Back in your parents’ and grandparents’ day, buying life insurance was a pretty involved ordeal, but these days it’s an entirely different experience. You don’t have to leave your house or even put on pants. You can compare insurance rates from your living room while The Walking Dead streams in the background, all while eating kettle corn and drinking Guinness. You can even get approved without getting that annoying medical exam thanks to accelerated underwriting life insurance.
Where life insurance companies used to rely on medical exams to decide whether you qualify for coverage, they are now able to use readily available data and statistics to predict how likely you are to live beyond your term life insurance policy. As a result, they are able to take the life insurance underwriting process down from several weeks to a few days.
But that doesn’t mean you’re getting shortchanged or buying a lesser product. Accelerated underwriting life insurance lets you speed up the shopping process without sacrificing protection or cost.
1. Accelerated underwriting life insurance is easier and faster
The big benefit of accelerated underwriting is that it takes less time and a lot less work. Once you apply, you usually need to do a medical interview over the phone. They’ll ask you questions about your medical history and lifestyle, then take some time to compare your answers to the results in various databases they have access to. If all checks out, you may qualify for accelerated underwriting life insurance without a medical exam.
Worst case scenario, you may still have to take the medical exam. In that case, however, the insurance company will happily send someone to your home to conduct the exam at your convenience. And, either way, accelerated underwriting coverage is typically in force much faster since new technology lets them skip some of the more tedious steps of the process.
2. You’re buying the same high-quality policy
You can get accelerated underwriting life insurance in a fraction of the time as traditional life insurance. That might make it feel like a stripped down, “lite” version of life insurance. And that makes people wary that what they end up with won’t provide the same level of coverage as if they apply through the standard process.
But the truth is, all of the same information is taken into account when you apply, and the life insurance company comes to the same conclusion on your cost and coverage. You won’t be skimping on coverage just because you speed up the application process. It can be hard to believe there isn’t a catch, but you can rest assured that your policy will work the same way regardless of the underwriting process you go through.
3. It doesn’t cost more
Accelerated underwriting life insurance relies heavily on data and statistics instead of digging deeply into your health and background. Luckily, using this new technology doesn’t cost you.
Some other no-medical exam life insurance products, like simplified issue life insurance, add additional costs because they aren’t as thorough in judging your health and health history. But accelerated underwriting life insurance won’t. That’s because accelerated underwriting life insurance is collecting the same information as the traditional application process, just in a different way, so it can offer the same coverage at the same rates you’d be paying anyway.
Even other term life insurance policies with extra perks, like return of premium life insurance, sometimes have an addtional cost associated with them. But that’s not something you have to worry about with accelerated underwriting life insurance.
The bottom line
Accelerated underwriting life insurance isn’t for everyone; there are usually coverage limits on these types of policies, and you need to be particularly health to qualify. But if you do qualify, accelerated underwriting can provide you with life insurance in a fraction of the time without cutting any corners.
So, don’t be worried if you find yourself considering accelerated underwriting. Chances are, you can apply for life insurance and protect your family in less time than you think.