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When you’re used to the convenience that comes with ordering everything online, buying life insurance can seem painfully old-school.
Until recently, if you wanted to purchase a lot of life insurance at a low price, you typically had to fill out paperwork, undergo a medical exam, give a urine sample or get blood drawn, and then wait 30 to 90 days to get a policy.
But that’s changing. With some companies you can apply for life insurance online in just a few minutes and get coverage that reaches into the millions of dollars without the need for a medical exam.
What is instant life insurance?
Instant life insurance refers to coverage that’s quick to apply for and doesn’t require a medical exam. But these online life insurance options aren’t like guaranteed issue life insurance, the small and pricey policies sold to seniors.
Instead, instant life insurance typically uses a process called “accelerated underwriting” to estimate rates. An insurer feeds your data into algorithms that calculate your risk of dying early. This can provide enough information for the company to make a quick decision and offer coverage on the spot.
Instant policies are often term life insurance policies lasting 10 to 30 years.
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How to buy life insurance online
Since the entire process is online, applying for and buying a policy is fairly seamless:
Step 1: You apply online by filling out a life insurance application with your personal and contact details. You’ll also answer some basic questions about your health and lifestyle.
Step 2: With your consent, the company gets more information about you from various databases.
For example, it can find out what medications you’ve taken by searching prescription databases. It can look at your motor vehicle record to see if you’ve had any tickets or accidents in recent years. And it can check data from the MIB Group — made up of and owned by hundreds of member insurers — to see if any health conditions came up when you applied for individual health or life insurance with other companies.
Step 3: You will usually get a decision within minutes of applying. There are three possible outcomes:
- Approved. Once you sign off on your policy and pay your first premium, your coverage goes into effect. All of that can happen on the same day and you won’t have to take a life insurance medical exam.
- Denied. You can apply for online life insurance, but coverage isn’t guaranteed. You may not qualify for a policy based on factors like your health, lifestyle or age.
If you’re denied, you can still apply for a traditional life insurance policy, which may take a few weeks. Otherwise, you can apply for a guaranteed issue policy and skip the health questions and medical exam.
- Referred to underwriter. Sometimes, insurers need more information about you before they can make a decision. The insurer may send your case to an underwriter who might reach out to ask more questions. An underwriter is a professional who evaluates your risk and decides if you’re eligible for coverage.
🤓 Nerdy Tip
Some companies fast-track you through the application process but reserve the right to request a medical exam if needed. This means you might be approved instantly or asked to complete additional steps before getting an answer. Types of online life insurance
When shopping for a life insurance policy online, you may see terms like “automated underwriting,” “accelerated underwriting” and “simplified issue,” which can mean the same thing.
To simplify your shopping experience, these are the types of life insurance you can usually buy online and what you can expect from the application process.
Instant term life insurance
Many online life insurers offering an instant decision are selling term life insurance through automated underwriting. Automated underwriting just means there isn’t a human involved in the insurer’s initial approval process.
The majority of online life insurers that issue instant term policies use accelerated underwriting. Accelerated underwriting is sometimes referred to as fluidless underwriting and it's exactly what it sounds like. You’ll get a faster application process through the use of data that avoids medical exams or bloodwork.
These are a few of our picks for the top-rated online insurance companies that offer instant term life insurance.
| Insurer | NerdWallet rating | Instant coverage available | |
|---|---|---|---|
| Best overall | | $100,000 to unlimited. | |
| Best for adjustable coverage | | $100,000 to $3 million. | |
| Best for instant burial insurance | | $10,000 to $3 million. | |
| Best perks for parents | | $100,000 to $1.5 million. | |
| Best for policy add-ons | | $100,000 to $2.5 million. | |
| Best for instant whole life | | $10,000 to $500,000. | |
| NerdWallet rates insurers at the company level, not the policy level. This means our star rating reflects the company as a whole, and not its instant life insurance policy specifically. | |||
Final expense insurance
Seniors and others with health conditions can also apply for guaranteed issue policies online. These are often whole life policies for lower coverage amounts that can be used to pay for burial and other end-of-life expenses.
Most of these final expense policies sold online use simplified issue underwriting.The application uses fewer data points than accelerated underwriting to determine whether to issue you a policy and how much you’ll pay.
In general, the more data the insurer is able to assess, the more they are able to offer affordable policies with higher coverage limits. If the insurer uses only a few pieces of your information such as your age and gender, the cheapest rates may not be available.
These are the top-rated insurers who offer burial insurance, often sold as guaranteed issue life insurance.
| Insurer | NerdWallet rating | Age eligibility | |
|---|---|---|---|
| Best for customer satisfaction | | Issue age: 45 to 80 (50 to 75 in NY). | |
| Best for seniors | | Issue age: 50 to 85 in most states (50 to 75 in NY). | |
| Best for bundling | | Issue age: 50 to 80. | |
| Best for instant coverage | | Issue age: 50 to 80. | |
| Best for accessibility | | Issue age: 45 to 85 (50 to 75 in NY). | |
| NerdWallet rates insurers at the company level, not the policy level. This means our star rating reflects the company as a whole, and not its burial insurance policy specifically. | |||
Is buying online life insurance worth it?
If you need life insurance ASAP or want to skip the medical exam, buying a policy online may seem like a good solution but it has some drawbacks.
Should you buy a life insurance policy online?
While it’s possible to get instant term life insurance online, it might not be the best fit for everyone. If you fall into one of the following groups, other kinds of coverage may be a better choice.
Older, with health issues ❤️🩹
You may not be eligible for instant term life insurance but you can buy guaranteed issue life insurance online, which doesn't require health questions or medical exams. Sometimes referred to as burial insurance, these are often small whole life policies that cover final expenses.
Approval is guaranteed if you’re within the eligible age range (typically 50 to 85).
Healthy, on a budget 💸
If you're not in a hurry to get coverage, life insurance with traditional underwriting — including a medical exam — may end up being more affordable for you. You may also be eligible for a higher coverage amount. See our list of the best life insurance companies to get started.
If you do decide to get online life insurance, keep these tips in mind:
- Know the length and amount of coverage you need. Before you apply, calculate how much life insurance you need and how long you want it to last. This may narrow down your options as some online life insurers offer limited term lengths or small instant policies.
- Be realistic about your chances of approval. Generally, instant life insurance is open to healthy people who lead safe lifestyles. If you’re trying to buy life insurance with a pre-existing health condition, a hazardous job or a poor driving record, you might want to apply for a traditional life insurance policy.
- Look at policy features. Are you hoping to customize your policy with life insurance riders? Do you want the option to convert to a permanent policy later on? If so, factor these features into your decision.
- Shop around. Rates are likely to vary, because insurers weigh data differently. As always, it’s useful to compare life insurance quotes before buying coverage.
