Imagine a world where life insurance is just a simple phone call away, without having to undergo a tedious medical exam or spending weeks on end wondering if you’re ever going to get approved!

It sounds too good to be true. Well, think again!

There’s a secret club of life insurance policies that have made the whole process of qualifying for life insurance a whole lot easier, not to mention much less intimidating. The only problem is that not everyone’s going to be able to qualify for some of these “newer” type policies, and in some situations, the EASY way isn’t always going to be the BEST way for those who can!

So, buckle up and get ready to say goodbye to complicated forms and hello to a stress-free life insurance experience!

What we mean by EASY.

When we at IBUSA refer to an “Easy life insurance policy,” we are referring to the approval process for an individual. For us, this means obtaining life insurance coverage will have minimal requirements and a simplified underwriting process.

This type of life insurance is…

Designed for individuals who may prefer not to undergo a medical exam. Instead, easy life insurance approvals typically rely on self-reported health information, lifestyle questions, and other factors to determine coverage eligibility and premium rates. And while the insurance companies will still obtain additional information about an applicant’s health using alternative data sources such as a prescription database check, this won’t be something that an applicant will have to arrange by him or herself.  Additionally, this additional information can oftentimes be obtained instantaneously.

As a result, these policies can provide coverage without requiring extensive medical underwriting, making it a convenient and quick option for individuals who want to protect their loved ones without having to go through a lengthy process.

Top 10 Easy Life Insurance Companies

The following companies offer some of the easiest life insurance policies to qualify for.

• American Amicable
• American National
• Assurity
• Fidelity Life
• Foresters  Financial
• Gerber Life
• Mutual of Omaha
• Principal Financial
• Transamerica
• Sagicor

Each of the companies listed above offers easy life insurance in one form or another, such as whole life, term life, and final expense insurance.

Simplified Issue Application Process

A simplified issue application process refers to a streamlined process for obtaining life insurance coverage. It is designed to minimize the amount of medical underwriting and personal information required to determine coverage eligibility and premium rates. The simplified issue application process typically involves the following steps:

1. Provide basic personal information: You will be asked to provide basic information such as your name, date of birth, and contact information.
2. Answer health and lifestyle questions: You will be asked a series of health and lifestyle questions to determine your coverage eligibility. These questions may include information about your medical history, family history, and lifestyle habits.
3. Review and sign the policy: After you have completed the application, you will be asked to review and sign the policy. If you are eligible for coverage, you can start the policy and begin paying your premiums.
4. Receive coverage: Once you have completed the simplified issue application process, you will receive your life insurance coverage. Your coverage will remain in place as long as you pay your premiums and do not violate the terms and conditions of your policy.

The simplified issue application process is designed to be quick and easy, making it a convenient option for those who want to ensure their loved ones are protected without having to go through a lengthy process.

Types of Simplified Issue Life Insurance Policies

Simplified-issue life insurance policies are generally offered in 3 varieties: Term, Whole Life, and Guaranteed Issue.

1. Term life insurance: Term life insurance is a simple and straightforward type of life insurance that provides coverage for a specified period of time. When offered as a simplified issue policy, it won’t require an applicant to take a medical. Making it an easy option for those who want to ensure their loved ones are protected in a specific period of time.
2. Simplified issue whole life insurance is a type of permanent life insurance that provides coverage for the entire lifetime of the policyholder. Unlike term life insurance, which provides coverage for a specified period of time, whole life insurance provides coverage for the policyholder’s entire life as long as the premiums are paid
3. Guaranteed issue life insurance: This type of life insurance is designed for individuals who may have pre-existing health conditions or may not meet the eligibility requirements for other life insurance policies.

Note: The terms and conditions of each type of life insurance policy may vary from insurer to insurer, and it’s important to read the policy documents carefully to understand the specific requirements and restrictions.

Benefits of an“easy” or simplified issue life insurance policy

The following are some of the benefits of simplified issue life insurance policies:

1. Quick and easy: Simplified issue life insurance policies are designed to be quick and easy, making them a convenient option for those who want to ensure their loved ones are protected without having to go through a lengthy underwriting process.
2. No medical exam required: Most simplified issue life insurance policies do not require a medical exam, making it an easy option for those who want to avoid the hassle of a medical exam.
3. Guaranteed-issue life insurance policies are a great option for individuals with pre-existing health conditions or who may not meet the eligibility requirements for other life insurance policies. This makes them a good option for those who may not be able to obtain coverage through traditional life insurance policies.
4. Guaranteed-issue life insurance policy premiums are set by gender and age, which can make them an affordable option for tobacco users unable to afford a traditional life insurance policy.
5. Coverage can be obtained quickly: Because the simplified issue application process is quick and easy, coverage can be obtained quickly, providing peace of mind for policyholders and their loved ones.

Note: Each policy’s specific pros and cons may vary, so it’s important to read the policy documents carefully and understand the specific terms and conditions before making a decision.

Sometimes, EASY isn’t always the best option

The following are some of the cons of simplified issue life insurance policies:

1. Higher premiums: Simplified-issue life insurance policies typically have higher premiums than traditional life insurance policies, as the insurance company is taking on more risk by relying on self-reported health information.
2. Limited coverage amount: The coverage amount for simplified issue life insurance policies may be limited compared to traditional life insurance policies, which means that the death benefit may not be enough to meet the needs of policyholders and their loved ones.
3. Coverage may be limited for those with pre-existing conditions: Individuals with pre-existing conditions may still face coverage limitations with simplified issue life insurance policies, as the insurance company still needs to assess the risk associated with their health status.
4. May not cover all medical conditions: Simplified issue life insurance policies may not cover all medical conditions. Hence, it’s important to understand what is and is not covered before making a decision.
5. May have exclusions and restrictions: Simplified issue life insurance policies may have exclusions and restrictions that limit the coverage provided, so it’s important to read the policy documents carefully and understand the specific terms and conditions before making a decision.

Lastly, some individuals with pre-existing medical conditions who would be able to qualify for a fully underwritten life insurance policy may automatically decline coverage when applying for a simplified issue term or whole life insurance policy.

This is because the underwriting process for a simplified issue life insurance policy is too limited for an insurance company to make a well-informed decision.  So, in situations like these, the process of applying may be simple and easy, but getting approved won’t be.

Who should apply for an easy or simplified issue life insurance policy?

1. Busy individuals: Simplified issue life insurance policies are designed to be quick and easy, making them a good option for busy individuals who want to ensure their loved ones are protected without having to go through a lengthy underwriting process.
2. Those who want to avoid a medical exam: Most simplified issue life insurance policies do not require a medical exam, making it an easy option for those who want to avoid the hassle of a medical exam or who have a pre-existing medical condition.
3. Young, healthy applicants who should have no problem qualifying quickly
4. Those who need coverage quickly: Because the simplified issue application process is quick and easy, coverage can be obtained quickly, providing peace of mind for policyholders and their loved ones. Examples might include those without any existing coverage or those requiring coverage immediately (SBA loans, divorce decrees, etc.)

Who shouldn’t apply for an easy or simplified issue life insurance policy?

The following individuals may not be the best fit for a simplified issue life insurance policy:

1. Those who require a large death benefit: Individuals who require a large death benefit may not be eligible for a simplified issue life insurance policy, as the coverage amount may be limited compared to traditional life insurance policies.
2. Those with serious health conditions: Individuals with serious health conditions may not be able to obtain coverage through a simplified issue life insurance policy, as the insurance company still needs to assess the risk associated with their health status.
3. Those who believe they will qualify for a preferred plus rate and want to secure the lowest possible premium.

Factors that determine life insurance eligibility

The following are some of the factors that can impact life insurance eligibility:

1. Age: The age of the individual seeking coverage is a factor that can impact life insurance eligibility, as most policies have age restrictions, and rates may be higher for older applicants.
2. Health status: The health status of the individual seeking coverage is a key factor that can impact life insurance eligibility, as insurance companies use this information to assess the risk associated with insuring an individual.
3. Lifestyle: Lifestyle factors such as smoking, drug use, and alcohol consumption can also impact life insurance eligibility, as these habits can increase the risk associated with insuring an individual.
4. Occupation: The type of work an individual does, as well as any hazardous activities they may participate in, can also impact life insurance eligibility, as these factors can increase the risk associated with insuring an individual.
5. Family medical history: Family medical history can also impact life insurance eligibility, as insurance companies use this information to assess the risk associated with insuring an individual.
6. Travel history: Travel history, especially travel to high-risk countries, can impact life insurance eligibility, as insurance companies use this information to assess the risk associated with insuring an individual.
7. Financial stability: The financial stability of the individual seeking coverage, as well as their debts and assets, can impact life insurance eligibility, as insurance companies use this information to assess the risk associated with insuring an individual.

Are all simplified issue life insurance policies the same?

No, not all simplified-issue life insurance policies are the same. Each insurance company may have different underwriting guidelines, coverage options, and eligibility requirements for its simplified-issue life insurance policies. Additionally, some simplified-issue life insurance policies may offer additional features such as a guaranteed acceptance option or a graded death benefit, which may not be available with other policies.

Simplified Issue vs. Fully underwritten life insurance policies

Simplified-issue life insurance policies and fully underwritten life insurance policies differ in terms of the underwriting process, coverage options, and eligibility requirements.

1. Underwriting process: Simplified-issue life insurance policies typically have a less rigorous underwriting process and may not require a medical exam, whereas fully underwritten life insurance policies may require a more thorough underwriting process, including a medical exam, to determine eligibility.
2. Coverage options: Simplified-issue life insurance policies may have more limited coverage options compared to fully underwritten life insurance policies, as they are designed to be more accessible and quicker to obtain. Fully underwritten life insurance policies may have wider coverage options, including higher coverage amounts and additional riders.
3. Eligibility requirements: Simplified-issue life insurance policies may have more relaxed eligibility requirements compared to fully underwritten life insurance policies, as they are designed to be more accessible and quicker to obtain. Fully underwritten life insurance policies may have stricter eligibility requirements, as insurance companies use the information obtained during the underwriting process to assess the risk associated with insuring an individual.

Simplified issue life insurance vs guaranteed issue life insurance

Simplified-issue life insurance policies and guaranteed-issue life insurance policies are two different types of life insurance policies, each with its own advantages and disadvantages.

1. Underwriting process: Simplified-issue life insurance policies typically have a less rigorous underwriting process, requiring fewer medical questions and/or a brief medical questionnaire, whereas guaranteed-issue life insurance policies have no medical questions or underwriting process.
2. Coverage options: Simplified-issue life insurance policies may have more coverage options than guaranteed-issue life insurance policies, as they may allow for higher coverage amounts, additional riders, and more flexible coverage options. Guaranteed-issue life insurance policies typically have limited coverage options and a smaller coverage amount.
3. Guaranteed-issue life insurance policies have no medical questions or underwriting process, making them available to individuals with serious medical conditions who may be declined for coverage through a simplified issue policy.
4. Guaranteed issue life insurance policies will be limited to $25,000 in coverage.
5. Guaranteed issue life insurance policies will contain a graded death benefit.

Graded death benefit:

A graded death benefit is a type of life insurance policy that pays out a death benefit in the event of the policyholder’s death. Still, with a catch: the death benefit amount is limited in the first few years of the policy and increases over time. In other words, if the policyholder dies from natural causes within the policy’s first few years (typically 2-3 years, depending on the carrier), the insured will not receive a death benefit.

Graded death benefits are a way for the insurance company to protect themselves from potential risk, seeing how they don’t use one’s health status as an underwriting requirement.

And there you have it…

A complete breakdown of some of the “easiest” life insurance policies to qualify for. For more information about these and other types of life insurance policies, we encourage you to give us a call so that we can discuss all of your options with you and hopefully find an “easy” and affordable policy that will meet all of your insurance needs.