What is instant coverage and what can it do for you?
There are a lot of things that are “instant” these days—instant ramen, instant replays, instant regret, etc. Technology has helped us get more in tune with having something right at our fingertips. It shouldn’t be a surprise that life insurance can also come instantly. But what does “instant” mean when we say instant term life insurance? And what are the pros and cons of instant term coverage when compared to a lengthier process? Keep reading below and we’ll go over just what we mean.
The Wyshbox Blog
- Pros and cons of instant term life insurance coverage
Pros and cons of instant term life insurance
Nothing is perfect, even me (if you can believe it). There are always strengths and weaknesses to whatever subject you’re talking about. Instant term life insurance coverage is no different. What do we mean by “instant?” Well, that depends. Each insurer may have their own definition of instant. For us at Wyshbox, this means you can get covered within minutes of being confirmed via underwriting and signing your membership documents.
So what are the upsides and downsides? Below we’ve listed three characteristics of term life insurance and their specific pros and cons.
No medical exams (*subject to company)
Pro: no doctors and no needles
Con: reliance only on medical files
Some insurers (like Wyshbox) don’t require medical exams, while others do. What does a medical exam require? Well, they can look at your height, weight, blood pressure, any diagnoses, and things like blood and urine samples. But sometimes these exams aren’t required. How can this be? Well, insurers are able to access your existing medical records when they start the underwriting process. So insurers don’t always need you to go into a doctor’s office to get that information.
Of course, there is a tradeoff. Without a medical exam, underwriters have to look at medical records on file. This means that if you have less than stellar health, coverage may be harder to come by. So if you’re going with instant term life insurance coverage, make sure you know what’s on your medical record before applying. And if you’re in great physical shape, then instant coverage could be right for you.
Easy application process (*subject to company)
Con: no agent involved
With no medical exam, your application could possibly be approved within a matter of minutes—all while binging your favorite shows! And the applications are straight to the point too. Some areas you can expect to fill out are:
- Tobacco use
- Medical history
- Health condition
There is a bit of a drawback. Convenience generally relies on algorithms, which take your information to calculate risk. If you’re rejected, you have to keep on your search. There are life insurance agents whose jobs are to find you the right company and coverage for your needs. They can work with you to find the right policy, and may even help you contest rejections if they feel it’s unwarranted. Working 100% digital is convenient, but things can get lost in translation if you’re not careful.
Pro: coverage at lower limits
Con: higher premiums
For a lot of insurers, instant term life coverage is about getting you protected, no matter where you are in your financial journey. Even if your coverage amount is capped at a lower level, you can still receive some protection for you and your family. With no medical exams and convenient application processes, insurers often want to get you coverage.
A drawback here is that, because insurers are often taking you at your word, you may end up paying higher premiums. Without a medical exam, insurers are taking a risk that you’re as healthy as you say you are. They want to protect themselves too. So instant term life coverage can keep you protected, even at lower levels, but you may pay a little bit more for the convenience of it all.
We’ve only listed a couple of pros and cons of instant term life coverage here. But we hope this points you in the right direction. If you’re positive that your medical history, lifestyle, etc., are strong enough and you’re looking for convenience, instant coverage could be right for you. But only you can decide what works best. Now, we’re going to plug ourselves a little bit here. Wyshbox offers flexible, term life insurance that can grow with your needs. If you want to know more, head on over to see what kind of coverage works best for you and take it from there.