In the following article, we will turn the spotlight on simplified issue life insurance, which allows you to get insured without the hassle of a medical exam, blood work, or urine sample.
Our goal for this simplified issue life insurance article is twofold:
- One, we want to bring attention to the best simplified issue life insurance companies offering policies for both business and personal use.
- Two, we also want to highlight the specific advantages and features of simplified issue policies compared to traditional fully underwritten and guaranteed issue options.
The good news is, if you qualify for simplified issue life insurance it means:
- โ No medical exam
- โ No blood work
- โ No urine sample
- โ Approval decisions typically in days, not weeks
What Is Simplified Issue Life Insurance?
Simplified issue life insurance sits between fully underwritten policies (which require medical exams) and guaranteed issue policies (which ask no health questions).
With simplified issue, you’ll need to answer health and lifestyle questions on the application. The insurance company then uses this information, along with data from various databases (like the Medical Information Bureau, prescription history, and motor vehicle records) to determine your eligibility and rate.
Let’s be honest – simplified issue isn’t for everyone. You’ll typically pay 15-25% more in premiums compared to fully underwritten policies. But if you need coverage quickly or want to avoid medical exams, it can be a perfect solution.
Types of No Medical Exam Life Insurance
There are three different types of no exam life insurance on the market today:
Accelerated Underwriting Life Insurance
Accelerated underwriting is no medical exam life insurance but it is still considered a fully underwritten policy since the companies that offer it perform all the typical background checks, including checking the Medical Information Bureau, Prescription Database, and Motor Vehicle Records. And with some no medical exam companies offering accelerated underwriting, a public record search and property records search may also be done.
Simplified Issue Life Insurance
Simplified issue life insurance does not require a medical exam. Instead, you will need to answer specific health and lifestyle questions. Some simplified issue life insurance policies will require more in-depth questions than others. How you answer the questions will determine if you qualify and what your health rating will be.
Guaranteed Issue Life Insurance
Guaranteed issue life insurance does not require a medical exam or health questions. These policies are guaranteed acceptance, with the only criteria for approval being that you are in the required age brackets and live in a state where the policy is offered.
Why Consider Simplified Issue Life Insurance?
Simplified issue has exploded in popularity over the last few years. According to LIMRA research, simplified issue policies saw a 32% increase in new premium volume between 2023-2024 alone. Here’s why:
1. Speed of approval – Most decisions come within 24-72 hours, compared to 4-6 weeks for traditional policies
2. No medical exam – Perfect for those with needle phobia or busy professionals who can’t fit an exam into their schedule
3. Business applications – Ideal for key person insurance, buy-sell agreements, and other business uses where speed is essential
4. Reasonable coverage amounts – While traditional simplified issue maxed out around $250,000-$350,000, today’s products often go up to $1 million (some even to $2-3 million for younger applicants)
5. Digital application process – Many simplified issue products can be applied for completely online or via phone
Best Simplified Issue Life Insurance Companies Criteria
The primary criteria for making our top simplified issue life insurance companies list was: (1) the company had to offer policies with reasonable underwriting; (2) the policy had to be a valuable addition to anyone looking for personal or business protection; and (3) the company must have high financial strength ratings from the top agencies.
The premium difference between simplified issue and fully underwritten policies has narrowed significantly since 2022, making these policies more attractive than ever.
Top 10 Best Simplified Issue Life Insurance Companies
- Haven Life (MassMutual)
- Bestow
- Ladder
- Mutual of Omaha
- Penn Mutual
- Principal Financial
- Foresters
- Lincoln Financial
- Pacific Life
- John Hancock
Haven Life, backed by MassMutual, has quickly become a market leader in simplified issue life insurance with an 18.7% market share (up 2.3% from 2023). What makes them stand out is their integrated health data platform that reduces application time to under 3 minutes.
Haven Simple Term offers coverage amounts from $25,000 to $1,000,000 for ages 18-64. The fully digital application process provides instant decisions for qualified applicants without requiring a medical exam.
Haven Term Simplified
Haven Term Simplified is their flagship simplified issue product offering term lengths of 10, 15, 20, or 30 years. Premium rates are competitive with traditional fully underwritten policies, especially for applicants under 45 in good health.
The policy comes with a built-in accelerated death benefit rider at no additional cost, allowing early access to benefits if you’re diagnosed with a terminal illness.
Bestow has seen dramatic growth, with their market share increasing 3.6% in 2023 alone to reach 14.2%. They’ve expanded distribution through major banking partnerships and API integration, making them highly accessible to consumers.
What makes Bestow unique is their 100% online application process with instant decisions (typically under 10 minutes) for qualified applicants. They offer simplified issue term life insurance with coverage amounts from $50,000 to $1,500,000 for ages 18-60.
Bestow Term Life
Bestow Term Life offers 10, 15, 20, 25, and 30-year term options with fixed premiums that don’t increase during the term. No medical exam or phone interview is required – everything is handled online.
The policy is issued by North American Company for Life and Health Insurance, which holds an A+ (Superior) rating from A.M. Best, giving you confidence in your coverage.
Ladder has secured a 12.8% market share (up 1.2% from 2023) by pioneering dynamic coverage adjustment technology. This allows policyholders to increase or decrease coverage as their needs change – something traditional policies don’t offer.
Ladder’s application process is fully digital with instant decisions for qualified applicants. They offer term lengths of 10-30 years with coverage amounts from $100,000 to $3,000,000 for ages 20-60.
LadderLife Term
LadderLife Term’s standout feature is flexibility. You can “ladder up” (increase coverage) or “ladder down” (decrease coverage) as your needs change. Increasing coverage requires additional underwriting, but decreasing is instant and reduces your premium.
The policy is issued by Allianz Life Insurance Company of New York and Fidelity Security Life Insurance Company, both with strong financial ratings.
Mutual of Omaha offers accelerated underwriting for ages 18-60 for face amounts starting at $100,000 up to $2,000,000. The simplified issue life insurance is offered on several products including their Term Life Answers and IUL options.
Qualifying applicants will be contacted by ExamOne for an interview and a voice signature. If you are not accepted into the accelerated underwriting program, then you will need to proceed through regular traditional underwriting.
Term Life Answers
Mutual of Omaha’s Term Life Answers provides term lengths of 10, 15, 20, and 30 years. The policy includes a terminal illness rider at no additional cost and offers optional critical illness and disability income riders.
A key advantage is the convertibility option, allowing you to convert to permanent coverage without additional underwriting.
Penn Mutual provides an Automated Accelerated Underwriting program. The revolutionary process does not require you take a medical exam if you qualify.
The program provides potential life insurance approvals in as little as 24 hours with up to $5 million face amounts for standard or better risk classes.
The program is available for ages 20-65. Penn Mutual’s accelerated underwriting is available for its main fixed individual life insurance products.
Guaranteed Convertible Term
Penn Mutual offers qualifying applicants guaranteed convertible simplified issue term life insurance. This term life policy is great if you want to make sure you lock into a policy now, but may want to convert your policy into permanent life insurance coverage down the road without having to go through additional underwriting.
Accumulation Builder II Indexed Universal Life
The Accumulation Builder from Penn Mutual is an indexed universal life policy that builds cash value, with the peace of mind of up to 20 year no lapse guarantee based on your age.
With the Cash Value Enhancement Rider, you have the opportunity for even higher cash value growth in the first five years of the IUL policy.
Principal Accelerated Underwriting program was an early innovator in this new and evolving simplified issue life insurance underwriting landscape. The program eliminates labs and medical exams and is available on all of Principal’s products, including Term life insurance and Universal life insurance, including IUL, VUL, SUL, or Benefit VUL II (in NY only).
The accelerated underwriting program is available for ages 18-60 with face amounts up to $1,000,000. Principal has seen strong growth with business customers, offering specialized solutions for key person coverage and buy-sell funding.
Indexed UL Accumulation
Principal’s indexed universal life policy offers three account options: S&P 500 Price Return Index account which offers one-year point-to-point; S&P 500 Total Return Index account which offers one-year monthly average; and a fixed account.
High early cash surrender values are also available via an additional rider. You can help increase future values through the accumulated value enhancement option. Three death benefit options are available: level, increasing and level with ROP.
Forester Financial offers Non-Medical Underwriting. You will be required to answer all the application questions but you may qualify for simplified issue life insurance without a medical exam.
One thing I really like about Foresters is their member benefits program. Policyholders get access to scholarships, emergency assistance grants, and community volunteer opportunities – benefits you won’t find with most other insurers.
Foresters Your Term Level Term Life Insurance
Foresters convertible term life insurance is offered for term lengths of 10, 15, 20, 25, or 30 years and can be converted to one of Foresters’ permanent life insurance policies without the need for more underwriting.
Advantage Plus Whole Life Insurance
Forester’s Advantage Plus provides whole life insurance coverage with face amounts up to $400,000. You can choose from 20-Pay limited pay whole life insurance and Paid-up at 100.
The policy also offers a guaranteed insurability option (GIO) rider. The GIO rider is definitely worth a look if you are a young adult or you are considering life insurance for children. The GIO rider allows additional life insurance to be purchased without a medical exam or other evidence of insurability.
LincXpress from Lincoln Financial provides “lab-free” underwriting for qualifying applicants, including a telephone application with a member of Lincoln Financials dedicated team.
Lincoln Financials policies are issued by Lincoln National Life Insurance Company. LincXpress is available on all term life insurance and permanent life insurance products (excluding Lincoln LifeElements One-Year Term, Lincoln TermAccel, and Lincoln MoneyGuard). LincXpress is available up to age 60, with face amounts up to $1,000,000.
Lincoln LifeReserve Indexed UL Accumulator
In addition to a fixed account, the LifeReserve IUL Accumulator offers indexed account options of one year point-to-point capped, one year point-to-point high participation and one year point-to-point uncapped.
You can borrow up to 100% of the policy’s cash surrender value at anytime. Policy loan rates of 6% for the first 10 years. The rate drops to 5% for policy years 11 to age 100. If you are still alive at 100, policy loan rates drop to 3%.
Pacific Life offers two different accelerated underwriting programs: Smooth Sailing and Swift Sailing. You can qualify for up to $2,000,000 simplified issue life insurance with Swift Sailing and the program is available for ages 18-60 for standard or better rates classes.
Pacific Life PL Promise products include convertible term life insurance and guaranteed universal life insurance.
PL Promise Term
PL Promise Term offers 10, 15, 20, 25, and 30-year level premium periods with simplified underwriting available. The policy includes a terminal illness accelerated death benefit at no additional cost and can be converted to permanent insurance.
What I’ve found impressive about Pacific Life is their dedicated business insurance team that helps with key person coverage and buy-sell funding arrangements – particularly valuable for business owners.
ExpressTrack offered by John Hancock Life Insurance Company provides the opportunity for no labs or blood work on the companies single life, term life, and permanent life insurance policies.
Standard rates classes, up to super preferred health classes, are available. The ExpressTrack program is available for ages 18-60, with face amounts up to $1,000,000.
Accumulation IUL
John Hancock’s latest indexed universal life offering focuses on cash value accumulation and for potential retirement income. The policy offers the standard fixed account, with additional high par, capped, and uncapped indexed accounts.
The high par capped indexed account offers a 160% participation rate, with a guaranteed rate of 140%. The capped and uncapped indexed accounts offer the standard 100% participation rate.
Another benefit is indexed loans continue to earn interest credited at the segment maturity. This creates an opportunity for positive arbitrage on your policy loans.
Business Applications for Simplified Issue Life Insurance
Simplified issue has become increasingly popular for business use cases. In fact, I’ve seen a significant uptick in business owners choosing simplified issue for the following applications:
SBA Loans
If you are applying for a SBA loan you may be required to get life insurance as collateral.ย
Key Person Protection
When a business depends heavily on specific individuals, using key man life insurance to protect against their unexpected loss is vital. Simplified issue policies allow businesses to secure this protection quickly – often in days rather than weeks. This is particularly valuable for:
- Startups and small businesses where one person holds critical knowledge
- Companies with specialized talent that would be difficult to replace
- Businesses where certain individuals drive significant revenue
Buy-Sell Agreement Funding
Business partnerships use buy sell agreements funded with life insurance to provide protection against the unexpected death of a partner. Simplified issue policies fund buy-sell agreements efficiently, ensuring remaining owners can purchase a deceased partner’s share without financial strain.
The speed of implementation is particularly valuable when establishing new business relationships or when business valuations are changing rapidly.
Simplified Issue Life Insurance FAQs
What exactly is simplified issue life insurance?
Simplified issue life insurance is a streamlined policy that requires no medical exam and minimal health questions. Approval decisions typically come within days rather than weeks. While coverage limits usually max out around $500,000 (though some providers now offer up to $1 million), the application process requires only answering 10-15 health questions rather than undergoing bloodwork or physical exams.
How much more expensive is simplified issue compared to fully underwritten policies?
Simplified issue policies typically cost 15-25% more than fully underwritten policies for healthy applicants. However, this premium differential has narrowed significantly since 2022. For business applications, the speed of coverage often outweighs the additional cost, especially when protecting key personnel or funding buy-sell agreements where delays could create significant business risk.
What health conditions would disqualify me from simplified issue approval?
Common disqualifications include cancer diagnoses within 5-10 years, heart attacks or strokes within the past 2-5 years, insulin-dependent diabetes with complications, alcohol or drug treatment within 2 years, or any terminal illness. Each carrier has different standards, but these represent typical exclusions. Some specialized carriers now offer simplified products with more lenient underwriting for certain conditions.
Can I use simplified issue life insurance for a buy-sell agreement?
Yes, simplified issue policies are increasingly popular for funding buy-sell agreements, especially for businesses under $5 million in value. The quick approval process ensures protection is in place rapidly, reducing the business vulnerability period. When structured properly, these policies can provide the necessary capital for remaining owners to purchase a departing partner’s share in case of death.
What if I don’t qualify for simplified issue life insurance?
If you do not qualify for simplified issue, you still have options. You can pursue a fully underwritten policy, which requires a medical exam but may offer better rates, especially if you have well-controlled health conditions. Alternatively, guaranteed issue policies are available with no health questions, though they typically have lower coverage amounts and higher premiums.
Simplified Issue Life Insurance Conclusion
Many of the companies above offering simplified issue life insurance have products that rival anything else on the market. These are fantastic options for people who want quality coverage without the hassle of a medical exam, or for business owners who need protection in place quickly.
The simplified issue market has evolved dramatically in recent years, with higher coverage amounts, more competitive pricing, and improved underwriting technologies. What was once considered a “fallback option” has become a first-choice solution for many consumers and businesses.
So if you’re considering life insurance but want to skip taking a medical exam, give us a call today to see what we can do for you.ย
