Instant Issue Term Life Insurance
Let’s face it, we live in a world of instant gratification… tap a screen, click a button and you get what you want at lightning speed. From Uber to Amazon Prime— you can hitch a ride, get a food order, or a box of household goods delivered to your door within minutes or hours. That’s why the old-school process of buying life insurance can seem so archaic in this speed of light era. But life insurance has come a long way and has now been thrust into the 21st century of instant issue term life insurance in which you can get a policy approved within minutes or hours.
It used to be that you could only get the best rates for a life insurance policy by filling out a ton of paperwork, undergoing medical tests requiring blood and urine samples, and then wait for up to 3 months to get underwriting approval. How times have changed. For the past decades, more life insurance companies have jumped on the bandwagon of offering instant issue term life insurance online for younger, healthy people who want an immediate policy without the need for a medical exam. And, whereas coverage amounts used to be just enough for funeral expenses, the amount of instant approval life insurance you can buy these days can go as high as one-million dollars of death benefit.
More and more people ask us for this option because they don’t want to wait, or can’t afford to wait to get insurance for personal or business reasons. A parent going through a divorce settlement may have to comply with a court order to provide life insurance naming the children as beneficiaries on the policy. A business owner might need to enter into a buy-sell life insurance agreement with partners. Or, someone planning a trip overseas might need to quickly replace a lapsed policy before heading out. These are real-life situations that require speedy action and instant life insurance can provide the solution.
The application process is relatively short. As with all types of life insurance coverage online, it all begins with a preliminary quick quote after applicants answer a few simple questions: age, gender, state of residence, amount of coverage and length of coverage desired. Then there are a few medical, occupational, and lifestyle questions before the applicant is told if they qualify for the instant approval and given a price. If you accept the policy, a credit card payment is required and you can literally print your life insurance policy certificate from your own computer… that’s it, you’re covered instantly. This is a perfect case scenario generally for those who are 18-60 years old and in good general health, without any chronic medical conditions. This type of insurance is also called non-medical life insurance.
What You Can Expect: Speed And Simplicity
Instant Online Quote
As we said, the process of applying for instant issue life insurance is about the same then it is for a traditional life policy; it’s the completion and approval process that is like night and day. It begins when you review instant online quotes and then apply directly on your computer after answering a few more health questions before you get approved or denied. Here are the steps:
• E-APP: In most cases, an electronic application replaces the long paper apps, and it can be done on the phone with the agent in about 15 minutes. It will require questions about your overall health history (a sort of pre-underwriting teleconference to handicap your risk factors) and you will sign it electronically on your computer before it is sent off to the life insurance company for their underwriting review.
• Forego The Medical Exam: Instant issue life insurance does not require a medical exam with blood and urine samples, EKGs, etc. Your word is your proof. Honesty is critical because be assured, they will check your records.
• Permission To Access Medical and Motor Vehicle Data: The insurance company will ask for your permission to research your medical information, as well as other personal information such as your motor vehicle records, and credit history. They use several databases to access all your data. They will check your driving records for any serious violations, with a focus on DUI, suspended licenses, moving violations or reckless driving.
• Pharmacy Reports and Medical Information Bureau (MIB) is an insurance consumer-reporting agency that protects insurance companies against fraud. Those records will reveal any health conditions that were discovered from any other individual health or life insurance applications you submitted in the past. Prescription databases will reveal all medications you’re taking or have taken in the past that could show any health concerns.
• Tele-Interview: Some life insurance carriers may require a telephone interview seeking more details about your health history.
• Instant Approval Or No Approval: After completing these application steps, you will be told if you are approved. This can happen as quickly as minutes or as long as a few days. Again, the younger and healthier you are, the more likely you are to qualify for instant-issue term life insurance without the need for a medical exam. But healthy, middle-aged or older people generally from age 18 up to 50 or maximum age of 60 can qualify for these policies. But any chronic medical conditions will probably knock you out of the running and at the discretion of the insurer’s underwriter they can order that you go through the medical exam process to qualify for a traditional fully underwritten policy.
Potential Health And Lifestyle Questions That Could Hurt Your Chances of Instant Approval
- Do you anticipate travel outside of the U-S in the next 2 years? Certain countries are listed as posing “Unacceptable Risks.” They include Afghanistan, Algeria, certain parts of Colombia (Medellin/Cali), Iran, Iraq, Pakistan, Saudi Arabia, Syria, among others.
- Have you ever been convicted of a felony? That might be enough for a disqualification for any life insurance by most carriers.
- Any recent or multiple bankruptcies?
- High blood pressure (higher than 129/80)
- Elevated cholesterol (higher than 200 mg/dL
- Elevated blood glucose levels (diabetic/pre-diabetic).
A “yes” to these questions and others considered “risky,” will likely make it difficult to get approval for clients looking for a rushed application process. An experienced, licensed agent can advise and help steer applicants to the best carriers for their individual circumstances and likely prevent a frustrating application experience.
Rates and Prices or Instant Issue Life Insurance Are Often the Same than Traditional Medical Exam Coverage
There was a time when non-medical life insurance was significantly more expensive than traditional, fully underwritten, medical exam policies. Those days are now gone, especially for healthy applicants with no medical or lifestyle issues. There is little to no variance in price points for non-medical policies i.e., instant issue term life these days. All of the top carriers are on board so it isn’t like it used to be where the non-med was a separate product, offering a “Standard” only health/rate class.
• Among the top 5 carriers currently offering the cheapest prices on today’s instant issue policies are Banner Life, SBLI, Principal Financial, Protective, and several others. Their rates consistently win when comparing fully underwritten policies requiring a medical exam.
• Add to that the fact that some of these insurers offer both options for their term products. Meaning you, the client, are given a “You Choose” scenario to decide which route to take for the SAME price point. So, if you want it quick and you are an ideal applicant, it’s a no-brainer as to which option you would choose.
This chart will show examples of some of the most competitive non-medical exam, simplified issue or accelerated underwriting products offered by carriers. It shows the different requirements, guidelines and offerings by coverage amount, and age restrictions. The term lengths are generally set at a maximum of 20-years, with coverage amounts now going as high as $1million dollars for a number of carriers.
|Issue by Age||Ages 20-50||Ages 18-60||Ages 18-60||Ages 18-60|
|Coverage by Age||10T: $100K-$500K
15T, 20T, 25T, 35T (Ages 20-40):$100K-$1M
|$50,000 – $1,000,000||Ages 18-45($100,000 – $1,000,000):
Ages 46-60($100,000 – $500,000)
||Preferred or super preferred||
18-45 Standard or Better
45-60 preferred or Better
|All UW classes|
|Labs Required?||May qualify for lab-free underwriting||No||If the client qualifies for accelerated underwriting (As determined in PHI) then labs are waived||No|
|Phone Interview Required?||Yes||Yes||Yes||Yes|
|Post Interview Turnaround Time||1-2 days if lab free||review 24-48 hours with complete requirements||48-72 hours||1-2 days if lab free|
Insurance Companies Also Win From Instant Approval Policies
It’s not just consumers benefitting from the speed and ease of buying an instant issue policy; life insurers get a nice windfall too. By streamlining the buying process, companies are able to cut costs. Remember, they not only have to employ a lot of staffers to process all the steps of traditional underwriting, they also bear the cost of the expensive medical exam you take. Those tests are free to you but insurers pay a pretty penny to fund them.
Another reason is to incentivize more consumers to buy coverage. A whopping 44% of consumers are uninsured or underinsured in this country, according to a study conducted by LIMRA, a life insurance marketing group. That is why life insurers are trying to streamline the process to remove many of the obstacles that have turned consumers off from buying protection. The user-friendlier they make the process, the fewer hurdles Americans will have to overcome to obtain critical coverage to protect their families.
So what are you waiting for? An instant issue (no medical exam) life insurance is your quickest way of obtaining a coverage with no medical work and whatsoever. Call us at 1-800-521-7873 for more information. We are here to help you with your questions!