Home Life insurance Life insurance questions What is simplified issue life insurance? What is simplified issue life insurance? Written by Huma Naeem | Reviewed by Nupur Gambhir Nupur Gambhir Nupur Gambhir is an insurance expert and managing editor of Insure.com. She specializes in life and health insurance content, and has experience as a marketing consultant. | Updated on: July 12, 2023 Why you can trust Insure.com Quality Verified At Insure.com, we are committed to providing the timely, accurate and expert information consumers need to make smart insurance decisions. All our content is written and reviewed by industry professionals and insurance experts. Our team carefully vets our rate data to ensure we only provide reliable and up-to-date insurance pricing. We follow the highest editorial standards. Our content is based solely on objective research and data gathering. We maintain strict editorial independence to ensure unbiased coverage of the insurance industry. Getting a life insurance policy typically involves an extensive application process that asks you about your medical history and lifestyle choices to determine how much you pay for coverage. But if you have a serious health condition or any other qualifier that the insurance company deems as too risky, you may not be eligible for coverage. In that case, you may opt for a type of final expense insurance called simplified issue life insurance. This policy offers less coverage and is more expensive than traditional life insurance, but is a good alternative for people who can’t get traditional life insurance. Read on to learn more about what simplified life insurance is, how it works, and if you need it. What is simplified issue life insurance? Simplified issue life insurance is a type of final expense insurance, which lasts your entire life as long as you pay the premiums. All final expense policies offer lower coverage than traditional life insurance and charge higher premiums. It’s generally for people who are above the age of 45 and in too poor health to get a traditional life insurance policy. Getting a policy doesn’t require a medical exam, though there is a medical questionnaire. Barring a few key factors, most people are eligible. But you will not be able to get coverage if there are some extenuating circumstances that the insurer deems as too risky, such as a terminal illness or a cancer diagnosis within the last two years. If you are unable to get simplified issue life insurance, then you can opt for guaranteed issue life insurance. Coverage for guaranteed issue is pretty much guaranteed, though rates are even more expensive and coverage provided is even lower. How does simplified issue life insurance work? Once you get a simplified issue life insurance policy, it is active for the rest of your life, as long as you pay the premiums. Many simplified issue life insurance policies have a graded death benefit, which means the policy needs to be active for at least two years before your beneficiaries can receive any of the life insurance money. If the policyholder dies within two years of purchasing the policy, then the beneficiaries won’t receive any life insurance money. Advantages and disadvantages of simplified issue life insurance Like all policies, simplified issue life insurance comes with its own set of advantages and disadvantages. Advantages of simplified issue life insurance Accessibility: Simplified issue life insurance provides a life insurance option and financial protection for people who can’t get traditional life insurance due to pre-existing health conditions or other factors. Easy application process: Unlike traditional life insurance policies that involve extensive underwriting, simplified issue life insurance only requires a set of health-related questions, making it faster and easier to obtain coverage. Quick Approval: With simplified issue life insurance, the approval process happens within days, while traditional policies that require a medical exam can take weeks. No medical exam: Simplified issue policies do not require applicants to take a medical exam. Disadvantages of simplified issue life insurance High premiums: Compared to traditional life insurance policies, simplified issue policies cost a lot more. This is because they rely on limited medical information and have a higher level of risk for the insurance company. Coverage limitations: Simplified issue life insurance policies offer lower coverage than traditional life insurance, generally maxing out at $50,000. Coverage. Policies also have a waiting period of two years before the full death benefit is payable. Limited options: Simplified issue life insurance does not offer the same level of flexibility and customization as traditional policies. Policyholders may have fewer options for riders or additional coverage enhancements that can be tailored to their specific needs. Not guaranteed: While simplified issue life insurance offers coverage to some applicants who would otherwise not be eligible for life insurance coverage, not everyone is eligible. QuickTake What is term life insurance and how does it work? What is final expense insurance and how does it work? Types of life insurance How much term life insurance costs No-medical-exam life insurance: What it is and how it works What is instant life insurance? Permanent life insurance: What it is and how it works The different types of term life insurance policies explained What is universal life insurance? 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Simplified issue coverage offers up to $50,000 in coverage and while most applicants are eligible, people with certain health conditions may not be. For example, someone who received an alzheimers diagnosis may not be able to get a simplified life insurance policy. Guaranteed life insurance, on the other hand, is pretty much guaranteed. Even if you have a diagnosis that makes you ineligible for simplified issue life insurance, you will likely be able to get guaranteed issue coverage. However, because insurers are taking on even more risk with this type of policy, it is a lot more expensive than simplified issue life insurance. Additionally, guaranteed issue life insurance offers less coverage than simplified issue life insurance. It usually maxes out at about $25,000. Who should get simplified issue life insurance? Simplified issue life insurance is best for people who aren’t eligible for traditional life insurance due to their health or other factors. While it doesn’t offer much coverage and isn’t cost competitive, it provides some financial protection for your family after you die. But, it usually isn’t enough. If you are eligible for traditional life insurance, then you will be able to get more coverage at a lower cost. × Get Free Life Insurance Quotes Today! Zip Code Please enter valid zip Age Age 16 – 20 21 – 24 25 – 34 35 – 44 45 – 54 55 – 64 65+ Coverage Amount Coverage Amount $50,000 – $100,000 $100,000 – $200,000 $200,000 – $300,000 $400,000 – $500,000 $500,000 – $1,000,000 $1,000,000 – $2,000,000 $2,000,000 – $5,000,000 $5,000,000+ Coverage Type Coverage Type Whole Life Term Life Final Expense Not Sure Gender Gender Male Female Non-Binary Tobacco Use Yes No Compare Quotes Related Articles What happens to the cash value of my whole life insurance policy when I die? By Nupur Gambhir Can you cash in a paid up life insurance policy? By Les Masterson Can someone take out a secret life insurance policy on you? By Desiree Ghazi Can you change the coverage of your term life insurance? By Insure .com Can you cash in a life insurance policy to pay off debt? By Barbara Marquand Can I withdraw money from my life insurance policy? By Desiree Ghazi On this page What is simplified issue life insurance?How does simplified issue life insurance work?Advantages and disadvantages of simplified issue life insuranceHow simplified issue life insurance compares to guaranteed issue life insuranceWho should get simplified issue life insurance? ZIP Code Please enter valid ZIP See rates