How Long Does It Take To Get Life Insurance?
B.A. Risk Management
Life Insurance Agent
If buying life insurance was as easy as grabbing dinner at your favorite fast food joint, everyone would have it. The reality is that getting approved for a policy is a little more complicated than pulling up to a drive-thru window and for some people, it’s not a quick process. However, we are here to make it easy to buy life insurance online.
So, how long does it take to get life insurance? The length of time it takes to get your policy approved depends on a number of factors and it’s different for everyone. If buying life insurance is on your to-do list, knowing what the process involves can give you an
idea of when you’ll get the green light on coverage. It typically takes 4-6 weeks to get life insurance if you opt for a fully underwritten policy. If you choose a non med life insurance policy, you can get life insurance in as little as 24 hours.
See this article on the life insurance application process.
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What the Life Insurance Application Process Involves
The first step in purchasing life insurance is getting a rate quote. You can do this in just a few minutes online and once you’ve got a quote, you can move on to the more time-intensive step of filling out the application. To get an idea of how much it can cost, you can also see our life insurance rates by age page.
Depending on which insurance company you’re going through, you might have the option of doing this online as well. Some insurers, however, require you to fill out the forms by hand. In either case, completing the actual application itself can take anywhere from a few minutes to a couple of hours, depending on how detailed it is and how busy you are.
Once you’ve finished up the application you have to send it back to the insurance company for their review. If you’re doing it online or faxing it, they’re obviously going to get it much more quickly than if you have to mail it in. Within 24 to 72 hours of receiving your application, the insurance company will review it and schedule a medical exam.
The medical exam usually takes place within a week or two and it can be conducted in your home or at a doctor’s office. During the exam, you’ll be asked questions about your health and the person conducting the exam will measure your height, weight and blood pressure. You’ll also have to provide a blood sample and in some cases, a urine sample as well. Overall, the exam itself is relatively short, typically lasting less than an hour.
How Long Does Underwriting Take?
After you’ve completed the application and gone through the medical exam, the insurance company begins the underwriting process. How long this takes depends on how quickly the lab is able to process the results of your medical exam, whether the exam turns up any serious pre-existing conditions and whether the insurance company decides to pull your complete medical record.
In terms of the processing time for the health exam, it can take up to four weeks for the underwriter to get these results. If they request your medical records, they can be delivered in as little as one day or take up to six weeks to find their way to the insurance company, depending on how quickly your doctor responds. This is usually the main factor that determines how long it takes to get life insurance.
The insurance company begins the final review process once all of your information has been received. At this stage, the insurer is crunching the numbers to determine how much of a risk you pose, based on your age, profession and overall health. If you have to answer follow-up questions because you have a medical condition such as diabetes or high cholesterol that can slow things down.
When you’re approved, the insurance company will write up the policy and contact you with the final paperwork. You’ll need to review the terms of the policy and arrange payment of the premiums. This can take between five and seven business days to coordinate, depending on whether you’re paying via bank draft, check or credit card. Once you’ve signed on the dotted line and paid up, you’re covered by the policy.
How Long Does Approval Take?
From start to finish, the approval process for getting life insurance can take as long as two months to complete. If you’re interested in getting coverage sooner than that or you just don’t want to go through the trouble of a medical exam, a no exam life insurance policy might be your best bet. However, these policies are usually limited to $1,000,000 of coverage.
With this type of coverage, you can complete the application online and there’s no medical exam required. Instead, the insurance company uses your answers to the health questionnaire section of the application to gauge your risk level. In terms of the turnaround time, you can get approved for life insurance in as little as 24 to 48 hours and the policy can take effect immediately. Read more about the best life insurance companies for no exam life insurance.
When you’re comparing no exam policies to traditional term life or whole life coverage, one key difference to note is the cost of the premiums. Because you’re forgoing the medical exam, the insurance company compensates by charging a little more for the policy. No exam policies are a much more convenient alternative if your focus is on saving time but it’s important to balance that against the long-term cost.