Simplified Issue Life Insurance

 

Simplified Issue Life Insurance means an application that is simple; no cup, no needles and no scales. The insurance company has set a rate on premiums that they are willing to offer the applicant with out full underwriting. In other words, if an applicant were to qualify, they would be able to obtain life insurance without a medical. They simply answer a few questions and as long as they qualify on paper, there’s an almost 100% chance the policy will be issued.

What is the advantage to this type of underwriting? It’s fast and easy and still very affordable.

What is the disadvantage? An applicant could possibly get a lower rate if they are willing to go through full underwriting. Other than that, there is not much of a difference.

Simplified issue policies can come in several flavors of term insurance, whole life and universal life insurance