How does simplified issue life insurance work?
Simplified issue term life insurance does what term life insurance does. It provides coverage for a certain length of time and pays out a certain benefit amount in the event of your death. Simplified issue term life insurance uses a simplified application process that lets you forgo a medical exam. Instead of an exam, you'll fill out a questionnaire to provide health-related information and other personal details like your name, age, height, weight, and where you live.
Since simplified issue life insurance doesn't require a medical exam, the approval process can be much faster. If you get approved and make your first policy payment, your coverage might begin minutes after you complete your application (depending on the insurer). The process is particularly fast if you apply for instant life insurance, a specific type of simplified issue policy.
However, you're not guaranteed approval just because the process is simplified. You might not qualify if you have certain medical issues or a high-risk occupation or hobby. Always be honest in a life insurance application — lying to obtain coverage or reduce your premium is considered life insurance fraud.
Choosing simplified term life insurance over traditional term life insurance
Simplified life insurance is faster to obtain, but it's not always the best option. Because the insurer may take on more risk by using a simplified approval process, the policy might cost more, include a smaller coverage amount, and have a shorter term. However, there are plenty of affordable, simplified issue options available. You can compare term life insurance rates to determine if the speed of approval will be worth any extra premium cost.
Simplified issue policies are often beneficial for healthy individuals who need a policy quickly or want to forgo the life insurance medical exam. If you're planning to travel, you're experiencing a gap in coverage, or you have a legal obligation, you may need life insurance quickly. Depending on the insurer and policy, you could have coverage within minutes to a few days, while a standard life insurance policy might take a month or more.