AT A GLANCE
- Sells term life insurance online, without requiring lab tests or medical exams.
- Available nationwide, except in Georgia and New York.
- Applicants who qualify can get covered in minutes.
Bestow sells term life insurance policies online, offering nearly instant coverage to those who qualify. Applicants answer questions on Bestow’s mobile-enabled website, and the company uses data and algorithms to make decisions and set prices. The Dallas-based company launched in 2017 and began selling policies in 2018. It now does business in all states except Georgia and New York. Bestow says it plans to offer coverage in Georgia soon and anticipates expanding to New York later in 2019 or 2020.
Find out more about each element that goes into our Bestow review by clicking below.
A.M. Best Financial Strength Rating: A+ (Superior)
Bestow sells policies from the North American Company for Life and Health Insurance, a member of Sammons Financial Group Inc.
North American’s financial strength is “superior,” according to ratings firm A.M. Best. Financial strength is important because it indicates an insurance company’s ability to pay claims.
Consumer complaints: Better than the median
North American Company for Life and Health Insurance, which issues the policies sold by Bestow, drew fewer than the median number of complaints about individual life insurance to state regulators in 2017, compared with life insurance companies of similar size.
The National Association of Insurance Commissioners calculates a “complaint ratio score” for insurance companies. The score is based on the number of complaints to state regulators, adjusted for market share. The median score is 1, and a score less than 1 means fewer complaints. North American had a complaint ratio score of 0.31 for individual life insurance in 2017, the latest year for which data is available.
More about Bestow
Bestow says it’s on a mission to make term life insurance “simpler and more human.” The startup is among companies that specialize in selling fast life insurance. Bestow takes information from your online application, pulls instantly available data about you (with your permission) and uses algorithms to decide whether you qualify and set the price. Everyone who qualifies can get covered right away, without having to take a medical exam.
The company offers term life insurance with terms of two, 10 and 20 years. The two-year policy is geared to people with a short-term need for coverage or those who want to get coverage in place while they evaluate their needs. Up to $500,000 is available.
The 10- and 20-year plans are geared to people with longer-term coverage needs, such as parents. Up to $1 million is available.
You can be denied for coverage, and older customers are not eligible to apply. You can apply for a 20-year policy if you’re 21 to 45, with one exception: If you’re a man who uses tobacco, the maximum age is 43.
For the two-year and 10-year policies, the age range is a bit wider: 21 to 55.
The company does not sell permanent life insurance such as whole or universal life policies.
Life insurance options
|Products offered||Term life insurance.|
|Term options||2, 10 and 20 years.|
|Coverage amount available||Up to $500,000 for 2-year term.
Up to $1 million for 10- and 20-year terms.
|Eligible ages for applying||For 20-year policies, 21 to 45 (21 to 43 for male tobacco users); for 2- or 10-year policies, 21 to 55.|
|Medical exam required?||No.|
|Can be declined for coverage?||Yes.|
|Available in||All states except Georgia and New York.|