Simplified Issue Life Insurance: Streamlined Phone Applications with Immediate Decisions
These are level term life insurance policies that provide a simplified issue process with an instant
underwriting decision.
These low cost policies provide the option to convert to a permanent product up to age 70 or the entire term period you have initially chosen.
There is a wide range of features and riders to offer even additional flexibility to meet your needs.
These policies offer low-cost coverage for face amounts up to $1 million with level premiums that do not go up. You can choose term periods of level premiums for 10, 15, 20, or 30 years.
The best part is that you will be given an underwriting decision within minutes. No more waiting a month or more for your policy to be approved as with conventional policies.
Key features of these plans include: no medical exams, no medical records and no waiting for approval.
Table of Contents
What Is Simplified Issue Life Insurance With Instant Decisions?
A simplified underwritten policy is a great way to apply and get approved within minutes. These policies are designed for people who are in relatively good health and don’t require all the various stages of a conventional life insurance application process.
By simply answering the questions that will be asked by your agent, you can be approved for your new policy quickly and easily. Keep in mind that your specific answers to the questions are inputted into the application software and an actual human underwriter is not needed.
This is the case unless on occasion there may be a question or answer that has to be reviewed by an actual person in the carrier’s medical underwriting department. The first step is to choose a top-rated life insurance carrier to apply with that will have some of the lowest rates.
Challenges People Face When Applying for Traditional Life Insurance
If you have ever purchased life insurance in the past, you will know exactly what I am talking about.
- Completing a long drawn out boring application either on paper or online.
- Having to schedule a nurse to visit your home for a physical exam.
- Wait for medical records ordered from your doctor’s office.
- Waiting for a motor vehicle report from the DMV.
- Running a (MIB) Medical Information Inquiry.
- Waiting weeks for the insurer to make a final underwriting decision
With a Simplified Issue Application you can eliminate all these time consuming steps and receive an instant decision so you can walk away with a new life insurance plan right away. 🥰
Who Are These Policies Especially Good For?
- Protect the future earnings of the policyholder.
- Pay off a mortgage or other financial obligations.
- Replace lost income in the event of a wage earner’s death.
- Fund future college expenses or help cover daycare expenses
Who Are These Policies Not Good For?
- Applicants that were recently declined by another carrier without knowledge of the details.
- Applicants with a history of criminal activity.
- Bankruptcy history.
- Heavy lien, judgment, collection or bad debt activity.
- Unemployed clients (with the exception of homemakers and retirees).
Plan Features At-a-Glance
Term Periods:
- For Ages 18-50: 10, 15, 20, or 30-year term periods
- For ages 51-60: 10, 15 or 20-year term periods
- For ages 61-65: 10, or 15-year term periods
Face Amount Available:
Minimum Face Amount
$100,000 for all age groups
Maximum Face Amount
The face amounts will range from $100,00 to $1,000,000 depending on the age group of the applicant and the amount owed on their mortgage if the policy is to be used for mortgage insurance.
Renewability:
To age 85
Underwriting Process:
Simplified – No Paramed Visit or Medical Records Required 🙂
Risk Classifications:
Both Non-Tobacco and Tobacco User Rate Classifications
Policy Riders Offered Available:
Accelerated Death Benefit Rider
This rider is automatically included, providing early access to a portion of the death benefit if the insured is diagnosed with a terminal illness.
Unemployment Waiver of Premium Rider
This rider is automatically included and waives premiums for up to six months should the insured become unemployed.
Children’s Level Term Rider
This is an optional rider, available at an additional cost, providing either $5,000 or $10,000 of coverage for all eligible children at a low cost of $12 annually, per thousand of coverage.
Accidental Death Benefit Rider
This is an optional rider, which is available at an additional cost. It is offered in increments of $25,000, providing supplementary coverage up to $250,000 or 1/2 of the base policy face amount, if the insured dies within 180 days due to an accident, as indicated by a physician’s statement or a death certificate.
Conversion Options Available
Conversion to a universal life policy at any point prior to the earlier of age 70 or the end of the level term period. Conversion to universal life is only allowed on face amounts greater than or equal to $100,000.
Examples of Unacceptable Risks
*If you have any of the health conditions listed below, let us know and we will contact the underwriters directly to help you get approved if at all possible. We see many exceptions to the rule with some conditions.
Applicants with the following characteristics are not suited for our simplified issue process and are likely to be declined:
BMI above 42 or below 17.
Involvement in hazardous sports such as drag racing.
Weight change over 10 pounds in the last year due to anything other than diet/exercise or pregnancy.
Any treatment for, or diagnosis of, the following in the last 5 years:
A. Major depression or mood disorders requiring 3 meds or led to loss of work or seeing a psychiatrist.
B. Bipolar depression, schizophrenia, suicidal ideation or suicide attempt.
C. Diabetes requiring insulin OR age nearest <40 OR age nearest 40+ with A1C>7.
D. Asthma (not including seasonal allergies) that required any hospital, emergency room or immediate care center visits.
E. Emphysema or COPD.
F. Heart disease, including but not limited to heart attack, heart surgery, coronary artery disease, valve disease, irregular heartbeat, congestive heart failure or cardiomyopathy.
G. Any vascular disease, including cerebrovascular disease, stroke, transient ischemic attack (TIA) or peripheral vascular disease.
H. Chronic kidney disease.
I. Liver cirrhosis, chronic hepatitis or disease of the pancreas.
J. Neurological diseases such as amyotrophic lateral sclerosis (ALS), Alzheimer’s disease, Parkinson’s disease, dementia, Huntington’s disease or cognitive impairment.
sclerosis (ALS), Alzheimer’s disease, Parkinson’s disease, dementia, Huntington’s disease or cognitive impairment.
K . Degenerative muscle and nerve diseases, including but not limited to multiple sclerosis (MS), paralysis or muscular dystrophy.
L. Seizure/epilepsy disorder other than simple/partial or petit mal.
M. rheumatoid arthritis, lupus, or any other connective tissue disease, and being prescribed ongoing treatment with steroids or immunosuppressants for a connective tissue disease.
N. Inflammatory bowel disease, including ulcerative colitis or Crohn’s disease, with a history of hospitalization or requiring any visits to a hospital, emergency room or immediate care center within the last two years.
Surgery in the past 2 years (other than bone, joint, ligament, tendon, or tendon sheath, cosmetic, C-section, D&C, dental, gallbladder, hemorrhoid, tonsil or adenoid removal, vision or hearing, varicose veins, or vasectomy).
In Conclusion
The first generation of Simplified Issue life insurance has been around for quite a few years, but there have been many excellent changes to
these plan designs in the last few years, even with premium reductions.
What we discuss in this blog post is the newest second generation of simplified issue policies but now have the benefit of instant underwriting decisions which we never had before.
The instant decision feature now makes these policies an actual game changer. 🥳
Contact us for a free, no-pressure consultation. I specialize in matching individuals and families with the life insurance plans that make the most sense for them — with clarity, honesty, and decades of experience behind every recommendation.
All the best,
Jack Venturi
