What is simplified whole life insurance?

Simplified issue whole life insurance is a type of permanent coverage that has fewer health requirements to apply. It may be a good fit for you if you want to cover end-of-life expenses or if you don’t qualify for other types of life insurance.

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Katherine MurbachEditor & Licensed Life Insurance AgentKatherine Murbach is an editor and a former licensed life insurance agent at Policygenius. Previously, she wrote about life and disability insurance for 1752 Financial, and advised over 1,500 clients on their life insurance policies as a sales associate.&Nupur GambhirSenior Editor & Licensed Life Insurance ExpertNupur Gambhir is a licensed life, health, and disability insurance expert and a former senior editor at Policygenius. Her insurance expertise has been featured in Bloomberg News, Forbes Advisor, CNET, Fortune, Slate, Real Simple, Lifehacker, The Financial Gym, and the end-of-life planning service Cake.

Edited by

Antonio Ruiz-CamachoAntonio Ruiz-CamachoAssociate Content DirectorAntonio helps lead our life insurance and disability insurance editorial team at Policygenius. Previously, he was a senior director of content at Bankrate and CreditCards.com, as well as a principal writer covering personal finance at CNET.
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Reviewed by

Maria FilindrasMaria FilindrasFinancial AdvisorMaria Filindras is a financial advisor, a licensed Life & Health insurance agent in California, and a member of the Financial Review Council at Policygenius.

Updated|2 min read

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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.

Key takeaways

  • Simplified issue whole life insurance is a type of permanent life insurance that offers coverage up to a certain limit, usually $40,000 to $50,000.

  • It doesn’t require a medical exam to apply and has fewer health qualifications than traditional life insurance.

  • Certain medical conditions, such as a terminal illness or some types of cancer, can disqualify you from simplified issue life insurance.

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

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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

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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.

Frequently asked questions

What’s the difference between simplified issue and guaranteed issue life insurance?

Simplified issue whole life insurance is cheaper than guaranteed issue whole life, but it still has some health qualifications to apply. Guaranteed issue whole life insurance is more expensive but approval is near-guaranteed.

How much coverage can you get with simplified issue whole life insurance?

Coverage amounts for simplified issue life insurance can range from $2,000 to $50,000, but it depends on the insurer.

Authors

Katherine Murbach is an editor and a former licensed life insurance agent at Policygenius. Previously, she wrote about life and disability insurance for 1752 Financial, and advised over 1,500 clients on their life insurance policies as a sales associate.

Nupur Gambhir is a licensed life, health, and disability insurance expert and a former senior editor at Policygenius. Her insurance expertise has been featured in Bloomberg News, Forbes Advisor, CNET, Fortune, Slate, Real Simple, Lifehacker, The Financial Gym, and the end-of-life planning service Cake.

Editor

Antonio helps lead our life insurance and disability insurance editorial team at Policygenius. Previously, he was a senior director of content at Bankrate and CreditCards.com, as well as a principal writer covering personal finance at CNET.

Expert reviewer

Maria Filindras is a financial advisor, a licensed Life & Health insurance agent in California, and a member of the Financial Review Council at Policygenius.

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