Life Insurance Made Easy by Accelerated Underwriting

March 27, 2018

Individuals with good credit and good health should find it easy to obtain life insurance without an exhaustive interview and medical exam, and that is why a concept known as accelerated underwriting was introduced. In this case, one does not need a medical exam to be fully underwritten, and one can apply for life term insurance policy that can protect their family needs without having to worry about the lengthy medical examinations.

How Accelerated Underwriting Works

Many insurance companies are yet to introduce accelerated underwriting, but there are some that have been offering the service for many years. However, it is important to point out that this policy is not very different from the usual life insurance policies. The only difference is in the processing speed. The policies are issued within a short period and the underwriting process is much faster. In other words, this is not a distinct policy.

You can purchase a regular life insurance policy within the shortest time possible as long as you are a qualified applicant. For the normal underwriting process, a paramedic has to visit your home to collect vital signs, urine, and blood for testing and later submit a written statement about their findings. The approval process is normally delayed by such procedures, and that is why accelerated underwriting was introduced to eliminate these steps.

It is important to point out that this policy is not similar to the guaranteed issue life insurance that is characterized by limited death benefits and higher premiums. An individual’s health is not a major consideration when it comes to the guaranteed issue life insurance. This is just the usual life insurance policy with an accelerated underwriting process.

However, some experts explain that accelerate underwriting life insurance should not be confused with the simplified issue life insurance. For a simplified issue life insurance, one has to pay more in premiums but does not require a physical examination.

How Much Insurance can you buy with Accelerated Underwriting?

The maximum death benefit for accelerated underwriting is $1 million while the minimum death benefit is currently at $50,000. However, age is a major factor when it comes to determining the maximum policy amount for accelerated underwriting. For instance, applicants that are aged between 18 and 45 are eligible for Protective Life policies of between $100,000 and $1 million. On the other hand, those aged between 46 and 60 are only entitled to policies of between $100,000 and $500,000.