Can you believe that many people put of the purchase of a term life insurance policy because they anticipate that it will be a big hassle to buy? They know they need to cover their families, protect their homes, and provide security. But they think that they will need to give up their privacy, fill out a long and complcated application, and go through a physical exam. So even though they understand why they should cover their lives, they just put it off.
These days, insurers operate in a very competitive market. You can barely watch tv without seeing competitive ads, and you also see ads on the internet. In fact, it is very easy to compare available plans and rate quotes with online forms. Some companies not only allow you to get rate quotes, they even allow you to apply online for their policies!
In order to save money, and with new computer tools, many large insurers are allowing most applicants to skip the medical exam too. A physical is an expense for the company too since they have to pay for it, and also pay for processing the information from that exam. They have better ways to get the information they need in order to offer a policy to applicants.
This helps consumers too. Busy people do not need to schedule appointments to fill out applications and have a medical exam. More laws and systems are also set in place to protect privacy, so consumers do not need to fear an intrusion on their personal lives. Many simplified issue policies are on the market that can help most people obtain proper coverage with very little trouble.
Is a simplified issue term policy right for you? For many people, simplified issue coverage will help them obtain a life insurance policy at an affordable price. Answers to a few questions on an application will be enough for an insurer to quote a rate, and it will also be enough for them to issue a policy.
Some people may do better by going through the process of getting a fully underwritten policy though. If you want a large face value for your policy, and if you believe you qualify for the very lowest rates, you may want to consider spending the time to give an insurer more information. In general, the more information an insurer has, the better able they will be to offer you the very best rates. For lower face values of insurance, and for younger people, the difference will probably not be that signifigant. But older people, and those who need a large amount of coverage, may be able to save money in the long run, by taking more time with their application process in the beginning.
You need to look at your own situation realistically. If you have the health of an athelete, you may qualify for the very best rates. But if you are like many people, you would only get a standard rate no matter what information you give an insurer, so the process may be a waste of time.
