What is Simplified Underwriting?
Simplified Underwriting is a type of life insurance underwriting that involves a simplified application process with fewer health-related questions and typically no medical exam. It is designed to make it easier and quicker for individuals to obtain life insurance coverage, as opposed to traditional underwriting, which involves comprehensive health checks and detailed medical history.
With Simplified Underwriting, applicants may only need to answer basic questions about their health, lifestyle, and medical history. The insurer may also use third-party data, like prescription history and motor vehicle records, to assess risk. This process is generally faster, often resulting in approval within days rather than weeks.
While Simplified Underwriting offers convenience, it may come with higher premiums compared to fully underwritten policies, as insurers assume a greater risk due to the lack of detailed medical information. This option is popular for those seeking quick coverage, such as individuals with moderate health concerns or those who want to avoid invasive medical exams.
Simplified Underwriting is commonly available for term life insurance and some whole life policies, making it an accessible option for those needing straightforward life insurance without the complexities of traditional underwriting.