How Does Instant Life Insurance Work?
With instant life insurance, the insurance company relies on electronic underwriting processes (accelerated, The insurance company taps into databases containing information about your health history, which is all fed into their algorithm. This data, along with your answers to various health and lifestyle questions, allows you to skip the lab tests and physical exam. Ultimately, the insurance company’s algorithm determines if you’re approved and what final price you’ll pay. or simplified) Simplified issue underwriting is essentially the same as accelerated underwriting except for A) there are fewer health questions to answer, B) approvals are faster, and C) they often accept more risky applicants. The insurer still gathers health and lifestyle information about you via various databases. That information, along with your answers to the health questions, is fed into an algorithm that determines if you're approved. to determine your eligibility rather than having you complete a medical exam.
Basically, the insurer gathers your health information and lifestyle information from online databases such as the Medical Information Bureau or Milliman Intelliscript. All that data is fed into an algorithm that determines whether or not you’re approved and the final premium you’d have to pay.
Since everything is done electronically, this whole process happens very quickly, which is why applications are approved on the spot or within a few business days.
How To Buy Instant Life Insurance And What’s Required To Apply
After doing your research and selecting which insurance company and product you want, the next step is to apply formally. Please note that every life insurance company will have its own requirements and processes. That said, in general, to apply for a fast life insurance policy, you will be asked to provide:
- Personal information such as name, date of birth, address, and SSN
- Beneficiary names
- Payment information such as bank account & routing number or credit card
If you’re not applying for a guaranteed acceptance life insurance policy, you will also need to provide:
- Health history
- Driving history
- Family health history
In terms of completing the application, most insurers have electronic processes where you can complete and sign everything online. Furthermore, many providers now offer a voice signature process where you can completely apply and sign with your voice.
If you’re approved, the insurance will mail you the policy, which should arrive within 1-3 weeks. In addition, many insurers offer a service where you can get an e-policy delivered via email the same or the next day.
Types of Instant Life Insurance
In general, there are five types of fast life insurance, but they vary by company.
1) Guaranteed issue
Guaranteed issue policies do not ask about your health, nor do they require you to provide medical records or complete an exam. Because your approval is guaranteed, there will always be a two-year waiting period. Any non-accidental death during the first 24 months will result in a return of your premiums plus roughly 10% interest.
These are always whole life policies, and nearly all companies offer a maximum of $25,000 in coverage (only the AARP life insurance program will go up to $30,000 in guaranteed coverage).
2) Burial insurance
No medical exam burial insurance is a type of simplified issue whole life policy that is generally meant to cover your funeral costs. However, the payout money (which is paid out very quickly) can be used for any purpose. Final expense policies offer very lax underwriting, which means applicants with a wide array of high-risk health issues are still eligible. The premiums are very affordable since the coverage is often less than $50,000.
3) No exam whole life
Whole life insurance is permanent coverage that also combines a savings component called “cash value“. The policy owner can borrow from the cash value and spend it as they wish. In addition, whole life insurance prices never increase, and the death benefit is guaranteed never to decrease. Overall, whole life insurance is the most expensive type of policy.
4) No exam term life
Term life insurance is a temporary form of life insurance. By design, the policy will terminate either A) upon reaching a certain age, such as 70 or 80, or B) after a number of years, such as 10, 20, or 30. Once you reach the end of the policy’s life, you’re no longer insured, and you don’t get your premiums back.
Without question, term life is the least expensive form of life insurance (it’s cheaper because it expires at the end of a term).
5) No exam universal life
Universal life insurance is similar to whole life in that it is a permanent coverage that also accrues cash value. Where universal life differs is that the premiums are often adjustable, and the rate of cash value growth can affect how much you’re required to pay.
Also, if you withdraw too much cash value, the policy can prematurely terminate (this cannot happen with a whole life policy). Universal life insurance is always less expensive than whole life, but it will be more costly than term life insurance.
How Much Does Instant Life Insurance Cost?
Keep in mind that life insurance premiums are usually calculated based on age, gender, resident state, tobacco usage (if any), health & lifestyle, type of policy, and the amount of coverage. That said, below are some sample instant life insurance quotes for various policy types.
Does Fast Life Insurance Have A Waiting Period?
Most types of fast life insurance do not have a waiting period, which means you’re fully covered for natural or accidental death the day your policy starts. Keep in mind that to get life insurance with no waiting period, you must apply for a policy that asks about your prior health issues.
Any policy that does not ask about your health history will have a two-year waiting period. If there is a waiting period and you die during this time, the insurer will only refund your premiums plus approximately 8-10% interest.
Is Immediate Life Insurance Right For You?
Instant life insurance may be the right solution for you if any of the following conditions apply:
- Seniors with pre-existing conditions who need life insurance: Life insurance for seniors with no medical exam generally accepts applicants with current health conditions that would often lead to a decline for a traditionally underwritten policy. Instant life insurance coverage is a great way for high-risk seniors to secure a new policy.
- If you want life insurance coverage very quickly: Perhaps because you’re busy or just don’t want to wait, instant life insurance options are typically issued immediately or within a few days. It’s the perfect solution for those who need coverage quickly.
- Don’t want to speak with a licensed agent: In many cases, you can buy fast life insurance policies totally online or through the mail. That means you don’t need to speak with a licensed insurance agent at any point.
- Only need a small amount of coverage: Many types of fast life insurance offer small coverage as low as $5,000 or $10,000. For example, if your goal is to pay for your end-of-life expenses, you don’t need a large policy —you only need a small amount to cover the funeral costs.
Some Of The Best Companies That Offer Instant Life Insurance
Essentially, every life insurance company offers fast life insurance. Whether you quickly need senior burial insurance, term life, or whole life, the three companies below are some of the best ones to consider.
- $10K Policy Cost$48.00/month*
- New Applicant Ages45-85 (varies by state)
- Death Benefit Options$3,000-$20,000
- 2-Year Waiting PeriodYes
- $10K Policy Cost$41.01/month*
- New Applicant Ages45-85
- Death Benefit Options$2,000-$50,000
- 2-Year Waiting PeriodNo
- $10K Policy Cost$51.10/month*
- New Applicant Ages18-85
- Death Benefit Options$5,000-$100,000
- 2-Year Waiting PeriodNo
Frequently Asked Questions
HIPAA laws protect everyone’s health information from being disclosed without your prior authorization. When you apply for life insurance, the application includes a HIPAA release so that they have the right to obtain your protected health information. If you refuse to sign this authorization, the insurance company would not even consider your application (they would outright deny you).
In most cases, an instant life insurance policy will cost more (per thousand dollars of coverage) than a plan that is fully underwritten (requires a medical exam and all your medical records). However, due to advances in technology, the cost is often not much higher, which many consumers feel is a worthwhile tradeoff given how quickly instant life insurance policies are approved.
Every company has an age limit for the types of life insurance it may offer. In general, new instant term life policies will have a maximum age of 70 to 75. New instant whole life and universal life policies will have a maximum age of 75 to 80. New guaranteed acceptance policies have a maximum age of 85. Some types of final expense insurance have a maximum age of 90, but most companies have an 85-year-old age limit for new applicants..
Any life insurance policy that asks you questions about health will start immediately assuming you’re approved. Whether it’s an instant life insurance policy or a fully underwritten one that requires a medical exam, if there are health questions and you’re approved, you would be fully insured for natural or accidental death right away.
- Nationally licensed life insurance agent with over 15 years of experience
- Personal annual production that puts him in the top .001% out of all life insurance agents in the nation.
Anthony Martin is a nationally licensed insurance expert with over 15 years of experience and has personally served over 10,000 clients with their life insurance needs. He frequently authors entrepreneurial and life insurance content for Forbes, Inc.com, Newsweek, Kiplinger, and Entreprenuer.com. Anthony has been consulted as an expert life insurance source for dozens of high-profile websites such as Forbes, Bankrate, Reuters, Fox Business, CNBC, Investopedia, Insurance.com, Yahoo Finance, and many more.
- Nationally licensed life insurance agent with over 19 years of experience
- Best selling Amazon author.
Jeff Root is a nationally licensed life insurance expert with over 19 years of experience. He has personally helped over 3000 clients with their life insurance needs. Jeff is a best-selling Amazon author and the managing partner of a highly successful insurance brokerage that manages over 2,500 licensed insurance agents across the USA. He has been a featured life insurance source for prestigious websites such as Forbes, Bloomberg, MarketWatch, Nerdwallet, and many more.
- Nationally licensed life insurance agent with over 14 years of experience
- Best selling Amazon author of five insurance sales books.
David Duford is a nationally licensed insurance expert with over 14 years of experience. He has personally helped more than 15,000 clients buy life insurance. David has been featured as an expert source for highly authoritative publications such as A.M. Best and Insurancenewsnet. He also runs one of the largest Youtube channels to help aspiring insurance agents serve their clients better.
- Nationally licensed life insurance agent with over 19 years of experience
- Best selling Amazon author.
Jeff Root is a nationally licensed life insurance expert with over 19 years of experience. He has personally helped over 3000 clients with their life insurance needs. Jeff is a best-selling Amazon author and the managing partner of a highly successful insurance brokerage that manages over 2,500 licensed insurance agents across the USA. He has been a featured life insurance source for prestigious websites such as Forbes, Bloomberg, MarketWatch, Nerdwallet, and many more.
- Nationally licensed life insurance agent with over 14 years of experience
- Best selling Amazon author of five insurance sales books.
David Duford is a nationally licensed insurance expert with over 14 years of experience. He has personally helped more than 15,000 clients buy life insurance. David has been featured as an expert source for highly authoritative publications such as A.M. Best and Insurancenewsnet. He also runs one of the largest Youtube channels to help aspiring insurance agents serve their clients better.
Choice Mutual often cites third-party websites to provide context and verification for specific claims made in our work. We only link to authoritative websites that provide accurate information. You can learn more about our editorial standards, which guide our mission of delivering factual and impartial content.
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Medical Information Bureau. https://www.mib.com/
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Milliman Intelliscript. https://www.rxhistories.com/
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cash value. https://www.allstate.com/resources/life-insurance/cash-value
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Mutual of Omaha quote calculator. https://www3.mutualofomaha.com/mobile-quotes/#/iule/
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HIPAA laws. https://www.hhs.gov/hipaa/for-professionals/privacy/laws-regulations/index.html
