Today’s world is fast-paced, and people look for things that can be done instantly. Keeping up with the trend, many insurance companies now offer Instant insurance policies. These policies were a little pricey compared to the ones with medical exams.
However, now things have changed, and people are today getting competitive prices. This is because 75% of respondents think the price is more important than convenience when buying life insurance. Getting Insurance has become quicker, and companies are getting it done in minutes.
What is Instant Issue Insurance?
The instant issue is one of the quickest ways to get insurance. It offers coverage that is not only quick to apply but also does not involve a medical exam and is also known as no medical exam life insurance. It consists of a process of accelerated underwriting to get things done faster.
The companies are embracing the 21-st century technology and speeding up the underwriting process. It helps in availing fully underwritten insurances efficiently. However, one should not confuse the instant issue with a guaranteed whole-life policy. Instant policies are like term insurances that generally stretch for 10-30 years.
How Does Instant Issue Insurance Work?
The process will require you to fill out an application form with a few questions related to your lifestyle and health. Once the application is filed, the unique approach of accelerated underwriting begins. The procedure involves underwriting policies with the help of advanced technology and third-party data for rapid approval. The underwriting method and the third-party data come together to evaluate the risks of instant insurance.
The information received from the applicant and data from third-party sources determines the insurability risk. A person does not have to undergo any medical exam. The stakes are calculated based on your information regarding health, job, lifestyle, and even driving skills. Applicants generally get a decision within minutes after the submission.
No Medical Exam Required
A medical exam will not be taken if someone qualifies for the instant issue insurance. The information the applicant and the third-party data provides is enough to calculate the risks. If the applicant does not receive approval, they will be provided another option. However, in that case, a medical examination might be essential.
Accelerated underwriting is fast; applicants take about 10 minutes to complete the application. The outcome is received within minutes of the application. Once approved, an individual gets the opportunity to review the entire policy. One can approach making changes if required. The process has been awe-inspiring and changed the old-school methods.
Understanding Instant Issue Underwriting
Underwriting is a process that involves scrutinizing the data submitted by an applicant. It is done by comparing the same with other sources to approve or deny an application.
Car insurances, loans, mortgages, etc., are all backed by the underwriting method. Traditional life insurance underwriting is a tedious task and comprises several factors. Health, lifestyle, finance, etc., all come together to reach a final decision. However, with the advancement of technology, it has been possible to fasten the process.
The instant issue policies are based on accelerated underwriting methods. Here, a computer performs all the labor instead of a human. When it comes to instant life insurance, it is a computer that scrutinizes your application based on several algorithms. It is cross-checked with third parties like MIB to accept or reject an application.
Most instant insurances can be achieved 100% online, but it is always better to have an insurance agent on the side. One must decide on the coverage length and amount beforehand. Review the policy features minutely to understand the benefits. Do ample research, compare the market policies, and choose the one that suits you best.