Have you noticed that almost every life insurance website is a little misleading about getting instant life insurance quotes? Most people find that once you’ve provided your email address or phone number, the race is on for agents to contact you until you demand that they just stop.
And, when you finally make a decision and start the application process, they immediately start talking about scheduling a medical exam and also want specific details of your family’s health history.
Key Article Takeaways
However, there is an easier and faster way. There are highly-rated life insurance companies out there that will ask for minimal personal information to offer a quote and will never require a medical exam or the health history of your aunts and uncles.
Let’s drill down into instant life insurance to answer your questions and get your no-hassle shopping process underway!
What is Instant Life Insurance?
You may have heard of instant life insurance before. It is typically a term life insurance policy that does not require a medical exam and the company will use underwriting data from sources like the MIB or Medical Information Bureau, a national prescription database, and sometimes your driving record.
Insurance companies today have embraced 21st-century technology that enables them to speed up the life insurance underwriting process and reduce their underwriting costs. Doing so allows them to compete will fully underwritten life insurance rates (includes the dreaded medical exam) and get the policies out the door in a fast and efficient manner.
Please don’t confuse instant issue term life insurance with guaranteed issue whole life insurance which is typically purchased by seniors with multiple or severe medical issues. Instant life insurance is much cheaper than guaranteed issue whole life insurance and most companies will offer coverage up to $1 million or higher.
How does Instant Life Insurance Work?
Instant life insurance allows a life insurance shopper to get multiple price comparisons and have their policy issued in four easy steps.
Get online quote comparisons with minimum personal information.Fill out the insurance application online.Speak with an agent or underwriter to confirm your information.Sign the application online and pay the first month’s premium
Once you’ve completed this four-step process, your policy can be issued in a matter of hours rather than weeks and months and your policy will be sent out immediately after it’s issued.
If you’re thinking the process is too fast for your liking, don’t worry about it because most companies offer a 30-day free look period. If, after reviewing your policy, you find that it’s not what you expected, you can simply cancel and return it for a refund.
Instant Term Life Insurance vs Traditional Term Insurance
Instant Term Life Insurance
Traditional Term Life Insurance
Up to $2 million Death Benefit
Up to $25 million Death Benefit
No Medical Exam
Medical Exam Required
5, 10, 15, 20, 25, and 30-year Policy Terms
5, 10, 15, 20, 25, and 30-year Policy Terms
Online Underwriting
Full Underwriting
Medical Records not Required
Medical Records Required
No Waiting Period
3 to 6 Week Waiting Period
Instant Approval and Issue
Typically Requires Agent Involvement
Premiums are slightly higher
Lower Premiums in Most Cases
How do Instant Term Life Insurance Rates Compare with Traditional Term Insurance?
Although instant issue life insurance policies were typically much higher than traditional (fully-underwritten), in today’s marketplace the rates are only slightly higher than traditional term life insurance.
Because of technology that has been embraced by most insurance carriers, the underwriting process has become quicker and less costly because of the national databases that store the medical information and prescription history of many U.S. citizens.
However, please don’t misunderstand, this information doesn’t come from your physician records but rather from insurance companies who are members of these information providers. Moreover, when you fill out a life insurance application, there is a conspicuous area where you agree to let your insurance company share the medical information on the application.
Here are actual rates for instant life insurance vs. traditional term life insurance:
Average instant issue rates for a healthy male non-smoker – average weight and height: 10-Year Term
Instant Life Insurance
Age
$100,000
$250,000
$500,000
25
$10.42
$14.96
$22.25
35
$11.67
$18.08
$26.42
45
$16.75
$30.58
$41.83
55
$28.75
58.92
$81.00
Fully-Underwritten Term Life Insurance
Age
$100,000
$250,000
$500,000
25
$8.13
$11.62
$17.27
35
$8.39
$11.83
$17.93
45
$12.74
$21.78
$35.11
55
$23.99
$45.26
$80.11
Average instant issue rates for a healthy female non-smoker – average weight and height: 10-Year Term
Instant LIfe Insurance
Age
$100,000
$250,000
$500,000
25
$7.50
$8.29
$10.17
35
$8.75
$10.58
$13.50
45
$10.58
$22.46
$30.58
55
$21.58
$41.63
$56.00
Fully-Underwritten Term Life Insurance
Age
$100,000
$250,000
$500,000
25
$7.04
$8.92
$11.44
35
$7.20
$9.13
$12.19
45
$10.16
$15.49
$24.65
55
$17.40
$30.55
$49.71
Pros and Cons of Instant Life Insurance
As with any kind of life insurance, there are pros and cons to deal with because of your personal circumstances and available budget.
Instant life insurance is for individuals who want to get a policy issued quickly and prefer not to have a medical exam. It is, however, a better fit for healthy individuals because insurance companies that offer instant life insurance generally go by acceptance or decline choices only.
Pros:
Your policy can be issued the same day as applyingNo intrusive and inconvenient medical examRates that are only moderately higher than fully underwritten life insuranceDeal directly with the company
Cons:
Not a good choice for individuals who have below-average health or seniorsRates are higher than fully-underwritten life insuranceDeath benefit limits are generally $2 million or lowerMany companies will not consider applicants with dangerous occupations or hobbies
Companies we Recommend for Instant Term Life Insurance Coverage
Although there are many insurance carriers that offer no exam life insurance, there is only a handful that are really good at it and offer policies directly to consumers. Since these few companies are focused on instant issue term life insurance, they may not offer traditional term, whole life, or universal life insurance. If not, the instant life insurance you purchase will likely not have a conversion option.
Policy Periods
10, 15, 20, 25, and 30-year terms
Coverage Amounts
$20,000 to $1,500,000
Eligible Ages
18 to 60-years-old
Medical Exam
NO
Life Insurance Products
Term Life Insurance
Policy Periods
10, 15, 20, and 30-year terms
Coverage Amounts
$20,000 to $2,000,000
Eligible Ages
20 to 65
Medical Exam
NO
Life Insurance Products
Term Life and Guaranteed Issue Whole Life
Policy Periods
10, 15, 20, and 30-year terms
Coverage Amounts
$50,000 to $2,000,000
Eligible Ages
20 to 60
Medical Exam
NO
Life Insurance Products
Term Life and Universal Life
For more information about instant life insurance or any other types of life insurance, call the insurance pros at LifeInsure.com at (866) 868-0099 or contact us through our website 24/7.
Term Life Insurance Quotes
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