Simplified issue life insurance is a type of coverage that requires no medical exam during the application process. Instead of a physical exam with blood and urine samples, applicants answer a series of health questions on the application. The carrier uses these answers, along with information from databases like the Medical Information Bureau (MIB) and prescription drug records, to make an underwriting decision. This streamlined process can result in faster approval, sometimes within days.
Simplified issue policies are available as both term and permanent life insurance, with death benefits typically ranging from $25,000 to $500,000 depending on the carrier and product. Premiums for simplified issue policies are generally higher than fully underwritten policies with the same coverage amount, reflecting the carrier's acceptance of additional risk due to the less thorough health evaluation. However, they are typically less expensive than guaranteed issue policies, which accept all applicants.
The health questionnaire for simplified issue policies typically asks about serious conditions diagnosed in recent years, hospitalizations, current medications for specific conditions, tobacco use, and dangerous occupations or hobbies. A "yes" answer to certain questions may result in a decline, a modified offer, or referral to traditional underwriting. Each carrier's questions and criteria differ, which is why working with an agent who represents multiple carriers can be advantageous.
Simplified issue can be appropriate for individuals who want faster coverage without a medical exam, those with mild to moderate health conditions that might not qualify for preferred rates but are not severe enough to require guaranteed issue, and those who prefer a less intrusive application process. All coverage is subject to underwriting approval by the issuing carrier based on the health questionnaire and database information.