There is a direct correlation between premium rates charged and risk. As a result, the fewer the medical questions asked on an application, the higher the risk to the insurer and the higher the rates. Conversely the more elaborate the underwriting process is, the lower the risk and the better the rates.
Non-medical life insurance often referred to as a simplified issue, requires no medical tests and no and doctor’s report. However, to qualify you’re required to answer “no” to the 7 to 20 medical questions asked. Middle of the road prices, usually the best solution for applicants who’ve experienced more serious medical issues but their conditions have been stable for years.
The key is stability over time, no change in medication and no treatments administered during the last 24 months, some insurers may require a 60 month period. A good example of a person who could qualify for a permanent insurance simplified issue would be a heart patient who had a stent installed 3 years ago, no other treatment has been required and no change in his medication since.
Guaranteed issue life insurance or guaranteed acceptance life insurance, should be considered as a last resort, as the death benefit is deferred 24 months and the cost per $1,000 of insurance is the highest among the 3 methods presented. Guaranteed issue life insurance provides an opportunity to get insurance when no other option is available.