What is the waiting period for life insurance?

What is the waiting period for life insurance? Unlike auto insurance, most life insurance policies don’t go into effect immediately.

The best life insurance companies want to assess how much of a risk you are to insure, so your insurer will thoroughly assess your health before calculating a rate and assigning you a policy.

This time gap between when you apply for a life insurance policy and when the policy is approved and goes into effect is known as the life insurance waiting period. Read on to learn more about the waiting period in life insurance, how to avoid it, and more.

Does life insurance go into effect immediately?

Most life insurance policies will not go into effect immediately, as insurance companies will review your information and assess your risk before underwriting coverage. While there are ways to get around the waiting period, it is usually more expensive as you are skipping out on a paramedical exam for life insurance.

Read our guide on what to expect in a paramedical exam for more information. We go more in-depth about why there are waiting periods in life insurance and ways to avoid waiting periods.

What is the waiting period for life insurance?

While most people want their life insurance policy to start right away for immediate financial protection, there are many reasons life insurance policies take a while to approve.

The most common is that insurance companies need to look at your health and medical background to assess how much to charge you for a policy. Your insurer may request a medical history background and a medical exam to be completed before it issues a policy. The waiting period is often longer than a week or two because it can take time to make a medical appointment and fill out paperwork.

Once everything is assessed, insurance companies will approve or deny you and give you a policy rate. Generally, if you are younger and in good health, you will have much cheaper rates than a senior citizen in poor health. Insurance companies may even choose to deny life insurance to very high-risk individuals.

What happens if you die during the life insurance waiting period?

You are not covered by life insurance during the waiting period, as the company is reviewing your information to decide whether or not to insure you. Because you haven’t yet officially signed up for a life insurance policy or paid any premiums, you aren’t covered by life insurance yet.

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How to Avoid the Waiting Period for Life Insurance

If you want life insurance coverage immediately, a few different options are available for life insurance with no waiting period.

Accelerated Underwriting Companies

Some companies offer accelerated life insurance underwriting. For instance, you may be able to get life insurance on the same day. Although, in most cases, it is a limited coverage that goes into effect until you can complete a medical exam and the company more thoroughly reviews your information.

For example, a limited coverage policy may provide just accidental death coverage, which pays a death benefit to your beneficiates if you die in an accident. Once you complete all the necessary exams and paperwork, the policy will move to a full coverage policy, or you can keep the limited coverage policy.

No-Exam Life Insurance Policies

Some insurance companies will offer policies that don’t require you to complete and pass a medical exam to qualify for coverage. This is also known as guaranteed life insurance. It is more expensive as no medical exam is required, but you’re more likely to be approved.

However, this means it is good life insurance coverage for those with more serious health issues that might get rejected by insurance companies.

Accidental Death Benefits

Accidental death life insurance covers you if you die an accidental death. Like no-exam life insurance, these policies don’t require medical exams so that you can get an accidental death benefit policy right away.

However, the catch is that only accidental deaths are covered. If you die of natural causes, a death benefit won’t be paid out to your beneficiaries. However, this coverage is good for those who can’t qualify for regular life insurance due to health conditions or those who work high-risk jobs.

Case Studies: Waiting Period for Life Insurance

Case Study 1: John’s Quick Coverage

John needed immediate life insurance coverage due to his upcoming overseas trip. Instead of waiting for the typical waiting period, he opted for an accelerated underwriting policy. This allowed him to secure limited coverage on the same day, providing him with accidental death benefits until he could complete a medical exam and receive full coverage.

Case Study 2: Sarah’s No-Exam Option

Sarah had been denied life insurance in the past due to her underlying health issues. She decided to explore the option of no-exam life insurance policies. By choosing a guaranteed life insurance policy that didn’t require a medical exam, she was able to obtain coverage without a waiting period. Although the rates were higher, it provided her with the protection she needed.

Case Study 3: Mark’s High-Risk Job

Mark worked in a high-risk job and was concerned about his lack of life insurance coverage. Since he couldn’t qualify for regular life insurance due to his occupation, he opted for an accidental death benefit policy. While this type of policy only covered accidental deaths, it provided Mark with immediate coverage without a waiting period.

What is the waiting period for life insurance? The Bottom Line

In most cases, life insurance waiting periods are unavoidable. This is because insurance companies need time to review your health information and conduct a medical exam.

However, there are some options for those who want life insurance right away, such as accelerated underwriting life insurance, no-exam life insurance, and accidental death benefit life insurance.

If you want to start shopping around and see your life insurance options, you can use our free life insurance quote comparison tool. It will sort through rates from companies in your area to find the best deal and coverage for you.

Your life insurance quotes are always free.

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