Updated: May 22, 2024
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Simplified issue life insurance doesn’t require a medical exam. This makes it a good fit for people with serious health complications or those who dislike invasive medical exam procedures.
Applicants do still have to answer some health questions. This type of life insurance is typically more expensive than policies that require a medical exam but may be the only type of life insurance that people with serious health issues qualify for.
Simplified issue life insurance is a type of life insurance that does not require a medical exam.
This type of life insurance is usually more expensive than other life insurance policies that require medical exams.
While simplified issue life insurance doesn’t require an exam, insurers may still reject applicants.
Unlike traditional life insurance policies, insurers often accept simplified life insurance applications more quickly since the underwriting process is relatively simple. Your application for a policy will likely be accepted if you pass the health questionnaire and the insurer's requirements.
Simplified issue life insurance policies often come with higher life insurance rates than traditional policies and tend to feature lower coverage amounts, starting at just $2,000 and rarely exceeding $100,000.
Simplified issue life insurance streamlines the path to securing coverage by eliminating the medical exam from the application process. Applicants complete a health questionnaire, and if the responses meet the insurer's criteria, approval can often be obtained swiftly, typically within days.
While there's no guarantee that the insurer will accept your application, simplified issue life insurance is often a good fit for people whose health issues might prevent them from qualifying for a traditional life insurance policy or individuals needing immediate coverage. Below, we highlight the most important features for you to be familiar with before choosing this type of policy.
Easy application
The underwriting process for this life insurance type is simple since no medical exam is required. Applicants must answer a few health and medical history questions by filling out a short health questionnaire.
Quick approval
Unlike traditional life insurance policies, which can take weeks or even months to approve applications, simplified issue life insurance policies have a fast approval time. Applicants can typically expect to receive a decision within 48 hours, and some insurers even offer instant results.
Term or whole life
Unlike guaranteed acceptance insurance, which only takes the form of a whole life insurance policy, simplified issue life insurance can take the form of a term or whole life insurance policy. Term life insurance covers the applicant only for a specified time and tends to be more affordable. In contrast, whole life insurance covers policyholders for life as long as they continue to pay monthly premiums.
Lower value for money
While there are some benefits to simplified issue life insurance, it tends to have a lower value than a conventional policy. Coverage amounts start as low as $2,000 and rarely exceed $100,000, while traditional policies can provide coverage in the hundreds of thousands or even millions.
While there’s no medical exam required for this type of policy, applicants must still answer some questions about their health. These include whether you need assistance completing daily tasks, whether you have health concerns like HIV or cancer and whether you have a terminal illness.
Health Detail | Description |
|---|---|
Terminal medical conditions | Applicants must disclose whether they have any terminal medical conditions or end-stage diseases. Typically, applicants will receive a rejection if they have less than two years of life expectancy. |
Driving history | Applicants must answer several questions about their driving history within the past two years, including whether they have two or more moving violations or have been convicted of reckless driving or driving while under the influence of drugs or alcohol. |
License suspension or revocation | Applicants must also disclose whether their license was suspended or revoked in the past five years. |
Probation | Applicants must disclose if they’re on probation or have been on probation within the past year. |
Felonies | Applicants must answer questions concerning felony convictions or guilty pleas in the past seven years. |
Cancer, heart attacks or strokes | The health questionnaire will also ask applicants to answer questions about serious health complications such as cancer (excluding basal cell carcinoma), heart attacks or strokes in the past two years. |
Drug or alcohol abuse | The questionnaire will also ask applicants to disclose whether or not they suffer from alcohol or drug abuse for which they have received medical treatment. |
Alzheimer’s or dementia | Applicants must disclose if they have been diagnosed with conditions like Alzheimer’s or dementia. |
HIV or AIDS | Applicants must answer questions about their HIV status, including whether they’ve ever tested positive for HIV or been diagnosed with AIDS or ARC. |
Hospitalized or in assisted care | Patients must disclose if they are currently hospitalized, in a psychiatric facility or in extended or assisted care. |
Incarcerated | Applicants must answer questions about whether they’re currently in prison or a correctional facility. |
Receiving health care at home | The questionnaire will ask applicants to disclose whether they’re receiving at-home care or need assistance completing basic tasks like getting dressed and taking medication. |
Final expense insurance policies, such as simplified issue life insurance, tend to have higher premiums, especially considering the amount of coverage they provide.
Health questionnaires can give the insurer a partial picture of the risk involved when insuring an applicant but provide less information than a policy that requires a medical exam. Because applicants may be high risk, insurers protect themselves against this risk by charging higher premiums for this type of policy.
Beyond the health questionnaire, insurers also consider several other factors when determining rates for simplified issue life insurance:
Age
Age is a primary determinant of life insurance costs. Older applicants are likely to pay more for simplified issue life insurance due to the increased risk of health issues with age.
Gender
Life insurance rates can vary by gender, reflecting differences in life expectancy. Women may receive lower rates than men, given their longer average lifespan.
Tobacco Use
Smoking or using tobacco products significantly affects life insurance premiums. Insurers charge smokers higher rates because of the greater health risks associated with tobacco use.
Family Medical History
An applicant's family health history can influence rates. A history of hereditary conditions may lead to higher premiums.
Lifestyle
Engaging in high-risk hobbies or having a dangerous occupation can increase insurance costs. Insurers evaluate lifestyle factors to assess the level of risk they're insuring.
Policy Term and Amount
Insurers also consider the length of the policy term and the death benefit amount when setting rates. Higher coverage amounts or longer terms typically result in higher premiums.
Each of these factors contributes to the overall assessment of risk that an insurer undertakes when issuing a simplified issue life insurance policy, ultimately influencing the cost of premiums for the insured.
How much coverage do I actually need?
How much life insurance coverage you need depends on your situation. If you only need coverage to cover final expenses, such as funeral costs, then $10,000 might be sufficient. However, this lower coverage amount might not cover your family’s ongoing expenses after you die.
Higher coverage amounts translate to higher monthly premiums, so you should consider how much you can pay for life insurance each month. If you’re unsure what coverage amount makes sense for you, it’s a good idea to consult a financial advisor.
While seniors make up the majority of applicants for simplified issue life insurance, people of any age with serious health complications may want to consider a simplified issue life insurance policy.
If you're worried about the potential rejection of your application for traditional life insurance, consider applying for simplified issue life insurance. It can be cheaper than guaranteed acceptance life insurance, making it an efficient option for coverage. That said, simplified issue life insurance may not be the right fit for everyone, and applicants who qualify for traditional policies may get a better deal for a higher amount of coverage.
The main benefits of simplified issue life insurance are that it’s easy to apply, insurers typically accept applications within a few days of submission, and the application process doesn’t require a medical exam.
These features make simplified issue life insurance ideal for applicants whose health conditions may disqualify them from a traditional policy, buyers who need immediate life insurance coverage and those who want to steer clear of medical examinations.
Simplified issue life insurance offers a solution for those who face obstacles or have specific preferences when it comes to obtaining life insurance. Below are some scenarios when buying this type of policy may make sense.
Simplified issue life insurance may be a better fit for applicants with serious health issues. The type of life insurance doesn’t require a medical exam but does ask applicants to fill out a short health questionnaire, making it easier to get approved.
For applicants who don’t like medical exams, simplified issue life insurance provides an alternative to traditional life insurance policies, which typically require one.
Simplified issue life insurance usually comes with a lower death benefit of under $100,000 and can be as low as $2,000. This makes it a good fit for people who may not want a higher amount of coverage but are interested in a benefit high enough to pay for final expenses like funeral costs.
While traditional life insurance applications can take weeks or even months to be approved, simplified issue life insurance policies are usually approved within a day or two and may even be approved immediately upon submitting your application.
Simplified issue life insurance is not a one-size-fits-all solution. Certain individuals may find that the drawbacks outweigh the benefits, making other insurance products more suitable for their needs.
Those in excellent health with no significant medical issues may benefit from lower premiums offered by traditional policies that include a medical exam.
If you require a policy with a death benefit exceeding $100,000, simplified issue life insurance may not meet your financial protection goals.
For those prioritizing cost, there might be more economical choices than the higher premiums associated with simplified issue life insurance compared to medically underwritten policies.
Younger individuals, who typically have fewer health concerns and qualify for lower rates, might find better value in traditional life insurance policies.
If you've never applied for life insurance, you may want to first apply for a conventional life insurance policy. This life insurance policy is usually much cheaper and features higher coverage amounts. Traditional life insurance provides a better value for the cost, so it's likely the best place to start.
If you cannot secure a traditional life insurance policy for whatever reason, simplified issue life insurance is a good backup plan. When applying for simplified issue life insurance, look for simplified issue life insurance policies that feature low premiums and adequate coverage amounts.
Insurers are within their rights to accept or reject any applicant for simplified issue life insurance. If you receive a denial on your simplified issue life insurance application and still need coverage, you can opt for a guaranteed acceptance life insurance policy.
Guaranteed acceptance life insurance accepts all applicants and doesn't require an exam or health questionnaire. Most guaranteed acceptance policies have high monthly premiums and a low death benefit. That said, they may still be an option worth considering for those unable to purchase other life insurance policies.
You can also consider the following alternative options:
Consider which option fits your profile and financial needs when seeking life insurance alternatives.
Since there are several different types to choose from, choosing the best life insurance policy for you can sometimes be a little confusing. We’ll cover some of the most commonly asked questions surrounding simplified issue life insurance.
As the name suggests, simplified issue life insurance is a type of life insurance policy that features an easier application process and less complicated underwriting process. Applicants aren’t required to take a medical exam, and you typically receive approval in just a few days.
The cost for a simplified issue life insurance policy varies widely depending on your health and personal details like age and gender. Simplified issue life insurance policies tend to be significantly more expensive than traditional life insurance policies.
Simplified issue life insurance health questionnaires typically ask about health issues and related concerns, such as terminal illness, heart attacks, stroke, cancer, DUIs and other driving violations, probation or incarceration and whether you’re currently hospitalized or receiving at-home medical care.
Simplified issue life insurance tends to be much more expensive than traditional life insurance, so it's typically a last resort option. However, it may be the best option if you don't qualify for a traditional life insurance policy.
About Mark Fitzpatrick
Mark Fitzpatrick has analyzed the property and casualty insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. Currently, he leads P&C insurance content production at MoneyGeek. Fitzpatrick has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.
Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.
