The process of purchasing life insurance can be overwhelming for many people — scheduling meetings, answering health questionnaires, getting a medical exam, completing paperwork and waiting weeks to hear from the insurance company. But with instant issue life insurance, you may be able to purchase a policy online in a matter of minutes.
What is instant life insurance, and is it right for you? Here, we’ll explore this type of policy and weigh the pros and cons.
What is instant life insurance?
Instant life insurance, more formally known as instant issue life insurance, is designed to be simple. It’s competitively priced life insurance — usually term life insurance — that you can purchase online with an accelerated underwriting process. It’s an affordable, easy option for those in good health who want life insurance quickly.
How does instant life insurance compare to traditional insurance?
One of the biggest differences between instant life insurance and a traditional life insurance plan is the time it takes to get an approval. Applying for a traditional term or permanent life insurance policy can take weeks. But you can often get approved for an instant issue policy in as little as 5 minutes.
Just like a traditional policy, premium payments can vary based on your age, health, coverage amount and term length you apply for. Historically, premiums have been more expensive for types of no medical exam life insurance. But that isn’t always the case with instant life insurance.
Advancements in underwriting technology have allowed instant issue policies to be more competitively priced than ever.
What is the process for purchasing instant life insurance?
The application process for instant issue coverage is usually straightforward and quick. You’ll be asked for basic information such as your name, address, birth date, gender and Social Security number, plus a few questions about your health and lifestyle.
Information is also pulled from sources like the prescription drug database and the department of motor vehicles for your driving record.
From there, the insurance company’s algorithm will instantly analyze that data and evaluate the risk to insure you. You’ll usually get a quote and answer within minutes, allowing you to decide and purchase coverage all online.
Note that some insurers who use this accelerated underwriting process to fast-track your application can reserve the right to request a medical exam or answer more questions, if needed.
Can I get instant life insurance?
Generally, healthy individuals who lead safe lifestyles are able to easily get instant life insurance. However, those with pre-existing health conditions, hazardous jobs or a poor driving record may be denied instant approval and need to go through a more formal underwriting process.
The pros and cons of instant life insurance
Here are some important benefits and limitations to keep in mind when you’re shopping for an instant issue life insurance policy.
The pros
Some benefits of instant issue life insurance include the following:
- Immediate coverage: With no medical exam and no waiting period, you can be insured the same day you apply for a policy thanks to accelerated underwriting.
- Simplicity: If you have an idea of what you need and you’re ready to protect your future, there’s usually no easier process to acquire private life insurance.
- Flexible, customizable policies: Most insurers offer a variety of options, benefits and coverage amounts that will help you find a policy to match your lifestyle needs and budget.
The cons
On the flip side, there are some drawbacks to consider:
- Health and lifestyle are still a factor: While instant life policies don’t usually require extensive underwriting and detailed medical exams, you may still be asked about your health and lifestyle. Those with pre-existing conditions or who have dangerous jobs or hobbies may not receive instant approval.
- Potential for higher premiums: While instant life insurance can be an affordable option, rates can vary from one insurance company to the next. So it’s important to shop around.
- Potential for limited coverage: Compared to traditional policies, an instant life plan may offer limited coverage or options, based on your personal information. Some insurers also impose age limits.
Tips for buying an instant life policy
If you’re considering an instant issue life insurance policy, keep these suggestions in mind:
- Be realistic about approval. Healthy people who lead safe lifestyles shouldn’t have any problems getting an instant quote and approval decision. Those with pre-existing conditions or other risk factors might have to go through additional underwriting. If you want a policy that doesn’t ask any health-related questions, that could be more expensive, consider guaranteed issue life insurance.
- Determine how much coverage you need. Calculate how much life insurance you’ll need and how long you want the policy to be in effect. You can add efficiency to your process by using an online life insurance needs calculator.
- Consider the policy features. Do you want to add life insurance riders or to have the ability to convert the policy into a permanent policy? Take those things into account when comparing policies.
- Shop around. It’s always a good idea to compare insurance quotes. With instant life insurance, you may be able to get a better rate because some companies use different data to determine your eligibility and premium cost.
Want to know if instant life insurance is right for you?
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