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Simplified Issue And Guaranteed Issue Life Insurance Explained

Published September 8, 2023

Whether you're just starting out in your career or enjoying your retirement years, life insurance is an important consideration to protect yourself and your loved ones financially. 

However, navigating the world of life insurance policies can be overwhelming, especially with all the different options available. Two popular choices for individuals looking for hassle-free coverage with an easy application process are simplified issue and guaranteed issue life insurance. 

In this article, we'll break down what these types of policies are and how they can benefit you.

Mature man happy he has a simplified issue life insurance plan

What is Simplified Issue Life Insurance?

Simplified issue life insurance is a type of policy that offers coverage without the need for a medical exam. Instead of going through extensive medical underwriting, applicants are simply asked a series of health-related questions during the application process. They typically cover information about your medical history, lifestyle habits, and current health status.


How Is Simplified Issue Life Insurance Different From Traditional Life Insurance?

The difference lies in the application process. Simplified Issue Life Insurance requires a short questionnaire. These  questions are simpler than your traditional life insurance application process, which in contrast, typically require an in-person medical exam, doctor’s visit, and often take up to 90 business days for approval.

The main advantage of simplified issue life insurance is the quick and convenient application process. Since there's no medical exam involved, you can get approved for coverage instantly. This makes it an ideal option for individuals who have health conditions that might make it difficult to qualify for traditional life insurance policies, or those who simply don’t want to wait.


The Benefits of Simplified Issue Life Insurance

There are several benefits to choosing simplified issue life insurance:

  1. No Medical Exam. As mentioned earlier, the absence of a medical exam makes the application process faster and more convenient.
  2. Easier Qualification. Simplified issue policies have more lenient underwriting requirements, so individuals with pre-existing health conditions or a history of medical issues can still qualify for coverage.
  3. Quick Approval. With simplified issue life insurance, you can get approved for coverage instantly, compared to traditional policies that may require months for underwriting.
  4. Flexibility. Simplified issue policies often offer flexible coverage options, such as term lengths and coverage amounts, allowing you to tailor the policy to your specific needs.
  5. Affordability. While premiums for simplified issue life insurance are often slightly higher compared to traditional policies, they are often more affordable than guaranteed issue policies.

Happy middle-aged woman with her guaranteed issue life insurance plan

Understanding Guaranteed Issue Life Insurance

Guaranteed issue life insurance is another type of policy that offers coverage without a medical exam or health questions. This means that regardless of your health condition, you are guaranteed to be approved for coverage. The main purpose of guaranteed issue life insurance is to provide coverage to individuals who may have difficulty obtaining traditional life insurance due to age or health issues.


Key Features of Guaranteed Issue Life Insurance

Here are some important features of guaranteed issue life insurance:

  1. No Medical Exam or Health Questions. The main advantage of guaranteed issue policies is that there are no medical exams or health questions to answer. This makes it an ideal choice for individuals with serious health conditions or those who have been declined for coverage in the past.
  2. Guaranteed Acceptance. With guaranteed issue life insurance, you are guaranteed to be accepted for coverage, regardless of your health as long as you are between the ages of 18-74 and a Canadian resident. This can provide peace of mind for individuals who have been denied coverage in the past, or fear being denied due to age, health, or occupation-related reasons
  3. Limited Coverage Amounts. Guaranteed issue policies typically have lower coverage amounts compared to traditional life insurance policies (which can often go up to $1 million in coverage). This is because the insurance company is taking on a higher risk by insuring individuals without a complete understanding of their health conditions.
  4. Higher Premiums. Since guaranteed issue policies come with no medical underwriting, the insurance company assumes a higher level of risk. As a result, premiums for a guaranteed issue life insurance policy will be higher compared to the same life insurance policy but with a medical exam done.

Senior man with a good life insurnace plan

Which Policy is Right for You?

The choice between simplified issue and guaranteed issue life insurance depends on your individual circumstances and needs.

Simplified issue life insurance is a good option if:

  • You want coverage quickly and without the hassle of a medical exam
  • You have minor health issues that may affect your eligibility for traditional policies
  • You want a flexible policy tailored to your specific needs

Guaranteed issue life insurance may be the right choice if:

  • You have been declined for coverage in the past due to serious health conditions
  • You have a pre-existing condition that makes it difficult to qualify for traditional policies
  • You have reached an age where traditional life insurance becomes more challenging to obtain


It's important to note that while simplified issue and guaranteed issue policies offer convenience and ease of access, they may come with certain limitations. For instance, the coverage amounts for these policies may be lower compared to traditional life insurance. And there may be waiting periods before the full death benefit is available.

Therefore, it's always a good idea to consult with a licensed insurance professional who can assess your individual needs and help you choose the right policy for your specific situation.


In Conclusion

Simplified issue and guaranteed issue life insurance policies offer convenient and accessible coverage options for individuals who may have difficulty obtaining traditional life insurance. Whether you choose a simplified issue policy for its quick approval process or a guaranteed issue policy for its guaranteed acceptance, both options provide valuable protection for you and your loved ones.

At Insurance Supermarket, we understand the importance of finding the right policy to suit your unique needs. Start protecting your future today with a tailored policy from Insurance Supermarket. Get in touch with us today and get a free quote by clicking the button below!

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