What is a Simplified Issue Life Insurance Policy?

Most life insurance policies require a medical exam, and in some cases, you may have to wait a few weeks to find out if you have been approved.

April 1, 2021

If an existing medical condition, the medical exam, or another reason prevents you from being applicable for coverage, you may consider a Simplified Issue life insurance plan.

Continue reading to find out more about Simplified Issue life insurance. And, more importantly, if it is right for you.

What is a Simplified Issue life insurance policy?

Young Black Couple on Rooftop.

Simplified Issue life insurance is simple, uncomplicated and requires no medical exam. However, it does require that you answer a few questions relating to your health and lifestyle.  

As a result, applying for a Simplified Issue life insurance policy and getting approval is easy, fast, and painless. All the same, not everyone who applies will be approved by the insurer.

If your answers to the health and lifestyle questions reveal to the insurer that you are too risky to insure, your application may be denied. Keep in mind, insurers are likely to access medical databases and other records to make sure that applicants are being truthful.

Why choose a Simplified Issue life insurance policy?

Simplified issue life insurance can be a good option for Canadians who do not want to:

  • Take a medical exam.
  • Answer invasive questions regarding their health and lifestyle.
  • Wait for up to six weeks to get approval.

However, the convenience of skipping the medical exam comes at a price. The premiums for Simplified Issue life insurance policies are higher than a comparable Term life policy. Also, these policies usually have smaller death benefits and are less flexible than other plans.

The average policy takes about six weeks to receive approval. Not everybody wants to wait that long to have a life insurance plan in place. If you need a policy quickly, Simplified Issue life insurance may be a good option for you and will often only take 2-3 days to receive approval.

Since these policies have small payouts, they also make sense for people who want to provide for their funeral or burial expenses.

How much does Simplified Issue life insurance cost?

Canadian money. Dollar banknotes on wooden background

Simplified Issue life insurance in Canada is more expensive than traditional plans because it is harder for insurers to calculate the risk involved without the applicants taking the medical exam. As a result, insurers have less information about an applicant’s health. Insurers, in turn, compensate for this lack of information by charging higher rates. Traditional policy rates reflect the risk outlined in the medical exam.

The exact cost of a Simplified Issue life insurance policy, however, may vary from person to person. It largely depends on two factors — age and health. Young and healthy people will receive better rates than people who are older or in poor health.

What is the difference between Simplified Issue and Guaranteed policies?  

For both Simplified Issue and Guaranteed life insurance policies there is no medical exam. However, for Guaranteed life insurance there is also no medical questionnaire and you are guaranteed to receive a policy. For this reason, Guaranteed life insurance policies are more expensive.

Simplified Issue policies involve an underwriting process and applicants will be asked questions about their health and lifestyle. Applicants may be denied Simplified Issue life insurance depending on the answers to those questions.

The disadvantages of a Simplified Issue life insurance policy?

Talented female international students having consultancy
  • Simplified Issue life insurance policies are costlier than a standard life insurance policy. If you do not want to take a medical exam but are in good health, you may want to consider an accelerated Term life insurance policy instead. Term life insurance policies also do not require the medical exam, are generally cheaper and offer more flexibility.
  • The Death Benefit amount is minimal because the insurer knows little about you.
  • Many Simplified Issue plans include a waiting period, usually two years. If you pass away within this period, the insurer will not pay The Death Benefit amount to your family. Instead, it will return to them the premium amount you had paid.
  • Simplified Issue plans have limited rider options compared to other plans. Insurance riders are additional features you can add to your policy — usually in exchange for a small fee — for extra protection.


Simplified Issue life insurance lets you forgo the medical exam and get approval quickly. However, you will pay higher premiums and have limited coverage options. Considering this, a Simplified Issue plan makes sense only for those who do not qualify for a traditional life insurance policy. Others should consider buying a Term life policy, before committing to a Simplified Issue life insurance policy.

Whatever your situation, Dundas Life can help find the right coverage for you at an affordable price.

Get a quote in just 5 minutes

How can we help you? Our team is happy to help answer any questions you have.

Get Instant Quote
dundas life insurance calculator on phone

Have specific insurance questions?

Call 905-367-0344 to speak with a licensed advisor who cares, or schedule a time below.
Book My Call

Sign up for our news and updates

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

By signing up for the newsletter, you are agreeing to our Terms of Service and Privacy Policy and opting into
receiving announcements and general marketing emails from Dundas Life.