) 525-6165, email me at Robert@weigelinsurance.com, or reach out to me through Linkedin.com. Thanks for taking the time to read this life insurance article.

 

Until next time and until next life insurance article,

 

Robert Weigel

Term Life insurance Agent for Generation X

www.weigelinsurance.com

Robert@weigelinsurance.com

(615) 525-6165