Instant Life Insurance

    Everything You Need To Know About Instant Life Insurance

    Buying life insurance can take a long time – just applying can take 4 to 6 weeks to complete. Only after the underwriting process will you then hear back from insurance companies about approval, get a quote, and begin to finalize your policy. 

    In certain situations, it’s just not possible for people to wait that long and jump through that many hoops. Instant decision life insurance is one way to get coverage almost immediately. The process is contactless and typically does not require a medical exam, which significantly speeds up approval.

    This could be an ideal life insurance option for individuals in difficult situations. An instant policy can be great for people who:

    • Need insurance ASAP
    • Have health conditions that may otherwise affect their insurability
    • Are adhering to pandemic stay-at-home mandates and can’t sign up for insurance the traditional way

    If any of these situations apply to you, then read on! Our guide will outline everything you need to know to get started.

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    What Is Instant Life Insurance?

    In unusual situations or emergencies, people may not have the time to go through the typical life insurance application process. Current circumstances may also make it unsafe to leave the house or have a medical practitioner come over for an exam. This is where instant life insurance policies come in handy.

    This type of life insurance policy guarantees an almost immediate decision about your application. If you find yourself in a situation where a medical exam or waiting period is not possible, this is the best option to get coverage quickly.

    How Does It Work?

    Instant insurance is not a completely different kind of policy. Rather, it’s a method of selling life insurance products that companies are trying to shift to. 

    Buying life insurance is simpler and faster through this instant method. You can send everything you need to apply for insurance online. Some insurance companies even use artificial intelligence to predict your risk factor, assess your life expectancy, and issue a decision quickly. This means you can get instant permanent or term life insurance, comprehensive coverage amounts, and affordable life insurance rates – even without an exam.

    The life insurance company will still ask individuals for typical requirements, such as:

    • Contact information (e.g. phone number, email address)
    • Personal information (e.g. name, height, weight, etc.)
    • Family history
    • Medical history (e.g. health questions, conditions, diagnoses, previous procedures)
    • Evidence of insurability
    • Credit score
    • Relevant public information (e.g. criminal records, bankruptcy, lawsuits)
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    Other Types Of Insurance Without A Medical Exam

    Instant decision insurance isn’t to be confused with policies that don’t require an exam. These policies usually have a higher life insurance cost, offer small amounts of coverage, and still have a waiting period. 

    If your main issue is that you have a health condition that may affect your rates, these policies could be a good alternative to traditional policies. Below are two of the most common types of policies that don’t require a medical exam.

    Simplified Issue 

    Both permanent and term life insurance can be simplified issue. Simplified policies replace the medical exam with a health questionnaire. This can be a great option for people with poorer health. But if you’re young and otherwise healthy, you may end up paying higher rates. There are also lower coverage limits, with a maximum of $100,000.

    Guaranteed Issue

    Guaranteed issue is a type of permanent or whole life insurance that guarantees approval. There is no medical exam; only a few related health questions.

    Unlike term life insurance, you get the added benefit of a cash value component. You can withdraw from this account after a certain amount of time tax-free. Depending on your company or state laws, this amount may not be released to your beneficiaries if you die before withdrawing it. 

    However, guaranteed issue life insurance rates are much higher than instant decision products. Because there’s no medical exam, life insurance coverage is also very limited – even more so than simplified issue insurance.

    For these reasons, guaranteed issue is only recommended as a last resort for people who can’t get insurance otherwise. Consult with an independent agent or advisor, compare quotes, and see if guaranteed issue is the best option for you.

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    Applying For Instant Insurance

    You can check your chosen life insurance company’s website for information about products, sample rates, and instant insurance quotes. If you’re not happy with your life insurance terms, feel free to shop around until you find one that suits your needs best. 

    Fill out and submit forms for your insurance online. A life insurance agent from the company will call you for an initial phone interview where you’ll be asked personal questions and information. 

    Make sure you are completely honest while speaking to agents over the phone. Though an instant life policy usually skips the exam, they still do a background check.

    There are a few instant insurance cases where the life insurance company will require you to take a medical exam or fill out additional information online to properly evaluate risk. It’s best to ask your agent about these requirements beforehand if this will be an issue for you. 

    If you’re caught lying on your application, your insurer will automatically reject you. Other companies will see that you’ve been rejected, affecting your chances with them too. If you’re caught lying after your policy is in force, your death benefit might not be released to your beneficiaries. 

    Almost immediately after you submit the requirements and take the phone interview, you’ll hear back from providers about your exam results (if applicable), insurance quote, and their decision. There are three possible outcomes: 

    1. Approval

    Once you get approval and are happy with the quotes they’ve offered, you can start finalizing your policy. Go over the papers with your agent, sign them, and pay your first premium. Your policy should take effect immediately.

    2. Denial 

    People may still be denied instant insurance by companies. It’s important to remember that though you may not be eligible for instant insurance coverage with a specific company, no one is uninsurable. Browse around for other products with rates that are just as competitive. 

    3. Refer To Underwriter

    This outcome isn’t necessarily bad news. Company agents may just need you to answer some follow-up questions or provide additional evidence of insurability before they can issue you coverage. In some cases, you might be asked to take a confirmatory health exam. 

    What To Consider 

    Comparing instant life insurance quotes and policies is the best way to find the right option for your situation. Here’s what you’ll need to consider before applying for a life insurance policy:

    How Much Insurance Do I Need?

    Coverage for instant insurance can range from $25,000 up to $3,000,000. Larger amounts may sound appealing, but it’s important that you only get the amount of coverage you need. Life insurance companies will also make sure that the amount they issue is proportionate to your salary, number of dependents, and how long you’ll need to protect them.

    You don’t want too little life insurance coverage, either. This won’t give adequate protection to your loved ones after you pass away. You can use online calculators to get an initial life insurance quote, giving you an idea of how much you’ll be paying versus the amount of life insurance you need. 

    What Kind Of Policy Should I Get?

    The two main types of instant policies are permanent life insurance and term life insurance:

    • Instant term life insurance: This is best for those who only need coverage for a certain amount of time. Term life insurance is the most popular insurance choice in general because of how straightforward and affordable it is. Accelerated underwriting is most commonly used when applying for a term life insurance instant policy. 
    • Instant permanent life: This covers you for the rest of your lifespan. Unlike term life insurance, permanent life has a cash account component that allows you to earn and withdraw this amount over time. Though you get more benefits, you pay much higher rates than term life insurance. 
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    The Bottom Line

    Life insurance should be an essential part of anyone’s long-term financial plan. However, not everyone can afford or access life insurance, especially with a long waiting period or strict medical exam requirements.

    If you are eligible, an instant decision life insurance policy is a great way to skip the waiting period and get protection as soon as you need it. As long as you are relatively healthy, prepare everything necessary, and disclose whatever you need to your agent during the interview, you shouldn’t have anything to worry about. 

    Not sure where to start? Get in contact with our team of professionals at Wesley Insurance, LLC. We'll provide the assistance you need to get the best plan.

    Written By Cameron McDowell
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