Fill in the form below for a FREE, no obligation quote NOW!
We live in a world where speed suddenly is of the essence. That idea doesn’t fall short in life insurance products, either.
As our personal and professional lives get busy, there leaves little time to ponder essentials that take a longer time to secure. But that doesn’t mean that many people will omit the idea of life insurance, as there are always concerns about how your loved ones will live should you suddenly die.
That’s why many insurers today offer avenues to get life insurance coverage almost instantly. This guide will provide information about instant life insurance cover and the details surrounding securing a policy.
Instant life insurance cover, or instant life insurance, is a plan that finds definition in its namesake. They are policies under the life insurance umbrella that can get set up relatively quickly compared to formal insurance applications.
That means that a prospective policyholder searching for a life insurance plan can compare the market and select a policy, allowing coverage within a short timeframe of deciding. Many insurers can offer a cover in minutes, pending they meet their requirements.
So what’s the rush for life insurance cover? Why are so many providers giving potential customers this option?
Today’s fast-paced environment leaves many people with little time to follow the traditional life insurance work. Many can’t spare extended periods to answer long questionnaires and undergo medical exams. Instant life insurance is a practical solution when someone gets concerned about the financial well-being of their loved ones.
Not all insurers have the same criteria when applying for instant life insurance quotes. However, information to find who’ll offer fast cover is available from expert brokers.
So what are the types of instant life insurance generally on offer?
The primary types of instant life insurance are term-based, including level and decreasing. We’ll outline the definition of each below.
Level-term life insurance is a policy where the amount paid out stays the same should you pass away at any point in your agreed term. The beneficiary will receive a guaranteed lump sum whether you are a few years into the policy or towards the end of the time.
People choose this policy where their loved one’s financial protection is a concern should they suddenly pass away.
Decreasing term life insurance is when one takes out a policy where the payout decreases over time. That means the beneficiary will receive less should you pass away unexpectedly towards the end of the agreed term.
These policies are usually debt specific, designed to cover remaining expenses such as mortgages should the policyholder die.
Applying for these life insurance policies means you’ll have to answer your health and lifestyle questions. But does that mean you’ll have to undergo a medical exam to confirm what you’ve claimed in your application?
We compare plans from the leading life insurance providers
Generally, you won’t need a medical exam to follow up with your life insurance application, or the concept of ‘instant’ becomes obsolete. However, that doesn’t mean that insurers will omit the requirement entirely.
Higher-risk clients may get asked to undergo a medical exam, which includes those over 50. If you want life insurance without getting a health and lifestyle check, an over 50s plan may suit your needs better.
It is still possible for higher-risk applicants to get instant life insurance. However, the premiums will be higher.
Sometimes clients prefer the prospect of instant life insurance coverage over waiting for an alternative plan and will pay the excess cost to secure the policy. Expert brokers can assist in gauging the best options should you fit into the category of a high-risk client.
Now that we’ve defined the most popular types of instant life insurance, what if those plans don’t suit my needs? Is instant whole-of-life insurance a possibility?
Whole-of-life insurance is where a policyholder will pay premiums for the rest of their life until they die, guaranteeing a payout to the beneficiary. However, given the nature of the policy, instant whole-of-life insurance isn’t always possible.
Most insurers will require more information about your health and lifestyle before offering a policy that commits to your entire life. If you fit into the category of exceptional well-being, you may be able to obtain instant cover.
It’s worth noting that whole-of-life insurance is a lifelong commitment to paying premiums. Applicants should carefully consider the options before proceeding with instant whole-of-life insurance.
For example, young adults in good health may end up paying premiums for the rest of their lives that amount to more than the actual payout. Should you require more information about your options, speak to expert brokers knowledgeable about instant life insurance.
So now, understanding the different instant life insurance policies, how are they calculated to get quick quotes?
As mentioned earlier in the guide, not all insurers have the same criteria and base their plans on various factors. However, the following aspects comprise most of how providers calculate their life insurance premium quotes.
The factors determined include:
The general principles insurers gauge their premiums on is the risk of you passing away due to health and lifestyle factors. If that risk seems higher on your application, your premiums will be higher. Talking to knowledgeable brokers can help secure the best rates for your life insurance policy.
The actual figures of how much life insurance costs will fluctuate broadly, meaning it’s challenging to provide figures for instant life insurance. You’ll likely see the lowest prices if you are a young adult in impeccable health. The monthly payments will be higher if you are an older person with pre-existing conditions.
So are there other types of instant life insurance that may suit our needs and time availability?
Other instant policies stem from the different generally available types of life insurance. Those plans revolve around the terminal and critical illness coverage, as defined below.
Life insurance with terminal illness cover means you’ll receive a payout should you get diagnosed with the condition that gives you less than 12 months to live. These instant policies ensure you’ll have cash for yourself and your family to pay for care and secure them financially for your period of illness.
You’ll have the payout to help disperse finances, cover funeral costs, and take care of any outstanding expenditures before you pass away.
Life insurance with critical illness cover differs from the above plan because the payout covers non-life-threatening conditions. If you get a diagnosis listed under the policy terms, you can make a claim.
The funds received can help pay for your care, cover lost income, or provide financial protection for your loved ones when you cannot do so.
The waiting period of an instant life insurance policy refers to the timeframe you’ll have to wait before a claim gets paid should the policyholder pass away. Because there’s a stigma around the word ‘instant’, many believe they’ll receive their payout as quickly as they confirm their plan.
Most policies will start covering you from the moment of confirmation from your provider. That means your beneficiary is eligible for a payout should die from natural or accidental causes after you purchase the plan.
However, some scenarios have waiting periods before the insurer will payout on the instance of death. These circumstances include suicide, where cover only begins 12-24 months after confirmed policies, and over 50s plans, within the same period.
Not all insurers have the same process, however. Depending on their guidelines and the type of life insurance you take out, some may differ in their waiting periods.
So finally, what happens if you can’t get an instant decision on your life insurance application?
Many insurers will provide platforms to easily facilitate a decision on your life insurance applications, where policies get regularly approved for applicants with varied circumstances. However, what factors could prevent an instant decision? And what happens if you aren’t able to get a solution?
Sometimes insurers cannot make instant approval decisions on your applications because of extenuating circumstances. These factors include poor health, a precarious medical history, or questions about the information on your application.
If you see a rejection on your application, that doesn’t mean you can’t apply again for life insurance. There are expert brokers available to consult on how to ensure your instant life insurance application gets accepted.
Get in touch with them to understand how to get covered quicker and find the right life insurance plan for you.