Simplified Issue Life Insurance
Simplified Issue Life Insurance policies don’t require a medical exam as part of the application process. Traditional Term Life Insurance and Permanent Life Insurance policies require a medical exam in order to determine how much risk the insurance company takes on by issuing you a policy. When applying for Simplified Issue Life Insurance, you don’t have to worry about this requirement.
Simplified Issue Life Insurance policies typically require answers to a few general health questions. Issuance of the policy may depend upon answers to the health questions set forth in the application.
Guaranteed Acceptance Life Insurance policies are similar to Simplified Issue policies, though they don’t require health questions. Guaranteed Acceptance Life Insurance policies will often have higher premiums than Simplified Issue Life Insurance policies, but both types will typically have higher premiums than fully-underwritten life insurance.
If you are considering life insurance and want to find a policy that has an easy application and no medical exam, then a Simplified Issue Life Insurance policy could be a good fit for you. Because these policies aren’t fully underwritten by the insurance company, they typically include a lower death benefit than other policies that do require a medical exam.
Many people who consider Simplified Issue Life Insurance are adults who want quick policy approval and don’t have any major health issues that would keep them from qualifying for a policy, but may have reservations about taking a paramedical exam.
Typically, these policies will offer lower coverage amounts, with many topping out around $100,000. Life insurance death benefits can be used by your beneficiaries to help pay for expenses such as your outstanding medical bills and your funeral costs. However, ultimately a beneficiary may use the death benefit however they wish.