What Is Simplified Issue Life Insurance?

Why it matters

Simplified issue sits between guaranteed issue and full underwriting. It is faster than a fully underwritten policy and often cheaper than guaranteed issue. Carriers check prescription history and MIB records after the application, and some still use a graded benefit. Face amounts are lower than fully underwritten policies. Answer every health question honestly, since a misstatement can cause a claim denial during the contestability period. Rules and rates vary by carrier.

Source: naic.org

Where we use this term

Related terms

Guaranteed Issue Life Insurance: Guaranteed issue life insurance is coverage that accepts applicants without health questions or a medical exam. Approval is guaranteed within the age limits, but the face amount is small and a waiting period usually applies.
Fully Underwritten Life Insurance: Fully underwritten life insurance is coverage approved after a detailed review of the applicant's health, history, and records. It may include a medical exam, lab tests, and an attending physician statement.
No-Exam Life Insurance: No-exam life insurance is coverage issued without a medical exam. Types include simplified issue, guaranteed issue, and some accelerated underwriting programs. Each uses a different method to judge risk.
Health Questions (Knock-Out Questions): Health questions are the application questions a carrier asks about medical history. Knock-out questions are the ones where a yes answer makes the applicant ineligible for that plan.
Prescription History Check (Rx) (Rx): A prescription history check is an underwriting step where the carrier reviews a database of past prescriptions filled by the applicant. It helps confirm health answers and find conditions.

All 241 terms

Why it matters

Where we use this term

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