What is simplified issue vs. guaranteed issue life insurance?
Answered by 1 licensed agent
“Simplified Issue” is when the insurance company does not require a paramed (physical) on you. During the application process, they will ask you to sign a HIPPA form. You’re giving them permission to request your medical history. Your MIB(Medical Information Bureau) report & your RX, prescription drug check. The insurance company will approve or decline you based on this information. No medical exams required.
“Guaranteed Issue” is when the insurance company will not ask any health questions. There is a wait period of 2 years mainly but some carriers have a 3 year wait before they will pay out the death benefit. If you die before the 2 or 3 year wait period, most companies will return your premiums back to you plus interest. Some carriers will pay you 10% interest while other carriers may pay less.
Hope this explains the difference. Thanks for the question.
“Guaranteed Issue” is when the insurance company will not ask any health questions. There is a wait period of 2 years mainly but some carriers have a 3 year wait before they will pay out the death benefit. If you die before the 2 or 3 year wait period, most companies will return your premiums back to you plus interest. Some carriers will pay you 10% interest while other carriers may pay less.
Hope this explains the difference. Thanks for the question.
Answered by Sandra Bailey on June 29, 2026
Broker Licensed in TN
Tags: Coverage Eligibility
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