It is life insurance with no medical exam. You answer a few health questions, and if approved, coverage can often start the same day.
You skip the exam and lab tests. You still answer a health questionnaire.
The insurer still checks records. It looks at your MIB file, prescription databases and driving record.
Coverage is smaller. Most simplified issue term policies offer $100,000 to $250,000. People over 55 are often capped at $100,000.
It costs more than a fully underwritten policy. You pay for the speed and the skipped exam.
You can still be turned down. That is different from guaranteed issue, which accepts everyone.
More questions
Who is it good for?
People who want coverage fast or do not want an exam. Healthy people may pay less with a full exam.
What is guaranteed issue?
It asks no health questions and accepts anyone. Policies are small, and the price is much higher.
Is there an age limit?
It depends on the company. Some offer it up to age 85.
Words to know
- Guaranteed issue
- A policy for people with health issues who may not qualify for other coverage. Very few people are turned down.
- Simplified issue
- A policy with a short application and limited health information. It usually costs less than guaranteed issue, but more than fully underwritten coverage.
