What is Instant Life Insurance?

Instant Life Insurance is a type of life insurance issued instantly after getting the quotes. Earlier it took weeks or even months to issue life insurance policies. In recent times insurance companies have launched instant approval life insurance plans. This type of insurance can be purchased online without medical documentation. Instant online life insurance offers policyholders a range of benefits including:

• Instant issuance,
• No or minimum medical documentation required,
• Convenience for policyholders,
• Hassle-free purchase process,
• Quick coverage,
• No or minimum waiting period,
• Tax benefits, etc.

Best Instant Approval Life Insurance Policies in 2024

How Does Instant Online Life Insurance Work?

Let’s understand how an instant life insurance policy works with a simple premium illustration.

Problem - Mr. Ramesh living a healthy lifestyle with no critical illness wants life insurance that offers quick issuance with minimal medical underwritings.

Solution- He visited PolicyX.com and contacted one of our agents who suggested buying instant life insurance that can fulfill his requirements. So he bought the Quick Protect by HDFC Life.

Let’s understand how Quick Protect by HDFC Life works for him with a premium illustration table.

In the case of Mr Ramesh’s demise during the policy tenure, his family would get death benefits of Rs 1.3 crore.

Advantages of Instant Term Life Insurance

There are various advantages to buying an instant life insurance policy. Let’s understand these benefits in detail:

1. No or minimum medical documentation

   To buy instant life insurance there are no or minimum medical documents required by the insurer to issue the policy. In most cases, they ask basic questions related to your health.

2. Hassle-free purchase

   The purchase process of instant life insurance is hassle-free. You can buy it either from PolicyX.com or the official website of the insurer.

3. Quick coverage

   Instant life insurance policy offers quick coverage as they are issued instantly after paying the premiums mentioned in the quotes.

4. Minimum waiting period

   Instant online life insurance policies have minimum waiting period. It varies from insurer to insurer and plan to plan.

5. Simple application process

   The application process for instant-term life insurance is very simple. The document requirements of insurers are very minimal.

Disadvantages of Instant Online Life Insurance

As everything has pros and cons, so does instant life insurance. There are various disadvantages of instant life insurance.

1. Expensive premiums

   The premiums of instant life insurance are higher compared to a normal life insurance policy by 20-30% due to a lack of intensive underwriting.

2. Higher chances of claim rejection

   The claim rejection chances are higher when you buy an instant life insurance plan as the insurance company does not have your complete information. In case you miss providing any important information at the time of buying your insurer may reject your claim.

3. Non-convertible policy

   Generally, instant life insurance plans are non-convertible. It means you cannot convert this policy into a regular life insurance plan.

4. Higher policy rejection chances

   The chances of the insurance company rejecting your policy application are higher when compared to a regular life insurance policy as there are minimum requirements. If these requirements are not fulfilled your application may be rejected.

5. Age limitation

   Generally, there are more limitations when buying instant term life insurance as there is minimal underwriting. It is mostly issued to people with low age and no critical illnesses.

Who Should Buy Instant Life Insurance?

The following people can consider buying instant life insurance:

Conclusion

You should buy instant life insurance if you are younger (in your 20s or 30s) with no critical illnesses and living a healthy life. We have provided you with a list of the best instant life insurance policies that you can consider buying.

If you are still confused about which instant life insurance is right for you then you can contact us at PolicyX.com. One of our insurance representatives will contact you shortly and help you choose a plan that best fits your requirements.