What Is Instant Life Insurance?

Can You Buy Life Insurance Online Instantly?

If you qualify, instant life insurance policies can be an affordable, easy option that cuts your application evaluation down from weeks to days, or even minutes. For those in good health who want life insurance quickly, there are instant options with a wide range of coverage amounts.

Instant life insurance policies are usually term life policies, which covers a certain time frame, such as 10, 20 or 30 years, as opposed to permanent life, which provides coverage for as long as you're alive and has a cash value in addition to the death benefit.

While instant life insurance applications don't require a medical exam, you'll likely need to answer some health-related questions and provide personal information to make sure you qualify.

Not all companies that sell life insurance also offer policies with accelerated underwriting, so shop around and compare options to make sure you're selecting a plan and carrier that suits your needs.

Instant Life Insurance Application Requirements

When you apply for an instant life insurance policy, the insurer will evaluate your risk quickly by asking questions through an online form. Some common requirements include:

• Health: Insurers will ask if you have a history of certain medical issues (such as cancer or diabetes), and may request details about your recent health.
• Smoker status: Smoking might disqualify you from instant life insurance, but if that's the case, there are other life insurance options for smokers.
• Life insurance history: You may be asked if you've been denied by a life insurance provider before or if you have existing life policies.
• Personal information: The insurance provider will need basic information like your name, date of birth, height and weight, and your Social Security number to evaluate your application and issue a policy.

Should You Buy Life Insurance Online?

If you're thinking about buying a life insurance policy online, here are some benefits and drawbacks to consider.

Pros of Buying Life Insurance Online

• It's fast. When you work with an insurance agent, the process can take several weeks to complete, leaving you uncovered for longer. But if you go online, you can get approved much more quickly.
• It's convenient. If you're busy, you don't have to worry about scheduling an appointment with an agent and go through the whole process in person.
• You can avoid bad actors. Many insurance agents work strictly on commission. As a result, some may steer potential clients to more expensive policies like whole life in order to increase their income, even if it's not the best option for the customer. Applying online may require doing more research on your own, but it can help you make a more educated decision and avoid being pressured to buy the wrong policy.

Cons of Buying Life Insurance Online

• It's not appropriate if you have health issues. Life insurance can get more complicated—and expensive—if you have health issues. If you're in this situation, it may be better to work with an agent who better understands what your options might be and can help you find a policy that meets your needs.
• You're on your own. Even if you can do your own research, life insurance can still be a complicated product to understand. While some insurance agents may not work entirely in your best interest, it's possible to find a knowledgeable agent you can trust and get good advice from. If you'd prefer the help of a licensed professional, you can start by asking family members and friends for recommendations.
• You want a permanent life insurance policy. If you want to buy a whole life or universal life policy, working with an agent may be your best bet. This is because many insurers don't offer these policies online. Even if they do, it's generally better to have an agent explain the ins and outs of the process since it's more complicated than purchasing a term life insurance.
• You'll pay more. Instant life insurance is convenient and fast but it can also carry higher premiums than getting a traditional term life insurance policy.
• You may not have as much coverage. Many instant life insurance policies have limits that max out at $1 million, which may be less coverage than you want.

How to Buy Life Insurance

If you've decided to buy a policy online, here are steps to take to find the best option for you:

1. Determine how much you need. Once you've settled on what type of life insurance policy you want, it's time to figure out coverage amounts. Online life insurance calculators can help you figure out how much coverage you need. Think about what you want the policy to cover, such as income replacement, future college costs or mortgage payments.
2. Shop around. Every life insurance company has its own way of determining premiums, so it's a good idea to compare quotes from several providers before you settle on one. Consider using an online broker, which can make it easier to compare quotes from multiple carriers in one place. You'll typically need to provide some personal information to view quotes. Once you get the quotes, make sure you're comparing policies with the same terms.
3. Pick a provider and apply. Once you've decided on the policy, apply directly with the insurance company. You may need to provide personal information, as well as details about your occupation, medical history, hobbies and other lifestyle information that may affect your rate.
4. Set up a payment plan. If your application is approved, accept the policy and set up automatic payments. With some insurers, you can save if you opt to pay annually or semi-annually instead of monthly.

The Bottom Line

Instant life insurance coverage policies allow people to apply for and quickly get approval for life insurance coverage. Overall, it could be an easy and convenient process if you're relatively young and healthy. Although the process is more streamlined, premiums for instant life insurance may be pricier and coverage levels may be more limited than for traditional policies.