When I sit down with clients who are exploring their life insurance options, simplified issue term life insurance often comes up as an attractive middle ground. It’s faster than fully underwritten coverage but more accessible than guaranteed issue policies—making it a sweet spot for many families who need coverage without the lengthy approval process.
For a complete overview, see our complete guide to term life insurance.
Let me walk you through everything you need to know about simplified issue term life insurance, including when it makes sense, what to expect, and how it compares to your other options.
What Is Simplified Issue Term Life Insurance?
Simplified issue term life insurance is a type of coverage that requires you to answer health questions but doesn’t require a medical exam, blood work, or urine tests. Think of it as the middle child between fully underwritten policies (which require extensive medical underwriting) and guaranteed issue policies (which ask no health questions at all).
Here’s how it typically works:
- Application process: You’ll answer 8-15 health questions on the application
- No medical exam: No need to schedule a nurse visit or go to a clinic
- No lab work: No blood draws or urine samples required
- Quick approval: Most decisions are made within 24-72 hours
- Limited coverage amounts: Usually available up to $250,000-$500,000
The insurance company uses your answers to the health questions, plus automated databases that check your prescription history and medical records, to make an approval decision.
How Does the Application Process Work?
When I help clients with simplified issue applications, the process is refreshingly straightforward compared to traditional underwriting.
The Health Questionnaire
You’ll answer questions like:
- Have you been hospitalized in the past two years?
- Do you currently take medication for heart disease, diabetes, or cancer?
- Have you been diagnosed with any chronic conditions?
- Do you use tobacco products?
- Have you ever been declined for life insurance?
The key here is complete honesty. Insurance companies have access to prescription databases and medical information bureaus, so they’ll likely discover any conditions you don’t disclose.
Behind-the-Scenes Verification
While you’re not taking a medical exam, the insurance company is still doing homework:
- Prescription database check: They’ll see what medications you’ve filled
- Medical Information Bureau (MIB) check: Reviews your insurance application history
- Sometimes a phone interview: A nurse may call to clarify answers or ask follow-up questions
Quick Decisions
Most simplified issue applications are approved, declined, or referred for full underwriting within 1-3 business days. It’s a much faster process than traditional underwriting, which can take 4-6 weeks.
Who Is Simplified Issue Term Life Right For?
In my experience, simplified issue term life insurance works best for specific situations:
Good Candidates
People with minor health issues: If you have well-controlled conditions like mild high blood pressure, acid reflux, or anxiety managed with medication, simplified issue might approve you when guaranteed issue would be overkill.
Busy professionals: If you travel frequently or have a schedule that makes medical exams difficult, simplified issue eliminates that hassle.
Needle-phobic individuals: Some people genuinely can’t handle blood draws. Simplified issue removes that barrier.
Those who need coverage quickly: Maybe you just had a baby, bought a house, or started a business. When time matters, simplified issue delivers.
Not the Best Fit
Very healthy individuals: If you’re in excellent health, you’ll likely get better rates with fully underwritten coverage. The medical exam and lab work will actually help you by proving your good health.
Those needing large amounts: Most simplified issue policies cap out around $250,000-$500,000. If you need $1 million or more, you’ll need fully underwritten coverage.
People with serious health conditions: If you have major conditions like recent cancer, heart disease, or diabetes complications, you might not qualify for simplified issue and should consider guaranteed issue instead.
Simplified Issue vs. Other Types of Life Insurance
Let me break down how simplified issue compares to your other options:
Simplified Issue vs. Fully Underwritten
| Factor | Simplified Issue | Fully Underwritten |
|---|---|---|
| Medical exam | No | Yes |
| Health questions | 8-15 questions | Extensive questionnaire |
| Approval time | 1-3 days | 4-6 weeks |
| Coverage amounts | Up to $250K-$500K | Up to $50 million+ |
| Cost | Higher premiums | Lower premiums (if healthy) |
| Health requirements | Moderate | Can be very flexible with ratings |
Simplified Issue vs. Guaranteed Issue
| Factor | Simplified Issue | Guaranteed Issue |
|---|---|---|
| Health questions | Yes | No |
| Approval certainty | Not guaranteed | Guaranteed (within age limits) |
| Coverage amounts | Up to $250K-$500K | Usually $5K-$25K |
| Waiting period | None | Usually 2-3 years |
| Cost | Moderate | Highest |
| Age limits | Usually 18-65 | Usually 50-85 |
What Health Conditions Can Simplified Issue Accept?
This is where simplified issue really shines—it can often approve conditions that might surprise you. Here’s what I’ve seen approved:
Commonly Accepted Conditions
- High blood pressure (well-controlled with medication)
- High cholesterol (managed with statins)
- Acid reflux/GERD
- Anxiety or mild depression (stable on medication)
- Arthritis (osteoarthritis, not rheumatoid)
- Kidney stones (if not recent)
- Sleep apnea (using CPAP)
- Remote cancer history (usually 3+ years cancer-free)
Conditions That Often Lead to Decline
- Recent hospitalizations (within 12-24 months)
- Current cancer treatment
- Heart disease or recent heart attack
- Insulin-dependent diabetes
- COPD requiring oxygen
- Liver disease or cirrhosis
- Kidney disease or dialysis
- Multiple serious conditions combined
Remember, every carrier has different guidelines, so what one company declines, another might approve.
How Much Does Simplified Issue Term Life Cost?
The trade-off for convenience and speed is cost—simplified issue term life insurance typically costs 10-30% more than fully underwritten coverage for the same person.
Sample Monthly Rates (Healthy 35-Year-Old Male, $250,000 Coverage)
- Fully underwritten 20-year term: $18-22/month
- Simplified issue 20-year term: $22-28/month
- Guaranteed issue: $45-65/month
The exact premium depends on:
- Your age and gender
- Coverage amount and term length
- Health questionnaire answers
- The insurance company’s pricing
Is the Extra Cost Worth It?
That depends on your situation. If you’re in excellent health and have time for the full underwriting process, the savings from fully underwritten coverage add up over 20-30 years. But if you need coverage quickly or can’t qualify for fully underwritten rates due to health issues, the extra cost might be worth the convenience and accessibility.
Tips for Applying for Simplified Issue Term Life
After helping hundreds of families with simplified issue applications, here are my best tips:
Be Completely Honest
I can’t stress this enough—any attempt to hide health information will backfire. Insurance companies have sophisticated databases and will discover undisclosed conditions. If they find you weren’t truthful, they can void your policy entirely.
Gather Your Information First
Before starting the application:
- List all medications you take (including over-the-counter)
- Know the dates of any hospitalizations or surgeries
- Have your doctors’ names and contact information ready
- Remember any conditions you’ve been diagnosed with, even if you don’t think they’re serious
Don’t Wait Too Long
If you’re on the fence between simplified issue and fully underwritten, remember that your health can change quickly. A new diagnosis could knock you out of simplified issue eligibility and into guaranteed issue territory, which is much more expensive.
Work with an Independent Agent
This is where working with someone like me makes a real difference. Different carriers have different appetites for different conditions. What one company declines, another might approve at standard rates. As an independent agent, I can shop your application to multiple carriers to find the best outcome.
Common Mistakes to Avoid
Assuming You Won’t Qualify
I’ve had clients who thought they had too many health issues for simplified issue, only to be approved at standard rates. Don’t disqualify yourself—let the insurance company make that decision.
Not Comparing Multiple Carriers
Carrier guidelines vary significantly. Company A might decline someone for sleep apnea while Company B approves them. This is why working with an agent who represents multiple carriers is so valuable.
Waiting for “Perfect” Health
Some people postpone applying because they want to lose weight, quit smoking, or get a health condition under better control first. While these improvements can help, they take time—and your health could worsen while you’re waiting. Sometimes it’s better to get coverage now and potentially reapply later for better rates.
Choosing Coverage Amount Based Only on Simplified Issue Limits
Don’t let the coverage limits of simplified issue determine your actual insurance needs. If you need $750,000 in coverage but simplified issue only offers $250,000, consider combining a simplified issue policy with a fully underwritten policy, or just go the fully underwritten route entirely.
When to Consider Alternatives
Simplified issue isn’t always the best choice. Here are situations where other options might work better:
Consider Fully Underwritten If:
- You’re in excellent health
- You need more than $500,000 in coverage
- You have time for the longer process
- You want the lowest possible premium
Consider Guaranteed Issue If:
- You’ve been declined for simplified issue
- You have serious health conditions
- You’re older (typically 50+) and mainly need final expense coverage
- You need coverage certainty regardless of cost
- Answer health questions completely honestly on simplified issue applications since insurers verify your information through prescription databases and medical records, making dishonesty counterproductive.
- Expect approval decisions within 24-72 hours for simplified issue policies, making this option ideal when you need coverage quickly without medical exams or lab work.
- Consider simplified issue if you have minor, well-controlled health conditions like mild high blood pressure or anxiety, as it offers more accessible coverage than fully underwritten policies.
- Understand that coverage amounts are typically limited compared to fully underwritten policies, so evaluate whether the available coverage limits meet your family’s financial protection needs.
- Choose simplified issue when your schedule makes medical exams difficult or impractical, as this option eliminates the need for nurse visits, blood draws, and clinic appointments.
The Bottom Line
Simplified issue term life insurance fills an important gap in the life insurance market. It provides a faster, more accessible path to coverage for people who might struggle with fully underwritten policies but don’t want to pay guaranteed issue prices.
The key is understanding where you fit in that spectrum. If you’re healthy, have time, and want the best rates, go fully underwritten. If you have serious health issues and just need some coverage, guaranteed issue might be the answer. But if you’re somewhere in the middle—maybe you have some minor health issues, need coverage relatively quickly, or want to avoid medical exams—simplified issue could be the perfect solution.
Remember, having some life insurance is always better than having none. Even if simplified issue costs a bit more than you’d like, it’s providing financial protection for your family from day one.
Finding the right life insurance doesn’t have to be complicated. As an independent agent, I work with multiple top-rated carriers and can help you compare options to find the best coverage at the best price.
Related Reading
- Life Insurance for Parents: The Complete Guide
- Life Insurance for High Risk Individuals: The Complete Guide
- Life vs Term Life Insurance: Complete Comparison
- 30 Year Term Life Insurance: The Complete Guide
Let me do the shopping for you. I’ll compare quotes from multiple companies and help you find coverage that fits your needs and budget—whether that’s simplified issue, fully underwritten, or guaranteed issue coverage.
