The future of life insurance is now. There are changes occurring all around us due to technology and many companies are looking to disrupt the way business is done. The life insurance marketplace is no different.
Welcome to accelerated underwriting life insurance, the wave of the future.
What Is Accelerated Underwriting Life Insurance?
Accelerated underwriting is the life insurance industry’s attempt at getting more people insured with less hassle than the older, more traditional route of having to take part in an invasive medical exam.
It typically involves a telephone interview and a background check, with some companies still requiring physical measurements and vitals, but no blood draw.
The background check usually consists of a look at the medical information bureau, prescription database, and motor vehicle records.
Why would I choose accelerated Underwriting?
Accelerated underwriting is perfect for anyone that wants life insurance with the least amount of hassle.
It is important to note that currently, you will still find that fully underwritten policies will offer more competitive term life insurance quotes.
However, often the difference in pricing between accelerated underwriting vs fully underwritten life insurance is minimal and worth the few extra dollars for the ease of getting the coverage.
Am I eligible for accelerated underwriting?
Eligibility for accelerated underwriting typically comes down to a few primary criteria. Most policies require that the applicant be between 18 and 50, although some companies offer accelerated underwriting up to age 65.
Another requirement is that you are relatively healthy. Obviously, the idea of “health” is somewhat relative but the healthier you are the better chance you will qualify for accelerated underwriting.
Also, having a clean background check really helps put the underwriter’s mind at ease. If some red flags pop up on your background check it may hamper your chance of being approved and you will need to go the more traditional route of a fully underwritten application.
How do I get an accelerated underwriting life insurance policy?
The process consists of talking with an agent familiar with accelerated underwriting companies. After you work with your agent to fill out an application, it is then submitted to the carrier of choice.
Some carriers conduct a further telephone interview, while other companies simply run a quick background check.
It all comes down to the company you apply with and what that company’s criteria are going to be.
Best Accelerated Underwriting Companies in 2019
There is no single “best” accelerated underwriting company. Each fits a unique need in the life insurance marketplace.
In composing our list, we looked at the current crop of companies that are offering less invasive ways to get people insured.
Each of the companies on our list is a top rated carrier. They all carry at least an A.M. Best rating of A.
Top 7 Best Companies and Policies Offering Accelerated Underwriting
The following accelerated underwriting companies are listed in alphabetical order.
- American National
- Banner Life
- Foresters Financial
- North American Company
- Principal Financial Group
- Sagicor Life
- SBLI of Massachusetts
American National’s Xpress Plus accelerated underwriting policy offers up to a million dollars of life insurance for clients 50 and below and $500,000 of coverage for ages 51-60. Another benefit besides the high face amounts offered is that American National does not require a tele-app interview.
APPcelerate offered through Legal and General’s flagship company, Banner life insurance, is another innovative policy for ages 20-50 and face amounts ranging from $100,000 to $500,000. The client fills out an application with the agent and then an agent with the company’s call center conducts a phone interview with the client. If the client passes the interview, no further action is required. If the client does not pass the interview and medical exam may be ordered.
The Advantage Plus policy from Foresters is unique in that it offers the benefits of whole life insurance without the need for an exam. Foresters Financial offers dividend-paying whole life insurance coverage up to $400,000 is available for ages 16-55.
The whole life policy is available in 6 different rate classes:
- Preferred Plus Non-Tobacco
- Preferred Non-Tobacco
- Non-Tobacco Plus
- Tobacco Plus
North American Company
LifeVue is a simplified issue policy from North American Company. It is available for up to $500,000 in coverage for ages 18-50. It offers competitive term life insurance rates, even against more traditional companies that require an exam.
Principal Financial Group
The Principal Financial Group is truly an innovator, offering accelerated underwriting on a large number of policies, including term life, guaranteed universal life, indexed universal life and variable universal life. It even offers $2,000,000 of coverage without a paramed exam for survivorship universal life. The one catch is you must qualify for the top rate class in order to be eligible.
Sagicor Life coined the phrase “Accelerwriting” to describe the company’s accelerated underwriting. This provider is a great option for a myriad of clients from all different health and lifestyle backgrounds. Sagicor offers accelerwriting for term life, universal life, and whole life. Face amounts vary depending on the product.
- Term $50,000-$500,000;
- UL $25,000-$400,000;
- WL $25,000-$250,000
SBLI of Massachusetts
SBLI offers accelerated underwriting consisting of a simple application process with a telephone interview. Face amounts range from $100,000 to $500,000 for ages 18 – 60. The policy is available in 48 states, excluding New York and Montana. SBLI offers competitive pricing and is a great option if you are in pretty good shape.
The Future of Life Insurance
As technology continues to disrupt the status quo, more and more traditional ways of doing things will be supplanted with innovation.
However, there is still a need for an experienced life insurance professional who can help point you towards the company that will offer you the best shot at getting the right policy for your needs, goals, and objectives.