Are you desperately looking for life insurance? Getting life insurance is one of the best investments a person can buy, but is it possible to get life insurance right away?
And how long does it take to get life insurance money after filing a claim? Don’t worry – we’re here to help you find answers.
Read our guide to learn how long it takes to get a life insurance policy, how different factors can determine when you’re approved, and when life insurance companies pay out claims.
Continue reading to learn how long it takes to get life insurance.
How long does it take to get life insurance?
Life insurance typically takes least 24 hours to get approved. However, some life insurance policies can take days and even months to process.
Each life insurance policy varies. Most life insurance companies want to know about your health history and lifestyle habits to determine your level of risk.
These factors, and others, can determine how long it takes for a life insurance policy to approve your policy.
Which factors affect your life insurance policy?
Life insurance companies look at several factors to determine the cost of your life insurance policy. But they also look at various elements to see if you qualify for life insurance coverage.
Here are the main factors that affect your life insurance policy:
- Health. A life insurance company will ask you to take a medical exam (physical) to determine your overall health.
- Family health history. You may be required to answer health questions about your family’s health history to determine your risk level.
- Death benefits (policy amount). This is the amount you’ll receive if you pass away while under life insurance coverage.
- Life insurance riders. You can expand life insurance coverage with additional perks, but you’ll pay more for life insurance.
- Occupation. The life insurance company wants to know if you work at a job that increases your risk of a fatal accident.
- Term. This is the number of years your life insurance policy is active, and it only applies to term life insurance policies.
- Income. Life insurance companies correlate income to the risk of filing a claim.
- Hobbies. Your life insurance company wants to know if you engage in hobbies that may be considered dangerous.
- Smoking. Your life insurance rates are more expensive if you’re a smoker.
- Travel. If you’re an international traveler, expect your rates to increase.
Life insurance companies insist that you take a medical exam, but you can answer questions about other factors while they wait. Once they’ve looked through each factor, they’ll send you life insurance rates for your policy.
Your insurance rates are determined by statistics that the life insurance company has combed through. The underwriter examines your factors and sums them up to a monthly payment.
How long does it take to get no medical exam life insurance?
It can take less than 24 hours to a few days to get no medical exam life insurance. Some life insurance companies allow you to skip health questions and other factors through no medical exam coverage.
No medical exam life insurance skips questions about your health and provides coverage faster. However, no medical exam life insurance is more expensive.
Several life insurance types that don’t require a medical exam exist, and they include:
- No medical exam life insurance
- Guaranteed issue whole life insurance
- Simplified issue life insurance
No medical exam and simplified issue life insurance are term life insurance policies. They have lower policy limits than standard term life policies, but you can get coverage fast.
Simplified issue life insurance does have a few medical and health questions, but it’s not as detailed as most life insurance policies.
Guaranteed issue whole life insurance (or guaranteed issue life insurance) has the benefits for whole life insurance with little to no health questions. However, death benefits are typically lower than a regular whole life insurance policy.
When does a life insurance policy typically become effective?
Your life insurance policy becomes effective once the life insurance company approves your request. This usually occurs after the underwriting process is complete.
Underwriting means the life insurance company determines your risk and calculates your life insurance rates.
Set up payment arrangements and begin your life insurance coverage. Let your life insurance company know if any significant life changes happen during your life insurance policy.
How long does it take for life insurance to pay out claims?
It takes between 30 and 60 days to receive a payout from a life insurance company. Make sure you follow up with all requirements to move the claim process faster.
But do life insurance companies pay out claims faster based on policy type? It’s not likely, but some life insurance policies are layered with benefits which may require more information.
How much is the average life insurance payout?
Life insurance payouts are between $150,000 and $185,000 on average. But your life insurance payout will depend on the policyholder’s death benefits.
How long does it take to get life insurance money from term life insurance?
Term life insurance payouts could take up to 60 days for beneficiaries to receive a claim check. Most term life insurance policies are straightforward, and all you need to do is prove that you’re the beneficiary.
How long does it take to get a life insurance payout from whole life insurance?
You could receive a whole life insurance payout in 60 days. But whole life insurance has different parts you should know about.
Ask the life insurance company about the accumulated cash value attached to the policy. Life insurance companies can take accumulated cash values if the original policyholder doesn’t have a rider that protects it from being absorbed.
How long does life insurance take to pay out burial claims?
Burial life insurance policies can pay out claims in 60 days or less. Include your beneficiary information, death certificate, and other essential information.
Most burial claims are designed to pay funeral homes for burial costs. Claim payouts are much lower than death benefits from a term and permanent life insurance policy.
Why do life insurance claims get denied?
Life insurance claims are denied for various reasons. Here’s a list of reasons why a life insurance check isn’t issued:
- The policyholder stopped making payments
- False information on the life insurance application
- You’re not a beneficiary
- A suicide occurred within the two years of getting life insurance coverage
- The policyholder died while committing a crime
Presenting false information on your life insurance application could get your life insurance payout denied when your beneficiaries file a claim.
For example, if you were diagnosed with a chronic illness and didn’t inform the life insurance company, the life insurance payout to beneficiaries could be delayed or denied.
And most life insurance companies have something called a contestability period. This two-year period allows the life insurance company to look at your application closely and prevent a policyholder from claiming a payout under specific circumstances.
How Long It Takes to Get Life Insurance: The Bottom Line
Life insurance companies can approve a policy in 24 hours if you have favorable factors. In other words, a life insurance company could issue a policy quicker if you’re healthy and have low-risk hobbies.
Beneficiaries can receive a life insurance claim check within 60 days. However, it’s not uncommon for you to receive a life insurance claim in 30 days.
Consider getting a life insurance policy now that you know how long it takes to get a life insurance check.