Instant life insurance: How does it works?

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If you’re in the market for life insurance, you may be considering an instant life insurance policy. With traditional life insurance policies, the application process can take weeks or even months because of the underwriting process, which often includes a medical exam. However, instant life insurance provides coverage quickly — sometimes even in a matter of seconds — without requiring a medical exam or a lengthy application process.

How does instant life insurance work?

Instant life insurance policies are typically term life insurance policies, so they only provide coverage for a specific period of time, such as 10 or 20 years. Like other term life insurance policies, instant life insurance doesn’t come with any frills, such as cash value.

Aside from the application process — which takes about ten minutes — instant life insurance functions like any other life insurance policy. You’ll pay your premiums annually or monthly to keep your policy active. You’ll also want to update your beneficiary designations with every major life event.

The major difference between instant life insurance and other types of policies is that you won’t have to take a medical exam and you get application approval — or rejection — instantly.

How much does instant life insurance cost?

Historically, the premiums for instant life insurance were much higher than traditional term life insurance. But with the evolution of artificial intelligence and advanced digital practices, instant life insurance brings fewer risks to the insurer. When an insurance company takes on less risk, premiums are lower.

Now, instant life insurance premiums are often comparable to — or even cheaper than — traditional term life insurance.

How to buy instant life insurance

First, determine how much life insurance you need. The amount of coverage you need determines your premiums.

After that, compare quotes from multiple companies. Each company rates applicants differently, so one insurer might offer you a better price than another.

Once you know who you want to work with, the application process for instant life insurance is typically quick and easy. You’ll provide some basic information about yourself, such as your age, gender, and occupation. You’ll also be asked about your medical history and lifestyle habits, such as whether you smoke or drink alcohol. From there, the underwriting algorithm will evaluate your profile and determine how much you pay for coverage.

All in all, the application process generally takes under 10 minutes. You should have your answer within the day, if not within seconds.

Advantages and disadvantages of instant life insurance

Pros of instant life insurance

It can be purchased quickly and easily, which benefits people who need coverage quickly, such as those who are getting married or having a child.
Sometimes, it can be more affordable than other types of life insurance policies. When it isn’t, it’s generally comparable in price.

Cons of instant life insurance

Coverage amounts may be limited. Since the insurance company doesn’t have as much information about your health, they may not be willing to offer you as much coverage as they would if you underwent a medical exam.
If you have a serious medical condition, premiums for instant life insurance policies may be higher than those for traditional term life insurance policies.

Who should get instant life insurance?

Instant life insurance can be a good option for people who need coverage quickly and don’t want to undergo a medical exam. If you’re young and in good health, instant life insurance may also offer you the most affordable premiums.

However, instant life insurance isn’t the best option for everyone. People with complex medical histories or those who need over $1 million in coverage will likely still need to purchase a policy that requires a medical exam.

Talk to an insurance advisor to see if instant life insurance is right for you.