Simplified Issue Disability Insurance

Some people dread the insurance underwriting process – but that shouldn’t stop them from securing the disability insurance they need to protect their income. With simplified issue disability insurance, workers can secure paycheck protection without a time-consuming underwriting process or medical exams.

Although simplified issue disability insurance may not be right for everyone, this option can be ideal for workers who don’t want to deal with underwriting. This includes people who engage in high-risk activities and who have medical conditions that could cause problems during the underwriting process. Simplified issue disability insurance also offers a hassle-free way to gain coverage and can be a good choice for people who want to supplement their work-based insurance but don’t want to deal with complicated insurance applications and health questions.

Serious Health Conditions Are Common

One of the most common reasons people fear insurance underwriting is they know they have a pre-existing health condition that will show up in their medical records and medical exams.

Medical conditions are extremely common and impact a large portion of the population. Just a few of the conditions that affect millions of Americans include:

  • Cancer: The CDC says 1.7 million people are diagnosed with cancer each year and one in three people will have cancer at some point in their lifetime.
  • Heart Disease: Approximately 20.1 million adults aged 20 and older have coronary artery disease, according to the CDC, and every year, 805,000 people in the U.S. have a heart attack.
  • Diabetes: About one in 10 Americans has diabetes, according to the CDC. That’s 37.3 million Americans. Another 96 million Americans have prediabetes.
  • High Blood Pressure: Nearly half of all adults in the U.S. have hypertension, according to the CDC, which increases the risk of heart disease and stroke.
simplified issue disability insurance
simplified issue disability insurance

Serious Health Conditions Are Common

One of the most common reasons people fear insurance underwriting is they know they have a pre-existing health condition that will show up in their medical records and medical exams.

Medical conditions are extremely common and impact a large portion of the population. Just a few of the conditions that affect millions of Americans include:

  • Cancer: The CDC says 1.7 million people are diagnosed with cancer each year and one in three people will have cancer at some point in their lifetime.
  • Heart Disease: Approximately 20.1 million adults aged 20 and older have coronary artery disease, according to the CDC, and every year, 805,000 people in the U.S. have a heart attack.
  • Diabetes: About one in 10 Americans has diabetes, according to the CDC. That’s 37.3 million Americans. Another 96 million Americans have prediabetes.
  • High Blood Pressure: Nearly half of all adults in the U.S. have hypertension, according to the CDC, which increases the risk of heart disease and stroke.
simplified issue disability insurance

Like Health Conditions, Disability Is Common

The CDC says that 61 million U.S. adults have at least one disability. This means that 26% of adults in this country are disabled.

It’s true that disability risks increase with age. The CDC says that two out of five adults aged 65 or older have a disability. However, younger individuals are not immune to the risk of disability.

The ADA National Network says that 10.5% of non-institutionalized individuals between the ages of 21 and 65 have disabilities. This figure may not even include everyone who could be considered disabled, such as people with certain upper body disabilities or mental illness.

The Social Security Administration says one in four of today’s 20-year-olds will become disabled before reaching retirement age. Disability is not a rare occurrence – it’s something that strikes people every day. For this reason, it makes sense to prepare with disability insurance.

simplified issue disability insurance

The Critical Need for Disability Insurance

Whether or not a person has pre-existing conditions like cancer or diabetes, there’s a risk of disability. It could be an injury that results in disability or it could be an illness. Either way, someone who is dealing with a disability might be unable to work.

Disability insurance replaces some of the lost income, according to the terms of the insurance policy.

Disability insurance is critical because the vast majority of workers depend on their income. If their paychecks stop, they may run through any savings they have fast, after which they’ll have no way to pay the bills. At the same time, they may face out-of-pocket medical bills, which will force them to deplete their savings even faster. Disability insurance can help them keep their finances under control, allowing them to focus on their health.

simplified issue disability insurance

Underwriting Concerns Keep Some People from Applying

Let’s use the example of a woman we’ll call Sarah. She was diagnosed with breast cancer in her 30s but made a full recovery and returned to work. She knows firsthand how disruptive disability can be and, as she depleted her savings when she had cancer, she’s unsure how she’d survive financially if she became sick or injured again. However, since Sarah assumes she wouldn’t qualify for disability insurance, she doesn’t buy coverage. Then her back is badly hurt while she’s riding her bicycle – something she does to stay healthy – and her spinal injuries prevent her from working. Sarah doesn’t know how she’ll cover her costs, but the situation could have been different had she had disability insurance.

Despite the high risk of disability, some people avoid applying for disability insurance because they don’t think they’ll qualify for coverage based on their pre-existing conditions. This isn’t necessarily the case. It actually is possible to secure disability insurance with pre-existing conditions, thanks to simplified issue disability insurance.

simplified issue disability insurance

What Is Simplified Issue Disability Insurance?

Simplified issue disability insurance uses a streamlined underwriting process. It is possible to buy this type of insurance without receiving a medical exam, blood work, or inspection reports, meaning it’s a great option for people with pre-existing conditions.

Additionally, simplified issue disability insurance doesn’t require financial documentation. For many people who work a salaried job, providing financial documentation shouldn’t be an issue. However, for people in more unusual situations, skipping this process might make obtaining insurance easier.

Overall, simplified issue disability insurance is a fast and convenient option for people who, for whatever reason, don’t want to deal with the normal underwriting process. Policies are often issued within 30 days.

However, there are downsides. Compared to individual disability insurance – which does involve medical underwriting – the coverage may be less comprehensive. The terms you receive may offer lower protection than you would gain from an individual disability insurance policy. This means that, if you may qualify for individual disability insurance, it may be worth going through the underwriting process. However, simplified issue disability insurance provides an alternative option and can be a great fit for some people.

simplified issue disability insurance
  • Social Security Disability Insurance: This is a government program funded by payroll taxes. Most applications are denied and the benefit amounts are modest.
  • Group Long-Term Disability Insurance: Some employers offer group LTD. The terms may be limited, and the coverage may not insufficient; however, you may also be able to supplement the coverage.
  • Guaranteed Standard Issue Insurance: This option may be available to employee groups of five or more. Learn more.
  • Individual Disability Insurance: To buy IDI, you’ll need to undergo medical underwriting and income verification. If you’re worried about the process, talk to an experienced insurance agent. They may have some creative solutions.

Other Disability Insurance Options for People with Pre-Existing Conditions

If you need disability insurance but you’re worried about medical underwriting, simplified disability insurance may be your best option. However, you may be considering other coverage options:disability insurance for self employed

Other Disability Insurance Options for People with Pre-Existing Conditions

If you need disability insurance but you’re worried about medical underwriting, simplified disability insurance may be your best option. However, you may be considering other coverage options:

  • Social Security Disability Insurance: This is a government program funded by payroll taxes. Most applications are denied and the benefit amounts are modest.
  • Group Long-Term Disability Insurance: Some employers offer group LTD. The terms may be limited, and the coverage may not insufficient; however, you may also be able to supplement the coverage.
  • Guaranteed Standard Issue Insurance: This option may be available to employee groups of five or more. Learn more.
  • Individual Disability Insurance: To buy IDI, you’ll need to undergo medical underwriting and income verification. If you’re worried about the process, talk to an experienced insurance agent. They may have some creative solutions.
simplified issue disability insurance

People Are Taking a Big Risk Going Without Coverage

Insurance underwriting is no fun. Unfortunately, many people avoid purchasing disability income coverage just because they don’t want to deal with underwriting process. They may think they won’t meet the medical underwriting requirements, be worried about providing financial documentation because their situation is complicated, or just be busy. Simplified issue disability insurance provides an alternative.

Insurance professionals can help by offering simplified issue disability insurance to clients when it makes sense for them.

 

disability insurance The DI Stat Pack shows why disability insurance is necessary.

disability insurance This Article explains when and why you should suggest simplified issue disability insurance.

disability insurance The waiver of liability form helps clients see the importance of coverage while providing you with liability protection.

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