Instant Term Life Insurance

Written by Stephanie Dula
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Life and other insurance policies typically involve a certain amount of time between the completion of an application and when the coverage goes into effect. This waiting period is used by the insurer to accurately determine the risk involved for each person who applies. But there are companies out there whose products promise instant coverage upon initial payment.

What Is Instant Coverage?

How can life insurers promise to cover someone before they have time to thoroughly examine one's health status and lifestyle? Well, they may issue an instant policy, but it may only provide protection for a short time until they are able to collect more medical information. This validation process is called underwriting, and once it has been completed, the standard term or permanent policy will be issued.

Each insurance provider uses unique guidelines and criteria for underwriting. They may include an examination of one's driving record, medical history, family history, and lifestyle. They run each application through this underwriting formula to determine which risk classification each applicant belongs to. This risk classification determines the amount of premiums to be paid by the policyholder.

The insurer may also ask a few questions up front to help determine instant quotes and initial rates for the temporary policy. These may include broad questions regarding tobacco use and general health status. It's important to keep in mind that quoted rates may be adjusted after the more thorough underwriting validation.


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