New question in Life Insurance FAQ

New question in Life Insurance FAQ:

Can I get Life insurance if I’m sick?

Yes, life insurance is available to people who are sick. Depending on the type of illness, the insured may still qualify for traditional life insurance plans that require medical tests and health questions. Otherwise, non-medical life insurance plans fall in the two categories mentioned above: Simplified Issue insurance (where there are no medical tests and three to 12 health questions) or Guaranteed Issue coverage (where there are no medical tests and no health questions).

Generally speaking, traditional life insurance offers a more affordable life insurance plan than Simplified or Guaranteed Issue coverage. Most Guaranteed Issue policies also have a two-year waiting period on the death-benefit, so if the insured dies in the first two years, the plan’s payout is limited to a return-of-premium plus interest.

Simplified Issue plan coverage can often start from day one, and the face amounts, along with the premiums, are lower than those of Guaranteed Issue life insurance. Guaranteed issue plans have higher premiums and the death benefit is often limited to a return of premium, plus interest for all non-accidental deaths in the first two years.

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