What is the difference between simplified issue life insurance and guaranteed issue life insurance?

Pure life insurance and traditional life insurance are normally fully underwritten. Fully underwritten insurance, a form of medically underwritten insurance, requires a paramedical examination, and not a health questionnaire, that significantly lengths the amount of time it takes a person to become covered by an insurance policy. However, some insurance policies can be partially underwritten or require no underwriting at all, which are forms of non-medically underwritten insurance.

An insurance policy that is partially underwritten is known as simplified issue insurance. An insurance company will require an applicant to allow them access to their personal health records provided by the Medical Information Bureau (MIB) in order to perform a pharmaceutical background check and to answer a detailed health questionnaire in order to accept or deny coverage.

An insurance policy that is not underwritten is known as guaranteed issue insurance, also known as instant issue insurance. An insurance company will not require a paramedical examination, but will require an applicant to answer a brief health questionnaire in order to accept or deny coverage. If coverage is denied, the insurer will normally request the applicant to submit a new application that will be medically underwritten.

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