How Long Does It Take To Get Life Insurance?
Applying for and getting approved for life insurance can seem daunting, but technological advancements have made the process much faster. However, the approval process can still vary from 24 hours to a few weeks or even months, depending on several factors, including the type of policy, underwriting process, health and lifestyle profile, and the insurance company chosen.
Life Insurance Underwriting Process
Underwriting is the process by which insurance companies assess the risk of an individual to determine premium rates. Insurance underwriters are responsible for gathering information about an applicant’s medical records, credit history, driving records, and more to determine the risk they pose to the insurance company.
The underwriting process can be as quick as 24 hours or take as long as a few months, depending on the type of life insurance policy being purchased and the individual’s health and lifestyle profile.
The four primary types of underwriting are:
| Underwriting Type | Description | Approval Time |
|---|---|---|
| Guaranteed Issue | Insurance offered to any eligible applicant without regards to their health status. No medical exam or health questions required. | Usually a few minutes, but can take up to a few weeks |
| Simplified Issue | Applicants are asked brief health questions but still not required to take a medical examination. | Usually less than a week, but can take longer depending on the company |
| No Medical Exam | No medical examination is required, but the insurer requires more information about the applicant’s health, background, and financial history. | Completed in as little as 24-48 hours, or can take up to 1-4 weeks |
| Fully Underwritten | A comprehensive underwriting process that takes into account the applicant’s medical history, background checks, credit history, driving records, and more. A medical examination is required. | Can take as little as 2-3 weeks or as much as 6-8 weeks, depending on the health conditions of the applicant and the thoroughness of the underwriting process. |
The larger the policy, the more eyes are going to be taking a look at it in order to ensure all the details are correct. As a result, the underwriting process can take a bit longer than usual.
Factors Affecting Life Insurance Approval Time
Several factors can affect the time it takes to be approved for life insurance, including:
- Age
- Policy type
- Type of underwriting
- Existing health conditions
- Insurance company chosen
It is important to note that insurance agencies keep all information 100% confidential and secure their data from reliable, trustworthy, and high authority sources that are responsible for keeping this type of information up-to-date and secure.
While the life insurance application and approval process may seem lengthy, there have been significant improvements made in the last 20 years to speed up the process while still protecting the insurance company based on the individual’s risk profile. Underwriters work to ensure that applicants get the best premium possible for the coverage they need.
