If you’re looking for a life insurance policy, you should know that some types of policies are easier to get than others. Simplified issue life insurance is one of those policies that is easier to get because no medical exam is required to be approved. The process to get simplified life insurance is simple and quick.
Compare Simplified Issue Life Insurance
Doing your research is a key component of purchasing the right life insurance policy. Benzinga offers reviews and insights on the following simplified life insurance providers. You may want to consider beginning your search for the right coverage using the links below.
- securely through Ladder Life Insurance's websiteBest For:Adjustable coverage
Ladder Insurance Services, LLC (CA license # OK22568; AR license # 3000140372) distributes term life insurance products issued by multiple insurers – for further details see ladderlife.com. All insurance products are governed by the terms set forth in the applicable insurance policy. Each insurer has financial responsibility for its own products. Coverage amounts vary by state.
What is Simplified Issue Life Insurance?
Simplified issue is a type of life insurance policy that requires minimal health questions to be answered before you get approved for coverage. This life insurance is designed for people who need a policy quickly or for those who do not wish to undergo a medical exam because of an underlying health condition that is likely to cause a life insurance company to deny them coverage. Simplified issue insurance is similar to guaranteed issue life insurance, but it has some health questions as opposed to no health questions on its application.
Simplified issue is designed for people who need insurance coverage quickly; the speed of coverage is facilitated by no medical exam. When a medical exam is not required to issue insurance coverage, the underwriting process is much simpler and faster. Coverage usually begins soon after the application is approved, which can minimize the process from 4 to 6 weeks down to just a few days.
Simplified issue is also designed for people who are older or have a health condition that would otherwise cause them issues when trying to get life insurance coverage. In lieu of a medical exam, those applying for simplified issue life insurance are required to fill out a short health questionnaire. The questionnaire allows the insurance company to perform a modified risk assessment and determine the premium amount and the death benefit amount.
Simplified issue insurance policies can be either term life or permanent life policies depending on what the insurance provider offers. A simplified issue term life policy will offer coverage for a certain period of time while a simplified issue permanent policy will offer coverage for the entirety of the insured’s life. Some insurance providers allow you to add riders to your simplified issue policy, which allows you to enhance or expand the death benefits or the coverage provided with the policy.
Who Needs Simplified Issue Life Insurance?
Simplified issue life insurance is a good insurance choice for people who are older. As you get older, you become more of a risk for insurance providers; therefore, it can become more difficult to get insurance or the premiums will be much higher if you are able to get coverage. Middle-aged customers may also need simplified issue life insurance. If you’re between the ages of 45 and 85 and you’re interested in shopping for life insurance coverage, you should at least consider a simplified issue policy.
Simplified issue life is also a good option for people who don’t wish to undergo a medical exam to get coverage. If you have an underlying health condition and need life insurance quickly, then you need simplified issue. You may also need simplified issue if you have a health condition but don’t need coverage urgently. Without a required medical exam, you will be approved for simplified issue even with a health condition. In addition, if you have been court-ordered to get life insurance or you’re in need of collateral for a loan, you can get simplified issue.
Drawbacks of Simplified Life Insurance
Short term: Simplified life insurance policies are typically term life policies; therefore, their coverage term is short. The “term” in the phrase “term life insurance” refers to the number of years when the policy is active; depending on the insurance policy that you choose and your budget, your term could be as short as 10 years. While some insurance providers allow for simplified permanent life policies, this is not the norm.
Higher prices: With a normal life insurance policy, the insurer takes a look at a number of different factors, including lifestyle, health and medical history to determine your premiums. For a simplified issue policy, the insurer only asks a few basic health questions. This feature means that you’re automatically considered higher risk due to the lack of a comprehensive look at your health. Insurance providers like to play it safe when it comes to the possibility that they will need to issue your death benefit, which means that the premiums on simplified life insurance coverage will be higher than standard policies that require a more in-depth application.
No chance to invest: Simplified life insurance policies are usually term policies, meaning that you won’t find the type of investment and savings components that you’ll usually have access to when you purchase a whole life insurance policy. The only investing you’re doing is investing in your loved one’s financial future once you’re gone, which means that these policies are not a suitable supplement for your retirement funds.
How to Get Simplified Issue Life Insurance Coverage
Compare prices online: Many major insurance providers offer simplified issue life policies online. You can check out a few different provider’s websites and compare their prices to find a policy and price that best suits you.
Reach out to an agent: Once you’ve found an insurance provider with a policy that seems to work best for you, you can reach out to an agent from that insurer. Once you connect with an agent, they will be able to offer advice, answer questions and help you start the application process.
Complete the short application: The application for a simplified issue policy is fairly quick and easy to complete. Without a medical exam, your only action is filling out a health questionnaire. The number of questions and the questions themselves vary from company to company. However, the questions typically pertain to whether you need assistance to do daily activities, if you’ve been diagnosed with certain conditions, information about your criminal history and driving record and whether you’ve been denied insurance coverage in the past. However, the health questionnaire may not be limited to these topics depending on the insurance provider that you work with.
Work with the agent to determine the best combination of terms and premiums: Once your application is completed, you can work with an agent to discuss terms and premium payments. At this point, you will be able to add any riders (if the insurance provider offers any for these types of policies).
Your Life Insurance Options
The many options in life insurance can get confusing. However, getting the right insurance doesn’t need to be a hassle. No matter if you decide that a term life or a whole life policy is the right choice for you, we recommend that you explore Benzinga’s list of life insurance articles to learn more about all of the options available to you.
Frequently Asked Questions
What are the three types of life insurance?
The three types of life insurance that are considered the main types of coverage are whole life, term life and universal life. Term life policies offer coverage for a certain period of time, referred to as the policy’s “term.” Whole life policies offer coverage for the insured’s whole life, meaning that a death benefit is always paid out, no matter when you die. These policies also include a cash value portion of the policy that you can access while you are still alive. Universal life policies are also a type of permanent life insurance similar to whole life, but they allow for more flexibility than a whole life policy.
What is a good life insurance type for seniors?
Guaranteed issue life insurance can be an appealing type of life insurance type for seniors because coverage is guaranteed no matter your age or condition of health. Seniors typically have declining health, so it may be difficult to get life insurance coverage with a standard policy that requires a health questionnaire or medical exam. In addition, age is a factor that insurance companies consider when looking at people applying for an insurance policy. While it may not happen, it is possible for an insurance company to decline coverage to somebody simply because they are a senior. This reality can make a guaranteed life insurance policy a strong choice for older men and women.
Benzinga crafted a specific methodology to rank life insurance. To see a comprehensive breakdown of our methodology, please visit our Life Insurance Methodology page.