Here at IBUSA, we’re often asked by clients of all ages…
“What’s the easiest life insurance policy to qualify for?”
Which seems like it should be an easy question to answer, but the problem is, the answer is going to depend upon the person asking the question!
If you’re young, healthy and don’t have any pre-existing medical conditions to speak of, chances are, the easiest life insurance policy for you to qualify for will be a no medical exam term life insurance policy.
If you’re in your mid-sixties and you’ve been prescribed a few medications in the past, applying for a no medical exam life insurance policy probably isn’t going to be your best bet.
Individuals like these will probably find it much easier to qualify for a traditional term or whole life insurance policy that will require one to take a medical exam vs a no medical exam option.
This is why…
In this article, we wanted to take a look at several of the most popular life insurance policy options that are available today and discuss what “kind” of client may find them to be their best or “easiest” option to choose form.
Options that will be considered will include:
- Traditional term or whole life insurance policies.
- Simplified issue or no medical exam life insurance policies.
- And guaranteed issue or final expense life insurance policies.
So, without further ado, let’s dive right in.
Top 10 Easy Life Insurance Companies
The following companies offer some of the easiest life insurance policies to qualify for.
- American Amicable
- American National
- Fidelity Life
- Foresters Financial
- Gerber Life
- Mutual of Omaha
- Principal Financial
Each of the companies listed above offers easy life insurance in one form or another, such as whole life, term life, and final expense insurance.
So let’s talk about each type of life insurance starting with traditional term or whole life.
Traditional Term or Whole Life Insurance.
First things first, technically, there isn’t a “traditional” type of term or whole life insurance policy. It’s just a term that we use here at IBUSA to describe those “types” of life insurance policies that will require one to take a medical exam before being approved for coverage.
We simply use…
The term “traditional” because this is how many of the best life insurance companies have conducted their business for the past 100 years or so.
In fact, the idea of being able to qualify for a term or whole life insurance policy without taking a medical exam is a relatively new concept and one that not all life insurance companies have chosen to embrace.
That said however…
Traditional term life insurance policies are generally going to be a great option for someone looking to qualify for the best life insurance rates.
Or for those…
Who may have been previously diagnosed with a pre-existing medical condition whereby a more thorough examination of one’s current health (via a medical exam) and one’s medical records are likely to improve one’s chances of being able to qualify for coverage.
This is because…
These types of life insurance policies are generally reserved for folks looking to purchase more than $100,000 in coverage and dedicate more time and energy to the underwriting process, thereby allowing an insurance underwriter greater flexibility in determining who they will and won’t insure.
Simplified Issue or No Medical Exam Life Insurance Policies.
Simplified issue or No Medical Exam Life Insurance policies represent a new and growing trend within the life insurance industry whereby a life insurance company will rely more on indirect “data” (that is readily available about a potential insured), rather than on an actual medical exam or the release of an individual’s medical records.
But be warned…
Just because these “types” of policies are often referred to as “simplified” or just because an individual won’t be asked to take a medical exam to apply for these types of life insurance policies doesn’t mean that they are necessarily “easy” to qualify for.
If you are young and healthy and you haven’t been previously diagnosed with any pre-existing medical conditions or prescribed any kind of prescription medications, you shouldn’t have a problem qualifying for one of these “types” of life insurance policy.
If you’re not young, or you have been diagnosed with a pre-existing medical condition, there is a chance that you may not be able to qualify for a “simplified issue life insurance policy”.
Even if you can qualify for coverage, the price that you may end up paying for one of these “types” of polices could be significantly higher than you would have paid had you simply applied for a traditional life insurance policy.
Where these policies…
Do make quite a bit of sense is when we are trying to insure someone who is young and healthy or when we are trying to ensure someone in their 40’s or 50’s who doesn’t already have any life insurance in place and hasn’t had a physical in quite some time.
The reason why…
It makes sense for someone like this is because if the proposed insured hasn’t had a recent physical performed by their primary care physician, are they sure that they don’t suffer from many of the common ailments that many middle-aged Americans suffer from?
Conditions that can and often will negatively affect the outcome of their life insurance application.
Conditions such as:
- High blood pressure,
- Elevated cholesterol levels,
This is why…
Even though some folks may be able to qualify for a lower rate if they choose to apply for a traditional life insurance policy, it may make sense to secure a no medical exam life insurance policy first.
Once fully insured, proceed to shop around a bit and see what other options you may be able to qualify for that will require you to complete a medical exam.
Guaranteed Issue Life Insurance Policies.
The last type of life insurance that we want to take a moment is called Guaranteed Issue Life Insurance policies or Final Expense Insurance. These types of life insurance policies only have three requirements one must meet to be able to qualify for them.
- The first requirement is that you must be a US citizen.
- The second requirement is that you must reside in a state where these types of policies are offered.
- And lastly, in most cases you must currently be between the ages of 50 and 85 years of age (for most final expense insurance carrier).
One could make the argument that these types of life insurance policies are the “easiest” to qualify for, however, if you don’t live in a state where they are offered, or you’re not over the age of 50 you may find that these “types” of life insurance policies are quite difficult if not IMPOSSIBLE to qualify for at the present time!
We should also point out that…
Unlike the other “types” of life insurance policies that we have discussed so far, guaranteed issue life insurance polices do have three potentially serious disadvantages attached to them that could prevent you from wanting to purchase one for yourself.
Three main problems of a typical Final Expense Insurance Policy.
Guaranteed issue life insurance policies will generally only provide up to about 25,000 dollars in coverage. This means that if you’re looking to purchase more than 25,000 dollars in coverage, a guaranteed issue life insurance policy might not be right for you!
(Yes, individuals can buy several different guaranteed issue life insurance policies from several different companies, but as we will now discuss, this can get really expensive).
Problem #2: Cost.
While it is true that lots of Final Expense Policies can be quite affordable, it’s important to understand that Dollar for dollar, these types of life insurance policies aren’t always the most affordable when compared to other “types” of life insurance policies out there.
Guaranteed issue life insurance policies contain a clause most commonly referred to as a Graded Death Benefit.
Graded Death Benefit Defined:
Graded Death Benefits are “clauses” written into most (if not all) guaranteed issue life insurance policies which state that a guaranteed issue life insurance policy won’t begin to cover an individual from “natural causes” of death until a certain waiting period has elapsed. This “waiting period” will usually last 2 to 3 years and is designed to make sure that someone who knows that they are very close to death from being able to purchase these “types” of life insurance policies.
This may seem incredibly unfair; it’s important to remember that a guaranteed issue life insurance policy isn’t going to require you to take a medical exam or answer any health-related questions.
So, at the end of the day, a graded death benefit is the only thing that allows an insurance company to be able to offer one of these “types” of life insurance policies.
The good news is…
That while you may have to wait for 2 to 3 years for one a Guaranteed Issue Life Insurance policy to provide you true life insurance protection, these “types” of life insurance policies will provide immediate coverage for any “accidental causes” of death and may also offer some kind of “return of premium” to the beneficiaries insured applicants who do end up dying from natural causes before their Graded Death Benefit expiring.
So, it’s sort of like buying a small Accidental Death Policy that will ultimately “turn into” a true-life insurance policy after a period of time.
And there you have it!
Our breakdown of the three most common types of life insurance policies you’re likely to find with a breakdown on how each of them could potentially be the “easiest” for a particular individual to qualify for.
Don’t worry about it.
After all, the purpose of this article wasn’t to try to make you an insurance expert, it was just to give you a general idea about what options may be available to you so that you would have a better idea what to look for when shopping for you insurance coverage.
We here at IBUSA are really easy to talk to so, just give us a call and allow us to help you out today!