Simplified Issue Life Insurance
Simplified issue life insurance policies don’t require a physical medical exam as part of the application process. You might also see these referred to as “No medical exam life insurance” policies.
Many term life insurance and permanent life insurance policies require a medical exam, and the results of the exam can determine your policy rates and whether you are issued a policy at all. Simplified issue life insurance lets you apply for a policy without having to worry about a medical exam that could include a blood draw.
You may be asked to answer a few general questions about your health as part of the application process. Issuance of the policy may depend upon answers to the health questions set forth in the application.
The questions you may be asked when applying for a simplified issue life insurance policy will typically relate to terminal illnesses (such as HIV or AIDS) and chronic conditions (such as diabetes). You may also be asked about your medical history and your drug, alcohol and tobacco use, among other health factors.
Who Can Benefit From Simplified Issue Life Insurance?
Simplified life insurance might be a good fit for anyone who is interested in obtaining life insurance coverage but doesn’t want to deal with a medical exam.
The policy death benefit can be used for any number of reasons, such as to help cover your final expenses or medical costs, send a grandchild to college or however else your beneficiary chooses. It’s important to note that the death benefits with simplified issue life insurance policies are usually lower than those with fully underwritten policies.
Because of its less-detailed underwriting, simplified issue life insurance policies can typically be approved faster than many other types of life insurance. This factor can make simplified issue life insurance policies a good fit for business partnerships, divorce settlements or any other situation in which a life insurance policy needs to be issued more quickly than with traditional term or permanent life policies.
Simplified issue life insurance can also be an option for people who have a fear of needles or who dislike going to the doctor for full medical exams.
Simplified Issue Life Insurance vs. Guaranteed Acceptance Life Insurance
Guaranteed acceptance life insurance is similar to simplified issue life insurance in that it requires no physical examination as part of the application process. Guaranteed acceptance life policies, however, don’t require you to answer health questions. Therefore, your health has no bearing on the cost of your premiums.
Because there is no underwriting in the application process for guaranteed issue policies, they might be a good fit for people who are older or are in poor health and can’t get approved for other types of coverage. Guaranteed acceptance life insurance death benefits are even lower than those with simplified issue policies.
How Much Does Simplified Issue Life Insurance Cost?
Because simplified issue life insurance policies don’t require the full medical underwriting process, they typically include a lower death benefit than other types of life insurance policies that do require a medical exam.
Many simplified issue life insurance policies may offer coverage amounts of around $100,000 or less, though coverage amounts will vary based on your policy and your insurance provider. Some insurance carriers may offer higher benefit amounts.
Simplified issue life insurance policies may have higher premiums per dollar of coverage than some other types of life insurance coverage, due largely to the fact that lesser underwriting requirements are involved in the application. Simplified issue policies will typically have lower premiums per dollar of coverage than guaranteed acceptance life insurance.
Is Simplified Issue Life Insurance Right For You?
If you want life insurance coverage quickly with dealing with a medical exam, simplified issue life insurance could be a good option for you to consider.
You can typically take a short health questionnaire to receive a quote for a simplified issue life insurance policy and compare that to your quotes for other types of life insurance to see which one is more affordable and a good fit for you.