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Buying life insurance doesn't have to be difficult

Due to the COVID-19 pandemic, many Americans are taking a serious look at life insurance. Fortunately for customers, insurance companies have been working hard to make the process of buying life insurance easier than ever.
Dec 15th 2021
4 min read
Learn how insurance companies are making it easier for people to buy life insurance.

The traditional way to buy insurance

Many people who grew up with the internet are turned off by the idea of buying life insurance the old fashioned way.

Buying a life insurance policy the traditional way may require that you meet in person with a broker or agent. You may have to fill out a lengthy questionnaire and go through an in-person interview. Following that, you may have to make an appointment for a medical exam with a doctor and submit blood and urine samples.

The entire approval process can take as long as 45 to 60 days.

Fortunately, companies now use digital technology to help you buy insurance online and, in some cases, get approval within minutes or even seconds.  

 

Technology saves you time and effort

These days, companies can use computer algorithms and a variety of databases to offer quick life insurance estimates and approvals. Once you submit your information in an online application form, the insurance company’s software will access other data about you such as medical, pharmaceutical, and driving records—assuming, of course, that you give them permission to do so. The software will then compare your profile to millions of others to determine whether the company will offer you a policy and how much your premium will cost.

Thanks to these technological advancements, you may be able to purchase a policy to help protect your family without even leaving the comfort of your home. How fast you are approved for a policy depends on the methods and technology used by the company, with some offering approval within seconds and others taking a couple of days. It’s important to be aware that rejection is also possible.

Three kinds of life insurance policies are commonly offered through these new high-tech methods.

 

Three kinds of easy-access insurance

  1. Simplified issue life insurance generally offers the fastest approvals. Typically, after starting an application online, you only have to fill out a brief questionnaire. Sometimes you may also have to answer additional questions over the phone. Be aware that simplified life insurance can cost more than traditional life insurance, and offer lower policy limits. However, many people find the convenience of being able to get life coverage quickly and easily worth the possible difference in cost.
  2. Accelerated underwriting life insurance can take longer to approve than simplified life insurance. This type of insurance follows an approval process that is more similar to traditional life insurance underwriting. Underwriting is the process an insurance company uses to decide whether to accept or reject an application for a policy. By evaluating risks, underwriting also helps determine life insurance rates. In this case, underwriting is sped up but not completely simplified. You will typically have to give more information about yourself than you would for simplified life insurance, and the company will likely consult more records about you. In some cases, you may even have to submit to a medical exam. On the other hand, you can often get more coverage than you would with simplified issue insurance. In addition, the cost of accelerated life insurance is closer to traditional life insurance because it is easier for companies to measure risk. Depending on the company and the policy, a decision on whether or not you’re approved may take minutes or a several days.
  3. Guaranteed issue life insurance is designed for people whose health might make it difficult for them to get the other types of life insurance. You don’t have to answer many questions to get this kind of insurance. In some cases, you are required to be a certain age before you can apply. The premiums for guaranteed life insurance are typically higher than simplified or accelerated underwriting life insurance, while the coverage is usually lower—often, enough to cover a funeral and some small debts.

 

Conclusion

Because we live in the digital age, helping to protect your loved ones with life insurance no longer has to be a time-consuming ordeal. You may be able to buy a policy on the internet in minutes, the same way you would make many other purchases. With different kinds of easy-access life insurance policies available online, you might find you have all the options you need to purchase a policy without even picking up the phone.

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