Simplified issue whole life insurance is a type of permanent coverage that doesn’t expire. It has fewer health qualifications than traditional life insurance, so it can be ideal for older adults or people with pre-existing conditions. This type of insurance is commonly used to cover end-of-life expenses, like a funeral.
How does simplified whole life insurance work?
Simplified whole life insurance works similarly to most other types of permanent life insurance, meaning it lasts your entire life.
You can usually apply for coverage up to a limit of $40,000 to $50,000, but it depends on the insurer.
You’ll forgo the medical exam that’s a common part of the application process. Instead, you’ll answer a few health questions.
Like other types of whole life insurance, simplified issue policies often still come with a cash value account that builds over time.
Many types of simplified issue life insurance are customizable with riders, just like other types of traditional life insurance. Examples include an accelerated death benefit rider or a chronic illness rider, which let you withdraw funds if you’re diagnosed with a terminal or chronic illness.
When you die, your beneficiaries can claim the death benefit tax-free.
The term “simplified issue” can also refer to term life policies that have fewer health requirements to apply, but these types of policies are less common.
What disqualifies you from getting simplified issue life insurance?
Serious health conditions that affect your ability to complete activities of daily living (ADLs) can disqualify you from getting a simplified issue policy. Even though you have to meet fewer health qualifications than you would for traditional term life or whole life insurance, you still have to meet a few health requirements for approval.
If you answer yes to any of the following questions, you might not qualify for simplified issue whole life insurance:
Are you currently bedridden, in a long-term-care facility, or in a nursing home?
Do you require a wheelchair, electric scooter, or oxygen equipment?
Have you ever been diagnosed with or treated for Alzheimer’s disease or dementia, congestive heart failure, diabetic coma, an organ or bone marrow transplant?
Do you have a terminal medical condition?
In the past 12 months, have you been diagnosed with heart disease or had heart surgery?
Have you been advised to have a surgical operation or diagnostic testing that isn’t routine?
In the past two years, have you been diagnosed with any form of cancer?
Pros & cons of simplified issue life insurance
Simplified issue life insurance isn’t right for everyone, but it can offer quick coverage and an easy application process.
Pros
No medical exam. There’s no medical exam and fewer health qualifications you have to meet for approval.
Fast coverage. The application process is often quick — it can take three to five business days before your coverage is active, and sometimes even sooner.
Cheaper than guaranteed issue whole life. Simplified issue policies are usually more affordable than some other types of final expense insurance, like guaranteed issue.
Doesn’t expire. Your simplified issue whole life policy won’t expire as long as you continue paying your premiums.
Cons
Limited coverage. You can usually only apply up to a limit of $40,000 to $50,000 in coverage — the exact amount depends on your insurer.
Age restrictions. Many simplified issue whole life policies require you to be age 45 or older. There are some exceptions, though, so it can help to work with an independent broker to make sure you’re exploring all of your options.
More expensive than traditional life insurance. Simplified issue whole life is still more expensive than term or whole life insurance — even if you buy less coverage.
Some policies have graded death benefits. This means there’s a waiting period between when you buy your policy and when your full coverage amount becomes active.
Learn more about life insurance with a graded death benefit
How much does simplified whole life insurance cost?
A 50-year-old female could pay about $45.41 per month for a simplified issue whole life policy with a $20,000 coverage amount. A 50-year-old male could pay about $57.82 per month for the same coverage.
Your rates will depend on your age and health, as well as the insurer you’re purchasing your policy through. You can connect with a Policygenius expert for free to get a personalized quote.
Age | Gender | $20,000 coverage amount | $30,000 coverage amount | $40,000 coverage amount |
50 | Female | $45.41 | $66.00 | $86.86 |
Male | $57.82 | $85.06 | $112.23 | |
60 | Female | $62.17 | $91.55 | $120.93 |
Male | $83.84 | $113.61 | $164.28 | |
70 | Female | $102.72 | $152.37 | $203.35 |
Male | $140.98 | $209.77 | $288.82 |
Methodology: Average monthly rates are calculated for male and female non-smokers in Preferred and Standard health classifications obtaining a $20,000, $30,000, or $40,000 simplified issue whole life policy offered by Policygenius through Mutual of Omaha and Transamerica. Rates may vary based on insurer, term, coverage amount, health class, and state. Not all policies are available in all states. Rate illustration valid as of 03/01/2024.
Is simplified issue life insurance right for you?
If you’re looking to get coverage quickly, you don’t want to take the medical exam, and can’t qualify for a more traditional policy due to a pre-existing condition or otherwise, simplified issue life insurance may be a good fit for you.
If you only want coverage to provide funds for final expenses, simplified issue life insurance is probably a good fit, too.
On the other hand, if you don’t have many health complications, you’re looking for a larger coverage amount, and you can still qualify for traditional life insurance, a simplified issue policy might not be the best solution.
If you’re not sure if you need simplified issue life insurance, working with an independent broker like Policygenius can help you compare quotes from top insurers to find the right policy for your needs.
