Have you been trying to find an instant issue term life insurance policy that covers you immediately with no medical exam or waiting period?
Here’s some good news, getting an instant issue term insurance policy is now possible!
Here’s what we’ll go over in this article.
We’ll explain how instant issue term life insurance works and how it’s different than other no-exam life insurance policies.
Also, we’ll outline which health issues are not eligible for instant-approval term life insurance, and we’ll give you some good advice on how choose the right company so you get approved and at the best rate.
Table of contents
- What Is Instant Issue Term Life Insurance?
- What Is The Difference Between Accelerated Underwriting Term Life Insurance No-Exam And Instant-Approval Term Life Insurance Accelerated Underwriting No-Exam?
- How To Get Term Life Insurance Coverage Immediately With No Medical Exam
- Understanding Who Is A Good Fit For Instant Issue Term Insurance
- Instant Issue Term Insurance – No Waiting Period
- Underwriting Instant-Approval Term Life Insurance: Eligibility
- Health Conditions That Will Result In A Decline For Instant Issue Term Life Insurance
- Non-Health Issues That Will Result In A Decline For Instant-Approval Term Life Insurance
- Not Sure If You Will Qualify?
- The Truth About Instant Issue Term Life Insurance Policies With No-Exam
- Be Honest On Your Application
- The Best Way To Find Instant Issue Term Life Insurance With No Medical Exam
What Is Instant Issue Term Life Insurance?
Instant issue (approval) term life insurance is an all-digital application process that allows consumers to purchase a term life policy online in less than 15 minutes. A final underwriting decision and rate are provided immediately after the application is completed.
It works by using the application answers provided by the applicant and instantly checks several third-party databases to complete the underwriting process.
Know what’s great?
The majority of those looking for term life insurance younger than age 60 can qualify for a policy that really is instant issue.
A common question people have is.. “Which instant issue term life insurance company is the best for my age, health, and has the lowest rates?”
To answer that question, you can spend the time and go on each companies’ website and get tentative quotes, apply with each one (not recommended) or you can work with an independent agent like us that has access to the top instant issue term life insurance companies’ rates and underwriting guidelines.
Let us help
Based on your health and lifestyle profile, we can see if instant approval term life insurance is right for you. Also, we can show you the tentative rates and match you with the best insurer based on your underwriting profile.
The best part is that there is no charge for our services! It’s the same price if you go though us or the insurance company directly. We can save you time and money by placing you with the correct company from the beginning.
We will find you the best instant issue term life insurance company for your needs, goals and eligibility.
What Is The Difference Between Accelerated Underwriting Term Life Insurance No-Exam And Instant-Approval Term Life Insurance Accelerated Underwriting No-Exam?
Believe it or not, there are major differences between accelerated underwriting term life insurance with no-exam and instant-approval (issue) accelerated underwriting term life insurance with no-exam.
Let’s go over the differences between the two below.
Accelerated underwriting term life insurance no-exam timeline:
- Get quotes
- Complete the application online or with an agent
- Complete a telephone interview with a representative from the insurance company which takes about 20-30 minutes
- E-sign the application, most companies allow either by voice-sign or DocuSign
- Underwriting will then assess your application electronically by checking with certain databases such as the MIB (Medical Information Bureau) MVR (Motor Vehicle Reports), RX (prescription drug database) and public information database (which includes soft credit check-doesn’t affect your score)
- Two things will happen at this step: either the application will be approved and issued or if more information is needed the insurance will request your medical records
- Once the underwriter receives your medical records back from your physician(s), a final decision will be made
Approval Time: 24 Hours to 4 weeks
Instant-approval term life insurance with accelerated underwriting no-exam timeline:
- Get quotes
- Apply online
- Receive an instant decision with automated underwriting after you complete the online application. Instantly, the electronic underwriting will assess your application by checking with certain databases such as the MIB (Medical Information Bureau) MVR (Motor Vehicle Reports), RX (prescription database) and public information database (which includes soft credit check-doesn’t affect your score)
- If approved, decide on final coverage amount, term, and provide payment information to activate the policy
Approval Time: 10 Minutes
Instant-approval (issue) term life insurance is technically called: instant-approval term life insurance with accelerated underwriting. The difference is that with instant-approval term life insurance with accelerated underwriting no-exam there is no waiting for a phone interview or medical records. The underwriting decision and approval are truly instant.
How To Get Term Life Insurance Coverage Immediately With No Medical Exam
To get term life insurance coverage instantly with no medical exam, phone interview or medical records request, you need to apply with one of the select companies that currently offer this type of application process.
A Word of Caution
If you apply with the wrong insurer and are declined, it will be reported the MIB. This can affect your application with other insurance companies, especially instant issue life insurance companies.
Also, if you apply and the final rate comes back higher than you were expecting and do not accept the policy, instant issue life insurance companies do factor in a high amount of insurance shopping activity with poor disclosure as part of the automated underwriting process.
Understanding Who Is A Good Fit For Instant Issue Term Insurance
It’s important to understand who a good fit for instant issue term life insurance is and who is not.
Instant-decision term life insurance with no medical exam is best for applicants that generally have good: health, credit and driving record– between the ages of 18-60.
Choosing The Right Company
When shopping for instant approval term life insurance it’s very important to choose the right company based on your specific profile. Each instant issue term life insurance company has their own underwriting guidelines which will determine which insurer will approve your application and at the best rate term.
Let’s take a look at how the underwriting for instant issue term life insurance varies from insurer:
- Most instant issue term companies will not allow replacement, a select few will
- Some instant issue term companies will not allow replacement of a current policy in certain states
- Some companies don’t accept visa holders such as an H-1B
- Each insurer has their own maximum BMI guidelines for approval
- Some instant issue term companies go up to age $1 million in coverage in your 50’s while others will not
- The term lengths available based on your current age differ from insurer for instant-approval term insurance
Instant Issue Term Insurance – No Waiting Period
Instant – issue term life insurance does not have a waiting period! Once you are approved and make your first payment to activate the policy, you are covered immediately for 100% of the death benefit. There is no waiting period on a instant issue (approval) term life insurance policy like there is on a guaranteed issue life insurance policy which has a two-year waiting period for natural causes.
Just as Polaroid pioneered instant photography by bypassing the entire process of film development, several life insurance insurtech companies (underwritten by long established, highly rated insurance companies known as “legacy insurers“) are pioneering a new way of applying and securing a term life insurance policy.
If eligible, you can now bypass the traditional, laborious application and underwriting process of: meeting with an agent and filling out an application, scheduling and completing a medical exam, conducting a telephone interview with the insurance company, waiting for your doctors to send back your medical records, waiting for the underwriter to review, answering any questions the underwriter may have before receiving a final decision. This traditional application process can take 3-8 weeks or even longer.
With instant issue term life insurance you simply receive quotes, apply online and receive an instant-decision. You can then decide on your final coverage and term length. Once you provide payment information, review and e-sign you then activate the policy and have immediate coverage. The whole process from start to finish takes about 10-15 minutes.
Underwriting Instant-Approval Term Life Insurance: Eligibility
Instant issue term life insurance applications consist of both health and non-health related questions, similar to a traditional term life insurance application.
Unfortunately, having answering “Yes” to certain medical or lifestyle questions will result in a decline for instant-approval term insurance. At this time, there are certain medical conditions as well as lifestyle factors that pose too much of a risk to be approved instantly with this new streamlined, expedited process.
Know Before You Apply
The best way to avoid a decline on your application is to know the eligibility guidelines before applying. You can do this by giving us a call and we can quickly screen you to see if you are a good candidate for an instant issue term life insurance policy and determine which company will tentatively offer you the best rate and term.
With an instant issue term life policy, the insurance company is taking on a greater deal of risk than the traditional or even a accelerated-underwriting term life insurance no-exam application process. Once you activate the policy, the insurance company has to pay out 100% of the death benefit immediately if anything were to happen to you.
Since a instant issue term life insurance policy is going to cover you immediately for 100% of the policy amount from day one, the insurance company does want to know that you’re generally in good health. They also will ask some non-health related questions to minimize their overall risk.
If life insurance companies don’t properly underwrite their policies, they will have more claims than incoming premiums which would would lead to insolvency. This is why assessing and pricing in the proper risk is essential with insurance companies.
Health Conditions That Will Result In A Decline For Instant Issue Term Life Insurance
As mentioned above, there are some health issues that are just too much of a risk to qualify for instant term life insurance.
We will put the health issues below that typically result in an automatic decline for the companies that offer instant decision term life insurance.
- Cancer in the last 10 years (other than basal cell or squamous cell)
- Covid on the last 30 days
- Diabetes Type 1
- Diabetes Type II diagnoses younger than age 30 or A1c greater than 7 with no medication
- Disability benefits
- Chronic hepatitis
- Chronic kidney disease
- Heart disease or failure
- Hospitalized in past year
- Huntington’s disease
- Insulin use
- Liver cirrhosis
- Mental disorders (excluding mild depression, anxiety or OCD)
- Multiple sclerosis
- Organ transplant
- Peripheral arterial disease
- Sickle cell disease
- Sleep apna
- Stroke (TIA possible if over 5 years ago)
- Unexplained weight loss
These are general guidelines. Each instant issue term life insurance company has their own underwriting guidlines specific to them. Same as with fully-underwritten term insurance, some insurance companies are better than others when it comes to underwriting in certain areas. One company may be a decline with another company may approved you. That is where we can help!
Non-Health Issues That Will Result In A Decline For Instant-Approval Term Life Insurance
In addition to questions about your health, instant issue term life applications will also ask several non-health related questions before they will approve your application. Again, this is to assess their risk statistically based on actuarial data for instant-approval term insurance with no exam:
- Active military
- Adverse credit
- Alcohol or drug abuse in the past 7 years
- Applying outside the United States
- Bankruptcy in the past 10 years
- Criminal activity in the past 10 years
- Dangerous avocation in the next two years such as flying as a pilot, scuba diving below 100 feet or mountain climbing
- Driving license suspended in past 5 years
- DUI/DWI in the last 5 years
- Over the age of 60
- Unemployed (unless a homemaker or student)
These are general guidelines. Each instant issue term life insurance company has their own underwriting guidlines specific to them. Same as with fully-underwritten term insurance, some insurance companies are better than others when it comes to underwriting in certain areas. One company may be a decline with another company may approve you. That is where we can help!
Not Sure If You Will Qualify?
As you can see above, certain health and non-health related application questions can go either way. Mild: anxiety, depression or OCD could possibly qualify. That is where we can be a great resource to you. While we can’t guarantee that you will be approved, we do have the underwriting guidelines and can let you know if you are a good candidate for instant-approval term life insurance and if so, which insurer to apply would be best for you based on eligibility and best rates.
The Truth About Instant Issue Term Life Insurance Policies With No-Exam
The truth about instant issue term life insurance policies with no-exam is that they are designed for applicants that are generally in good health, that have good credit and a good driving record.
Many people have the misconception that instant issue term life insurance is for people in poor health since there is no medical exam. This is not the case!
It’s actually the opposite. Since the insurance company is not conducting a medical exam, doing a phone interview or viewing your medical records, they are taking on a greater risk. Therefore, the insurance companies that offer instant issue term life insurance are looking for applicants that are generally healthy and statistically are a lower risk.
Instant-approval term life insurance policies do typically cost more than if you went through the traditional underwriting process. Again, this is due to the added risk the insurance companies are taking on by bypassing the traditional application and underwriting process of verifying your health with an exam, phone interview and seeing your medical records.
No conversion option
Most instant-approval term life insurance policies do not have a conversion option to permanent insurance. The majority of traditional term life insurance policies have a conversion option to permanent insurance for a specified time. While it is not commonly used due to the cost of permanent insurance, it can be useful to those that have a change in health during the policy and want to continue the coverage when the original term policy expires.
Be Honest On Your Application
It’s very important to answer every question honestly on your online application. Instant issue term life insurance policies as well as traditional application term life insurance policies have a two-year contesability clause.
Here is a notice directly from one of the instant issue companies on why it’s imperative to be honest on the life insurance application:
“Within the first 2 years of the policy effective date, we may review and investigate the accuracy of the information provided during the application and if we discover that there is material misrepresentation, the policy may be subject to rescission declaring it void and null.”
This typically includes looking at your medical records as well as using other sources to make sure the application was completed honestly.
What Is Misrepresentation?
Again, a note from the insurance classifies misrepresentation as “Misrepresentation is any omission, concealment of facts, or incorrect statements on the application that would have caused the insurer to deny life insurance or issue a policy with a lower amount of coverage and/or higher premium had it been aware of this information.”
The bottom line is be honest on your instant issue online application so you and your beneficiaries will have the peace of mind that the policy will payout if you a legitimate claim is filed.
The Best Way To Find Instant Issue Term Life Insurance With No Medical Exam
As you can see, it is now possible to buy an instant issue term life insurance policy online if you are generally in good health and meet the other instant issue term insurance underwriting criteria.
In order to get be approved for a instant issue term life insurance policy, it’s important to know the underwriting guidelines that include health conditions as well as non-health related questions such as your credit and driving history.
How We Can Help Secure Your Instant Issue Term Life Insurance Policy
By working with an independent agent that has access to the top instant issue term life insurance companies, you put your self in the best position to get approved and at the lowest rate available from all the companies that offer instant issue term life insurance.
So, why us?
The advantage of working with us is that we will save your time and money by doing the shopping process for instant issue term life insurance for you.
No other independent agent is better at helping you qualify and shop the market to find the best rate for an instant issue (approval) term life insurance policy.
- Independent- Since we are independent, we are not beholden to any one insurance company. We are unbiased and shop to find you the best rate.
- Term Life Specialists- We specialize in term life insurance. We have placed several thousand term life insurance polices in force since 2009.
- Save You Time and Money- We save you time and money by doing the shopping process for you. Instead of going to each companies’ website and getting a quote or calling and speaking to an agent from each company, we do the shopping process for you to find you the best rate.
- No Charge- The best part, there is no charges for our services. The same price you receive from us is if you went to the insurance company’s website directly and applied. In fact, by law it’s not allowed to be different. We are compensated by the insurance companies for bringing them the business.
If you are looking for an instant issue term life insurance policy, want to see if you qualify and which company will offer you the best rates, call us at: 1-800-676-5429. We’re here to help.