How do I receive an instant life insurance quote? Follow these tips.
There are two approaches you can use:
- Go through an insurer, directly. Direct life insurance allows you to purchase cover completely online or over the phone without having to go through a lengthy underwriting process.
- Use finder's quote engine. By entering a few simple details, you can get quotes for multiple brands in one spot.
Why go direct?
If you know the type and amount of life insurance you're after you can avoid working with an insurance adviser by getting cover directly from the insurer. Direct life insurance allows you to purchase cover completely online or over the phone without having to go through a lengthy underwriting process. After contacting the insurer, you will be provided with a quote and can apply immediately with the help of the insurer's staff and cover will commence as soon as you're accepted.
Receive life insurance quotes, instantly
Who should consider an instant policy?
With the growth of online shopping, instant life insurance (insurance bought directly from the insurer rather than through a financial adviser) is becoming an increasingly popular way of purchasing cover.
Buying direct is particularly suited to people who;
- Know what type of life insurance they need
- Prefer to get their own cover, rather than paying an adviser
- Are short on time and looking for immediate cover
- Don’t wish to submit to medical questioning or exams
- Are basically healthy with few or no pre-existing conditions.
What are the pros and cons?
The pros of instant life insurance include;
- Ease of application – you can apply for life insurance directly online or over the phone, without having to visit an adviser
- Quick acceptance – you only have to answer a few basic questions and acceptance is virtually guaranteed
- Low cost – direct life insurance policies are often cheaper than normal policies
- Immediate death cover – many direct life insurers provide immediate death cover, without the need for underwriting
- Bundled cover - some direct insurers let you add benefits such as TPD, Trauma and Income Protection to your policy.
The cons of instant life insurance include;
- More exclusions – direct policies often contain more exclusions to overcome the lack of underwriting
- Lower benefit amounts – while premiums can be lower, the maximum sum insured can also be less with direct policies
- Basic cover – cover is not tailored to your individual needs and circumstances, so you may be underinsured
- More difficult claims process – you must deal with the insurer direct and this can be a complex process at a time when you are unwell.
How does instant cover compare to the other methods of purchasing life insurance?
While instant life insurance has the advantage of being fast, straightforward and easy to obtain, life insurance purchased through an adviser tends to be;
- More comprehensive and more closely tailored to your needs (i.e. with medical underwriting for pre-existing conditions)
- Easier to claim on because the underwriting has been done upfront and because your adviser can assist you in the claims process.
What types of details are required to receive instant life insurance quotes?
When speaking with the direct insurers staff or filling out the application form online, you'll be asked a series of questions that will allow the insurer to determine if you're eligible for cover. Typical details required by a direct insurer include:
- Your name
- Your telephone number
- Your gender
- Whether you smoke
- Your date of birth
- Your occupation
- Type of insurance you require
- Amount of cover you require
- If you have any significant pre-existing health conditions
Our life insurance engine is straightforward and only requires basic information such as your birthdate and occupation.
1. Basic personal details (no contact details)
2. Select the amount of cover
3. Compare policy features and prices
Am I still able to take out instant life insurance online if I have health problems?
- In the past. Direct life insurance was very black and white in the past around who was accepted for cover. If you didn't tick all of a policy's set criteria you could be immediately refused cover. In the past if the applicant had any health conditions at all, they would be excluded all together.
Direct insurers have realised in recent years that this not a very realistic approach in assessing clients in that it shut the door to people that were actually of decent health or where the nature of their occupation did not actually present any real substandard risk.
Tailored coverage for health conditions
Direct insurers will now find out more details around their actual role to see if it really contains much risk i.e. how long has it been since your pre-existing medical conditino affected you?
Many policies will allow you to tailor your cover by giving you an option to answer a more detailed questionaire.
Can I get instant cover that can be customised?
Previously the answer to this question would have been ‘no’, but with the growing popularity of instant life insurance, many direct insurers are beginning to align their products more closely with those purchased based on advice. This flexibility includes adding options such as a choice of higher benefit amounts and including more comprehensive medical screening so the cover can be tailored more closely to the applicant’s needs.
What will happen if the insurer decides the applicant presents significant risk?
If the applicant does present some risk either through their occupation or pre-existing conditions, the insurer will generally take one of or a combination of the following steps:
- Refuse the cover. Reject the application and recommend alternatives.
- Refer the cover. Contact the applicant to find out more about their situation and how it may change into the future.
- Apply a loading. The insurer may decide to apply a premium loading to the cover to account for the additional risk carried by the insurer.
- Exclude certain conditions. Exclude certain medical conditions or injury that occurs at work. The insurer may also apply an accident-only clause for a defined period.
Steps to getting cover in an instant online
- Review the options available to you and consult with a financial planner if required
- Once you've decided on a policy, submit your details either online or over the phone
- Get your quote
- Review your quote
- Go through the application process
- Cover starts once the process is complete
How does an insurer assess applications and provide cover so quickly?
Direct insurers have sped up the underwriting process by introducing new automated software to assess applications electronically with specified underwriting rules. This technology allows the person to find out immediately if their application has been accepted or if the insurer will require additional information to be sent to the insurer for assessment.