Simplified term life insurance is a type of life insurance that is relatively easy to obtain. Typically the policy can be drawn up without many questions and usually without a medical exam. The process usually requires only the submission of basic medical information, including major diseases and recent hospital stays.
This type of insurance is also referred to as “simplified-issue term life insurance” or “no-exam term life insurance.” It differs from guaranteed-life insurance, though, in its duration — simplified term life insurance, as the name illustrates, is a type of insurance that lasts for a specified term, while guaranteed-life insurance lasts for the policyholder’s lifetime, assuming certain conditions are met.
Costs associated with simplified term are higher than life insurance that requires a medical exam — the exception to this is with policies for children. Also, the benefit range for simplified term is often lower than that of other kinds of insurance — simplified term policies’ values start at around $5,000 and rarely exceed $300,000. While this type of insurance is generally more expensive and often provides a lower benefit, it can be sold to people in high-risk groups, such as the overweight and smokers.