One of the most trying things about obtaining life insurance are the medical tests involved. Simplified issue policies have no medical tests and only a few health questions.The number of questions depends on the company and plan. The following are some additional simplified issued life insurance facts:
1. The policy may have a deferred benefit or an immediate death benefit.
Simplified Issue policies that have fewer health questions, generally come with a deferred benefit, meaning the death benefit will be limited to a return-of-premium plus interest in the first two policy years. Simplified Issue plans that have more questions are usually available with an immediate death benefit.
2. Coverage can be available on a term or permanent basis. Term policies have premiums level for a stated term and the coverage either expires, or the premiums increase, after that term. Permanent policies have level premiums and coverage for life.
3. The coverage on a permanent simplified issue policy is available on a Life Pay or Limited Pay basis. Life Pay policies have premiums payable for life. Limited Pay policies can be paid-up in a limited number of years, the most common type of Limited Pay is paid-up in 20 years - meaning no more payments are made after 20 years, but you are still covered after the 20th year.
4. The death benefit is generally tax-free.
5. The policy owner can choose their own beneficiary. The beneficiary must have an insurable interest, like a spouse, child, or business associate.
6. Simplified issues policies h higher face amounts and lower premiums than guaranteed issue plans.
For more details on no medical life insurance in Canada, please contact us a 1-866-899-4849 or visit our No Medical Life Insurance Quote Page.