Simplified Issue Life Insurance – The Pros and Cons

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Simplified issue life insurance is insurance that is easier to qualify for than traditional life insurance, requires no medical exam and is quickly issued. It’s a fast and less intrusive experience for healthy individuals as well as for those whose health concerns make it more difficult for them to qualify for traditional insurance.

The Pros 

You don’t have to meet with a financial security advisor in person because the interview can be done remotely via an electronic application. In short, it’s a no-contact process.

You don’t have to submit blood and urine samples. Simply answer a short health questionnaire, whether over the phone or online.

You don’t have to wait weeks for policy delivery. When you qualify, your policy may be issued in minutes!

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The Cons

The amount of coverage available is more limited than that of traditional life insurance.

The price of simplified issue life insurance is higher than that of traditional life insurance. Why? The insurer bases the premium calculation on limited information.

The insurer can still deny coverage. Individuals who don’t qualify can then consider opting for guaranteed issue life insurance.

Insurance Options

When it comes to simplified issue, you can choose between Term and Whole Life Insurance.

Term insurance protects you for a specific period of time, typically 10 or 20 years. However, it can be renewed up to age 80.

Whole life insurance offers lifelong protection.

The basic features of each are presented below.


Life Insurance Type

Enrolment Age: 18-70

Insurance Amount (death benefit):

  • 18 to 50: $25,000 - $500,000
  • 51 to 60: $25,000 - $249,999
  • 61 to 70: $25,000& - $99,999

Enrolment Age: 18-60

Insurance Amount (death benefit):

  • 18 to 50: $25,000 - $500,000
  • 51 to 60: $25,000 - $249,999

Enrolment Age: 18-80

Insurance Amount (death benefit):

  • 18 to 60: $10,000 - $249,000
  • 61 to 80: $10,000 - $99,999

Interested in simplified life insurance? 

Speak to a financial security advisor.