What is Simplified Term Life Insurance?

A simplified term life insurance policy refers to an easy-to-obtain form of life insurance. It typically means that the policy can be garnered without many questions and usually without a medical exam. This type of insurance is also referred to as “simplified issue term life insurance” or “no exam” term life insurance.

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Bypassing medical exams is a strong appeal for simplified term life insurance.

Function

Simplified term life insurance policies are designed to streamline the issuance of life insurance policies, and as such, are divergent from traditional term policies, particularly in costs and limits.

Costs

Costs associated with simplified term are higher than life insurance with a medical exam requirement. The only exceptions are with policies for children.

Limits

Simplified term life insurance policies rarely exceed $300,000 and start at around $5,000 of coverage.

Benefits

While this type of insurance is generally more expensive, it can be garnered by people in high-risk groups, such as the overweight and smokers. According to the HCV Advocate, even people with hepatitis can be insured quickly. Without a medical exam, the policy can be issued faster and, in some cases, over the phone.

Required Submissions

This type of policy serves to simplify the application process for life insurance. The process typically requires only the submission of basic medical information, including major diseases and recent hospital stays.