Life Insurance - What Is Simplified Issue?

What is Simplified Issue Life Insurance? (Also known as a "No Medical Exam Policy")

A simplified issue application generally only requires you to answer a relatively short set of health questions, instead of having to additionally complete a required Medical Exam (also known as a Paramed Exam) in order to be approved for traditional life insurance.
If you truthfully answer the Simplified Issue questions and all your answers, etc. meet the insurance company’s guidelines, once information is verified, you may be approved in a short amount of time.

Can anyone buy simplified issue life insurance?

No. You will need to truthfully answer knockout questions as part of a set of health questions on the application, such as whether you are in a wheelchair, or if you have a disability or have you been recently diagnosed with a serious disease like cancer or HIV. You will also still need to fall within the insurance company’s underwriting guidelines with other factors as well as such as height, weight, etc. Note: Even though it is a simplified policy, the insurer has the right to look up your existing and past medical records to verify you are telling the truth.

Some of the advantages of Simplified Issue:

  • No Medical exam required. (Ex. If you don’t like nurse/doctor visits or your blood drawn)

  • Since no major research needs to be completed by the underwriting department after a paramed exam, as with traditional life insurance underwriting, these Simplified Issue type of policies can be approved in a lot shorter amount of time. (Ex. You don’t want to wait the normal average of 4-8 weeks for an approval as you do with traditional life insurance.)

  • Generally offer higher death benefits than Guaranteed Issue policies and at lower premiums.

  • Convenience (No scheduling an appointment for a Medical Exam.)

  • Privacy (Without a Medical Exam, no nurse needs to come to your home or office to examine you.)

Some of disadvantages of Simplified Issue:

  • Premiums generally are more expensive than traditional life insurance, since the insurance companies are assuming more risk without a Full Medical Exam on a Simplified Issue type of policy.

  • Limited number of companies or policies that offer Simplified Issue.

  • Limited coverage. (Generally a standardized cookie cutter coverage. You won’t have as much flexibility to customize your policy as with a traditional life insurance policy.)

  • Death benefit amount is generally limited to a certain maximum amount determined by the insurance company. (Much less than traditional life insurance.)

  • Keep in mind even with Simplified Issue, depending on your answers to your medical questions, whether you meet their other guidelines, etc., approvals are not guaranteed. You will still need to meet the Insurance company’s underwriting guidelines in order to be approved.

For those of you that don’t qualify for Simplified Issue Life Insurance due to health issues, etc., you can still purchase Guaranteed Issue Life Insurance.
Call me at 941-404-5334 if you have concerns and still want to purchase life insurance.

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Note: Life Insurance information can be confusing to many people. As an "independent licensed agent" I can explain things to you in simple terms so you feel comfortable making a decision. Then I can help you choose a life insurance policy, from many choices of different insurance companies, that you feel fits your needs. Plus if you choose to work with me you will have personalized service by a local agent that can shop premium quotes for you. If you would like my assistance to discuss and/or start the process of getting you insured please call me at 941-404-5334.