One of the obstacles to purchasing life insurance is the application process. With traditional life insurance, you sit with a life insurance agent, who asks a series of deep and often uncomfortable questions as part of an application process that seems to take forever. Then you may have to wait weeks for an approval, and hope it will come with the premium rate quoted by the agent.
But the Internet is changing the way consumers apply for life insurance.
One of the companies at the forefront of that transition is Bestow Life Insurance. It offers an all-online application process, that provides approval in minutes, without a medical exam, and with a firm, low-cost premium quote.
If you want fast life insurance, Bestow is one of the few companies that can offer it.
Bestow Life in a nutshell:
- Fast, online approvals with no medical exam
- One of the lowest cost life insurance providers in the industry
- Policies available for up to $1 million
- Terms up to 20 years
Intrigued? Let's dig deeper:
What is Bestow Life Insurance
Bestow Life Insurance is an online life insurance company that sells low-cost life insurance policies that require no medical exam. All policies offered are term life insurance, ranging from two years to 20 years. The site was launched in November 2016 and is based in Dallas, Texas.
But don't let Bestow Life's relatively young age scare you. It's actually the online platform for North American Company (they issue Bestow Life's policies) in partnership with Munich RE. These two companies are two of the largest reinsurance companies in the US.
North American Company is a privately-owned insurance company that's been in business for over 130 years. They have more than 600,000 life insurance policies and annuity contracts in force.
North American Company has the following ratings by the major insurance industry rating services:
- A.M. Best, “A+ Superior” (second highest of 15 rating categories)
- S&P Global Ratings, “A+ Strong” (fifth highest of 22 rating categories)
- Fitch Ratings, “A+” (fifth highest among 19 rating categories)
Munich RE was established in 1959, and is rated “A+ Superior” by A.M. Best.
How Bestow Life Insurance Works
Bestow Life Insurance uses big data and technology to streamline and speed up the life insurance application process.
The entire application process takes place online. You'll be asked questions about your health and your lifestyle. The company's algorithm analyzes information available from big data and technology (largely MIB, the insurance industry's medical database) and offers an answer in a matter of minutes. This is unlike the traditional life insurance application process that can take several weeks.
Best of all, Bestow Life Insurance does not require a medical exam or lab tests for policy approval.
There are no paper forms to complete. If your policy is approved, you'll be given your rate, and an opportunity to choose the amount and term of your policy. You can pay for your policy using a credit card.
Bestow in a snapshot:
- Type of life insurance offered: Term life only (no cash value policies)
- Policy terms available: 10- and 20-year terms
- Maximum policy amounts: Two-year term, up to $500,000; 10- and 20-year terms, up to $1 million
- Minimum policy amounts: $50,000
- Medical exam requirement: Not required
- Age limits to apply: For two-year and 10-year terms, 21 to 55; 20-year term, 21 to 45
- States available: 49 (all except New York)
- Premium payment frequency: Monthly
- Health exclusions: Heart disease, stroke, cancer (except basal and squamous cell skin cancer), organ transplant, diabetes before 40 (except gestational diabetes), alcohol or drug abuse, HIV, or kidney disease requiring dialysis
- Customer service: Available by phone, email, and live chat on the website
How Much Does Bestow Life Insurance Cost?
Bestow Life Insurance offers term life insurance policies to US citizens and residents, who are generally healthy (see table below for exclusions related to health). To apply, you must either be employed full-time, a homemaker, or a student.
The company offers several different types of term life insurance policies:
10-year term: Provides longer-term protection for your loved ones, as well as funds to pay off debts upon your death. Premium payments are fixed for the entire 10-year term. The 10-year term policy is available for applicants between the ages of 18 and 59. It's available in amounts ranging from $50,000 to $1.5 million.
20-year term: Works similar to the 10-year term policy, but with double the term for longer-term protection. The 20-year term policy is available for applicants between the ages of 21 and 45. It's available in amounts ranging from $50,000 to $1 million.
They also now offer 15, 25, and 30 year term policies.
The policies are not automatically renewable. You would need to reapply once the term ends if you are still eligible based on age and health.
How much life insurance should you get? Use our guide to determining how much life insurance you need to figure out the amount and the term. Generally speaking, you want enough to cover current and future financial needs but not so much that you overshoot. Overpaying is better than underpaying but who wants either?
Bestow Pros and Cons
Bestow has quite a few Pros and Cons, here they are outlined:
- Fast online approval: If you qualify, you can get coverage in minutes.
- No medical exam: Getting coverage does not require a medical exam though it is not higher priced as a result.
- Coverage up to $1,500,000 – Some of the highest coverages with terms of up to 20-years, all while still being able to get approval quickly.
- Monthly premiums: You can pay monthly, rather than in an annual lump sum.
- Only term life insurance: Bestow only offers term life insurance, no permanent life insurance available.
- A long list of exclusions: Because there is no medical exam and they do not charge you more as a result, there are health exclusions including heart disease, stroke, cancer, HIV, and more.
- Not available to 45+ and 55+: Again, because there is no medical exam, older populations may not qualify.
- Not available in New York
Like many online life insurance companies that offer fast approvals and low-cost premiums, Bestow Life Insurance is designed primarily for those who are in good or excellent health, and generally younger (under 45 or 55, depending on the policy).
It's also an excellent choice if you're looking for fast approval, with low monthly premiums (started at just $5 a month), and no medical exam.
However, Bestow Life Insurance does not make policies available for those over 45 or 55 so you'll need to look elsewhere if you exceed those age limits. It also doesn't have policies available for those with significant health conditions, though it promises to add additional policy types going forward.
Bestow Life Insurance also does not offer permanent life insurance, in the form of cash value policies, like whole life insurance. I think term life insurance is better than whole life but if you're looking for permanent coverage, or longer-term policies (up to 30 years) you'll want to check out other sources.
Lastly, remember that the policies they offer are not automatically renewable. At the end of the term, you'll need to reapply for a new policy, if you're still within the eligibility parameters. But given the super low rates Bestow Life Insurance charges for coverage, it certainly benefits you to see what you'd pay on a policy if you are within the eligibility parameters set by the company.
In summary, Bestow offers fast term life insurance coverage for healthy younger applicants without a medical exam or lab tests. It's a great option if you fit into one of their prime categories and one you should consider if you're in the market for term life insurance (and are not a resident of New York).
If you don't know if you are in that category, or you are unsure, you can get a quote and find out pretty quickly. If you qualify, it's a great option because of how affordable it is. If you don't, you'd have to look elsewhere anyway!
If you'd like more information, or you want to get a free quote, visit the
Bestow Life website.