You buy life insurance to protect your family financially, so it’s natural to want life insurance that starts immediately. After all, the sooner you have protection in place, the sooner you’ll rest easy that they’re covered if the unthinkable happens.
In reality, it can take a little while from the time you buy your policy until the time it kicks in. Before you shop, it’s important to understand how waiting periods in life insurance work and how they can affect your coverage.
At Fidelity Life, we offer some life insurance plans with no waiting period to give you peace of mind faster. As part of our mission to make life insurance simpler, here’s what you’ll want to know about the life insurance waiting period.
What is a waiting period for insurance?
The waiting period is the period of time between when you’ve applied for a life insurance policy and the time when your policy goes into effect. During the waiting period, insurers will review the information submitted with your application to evaluate your medical history and background, which will determine the amount you pay for your premiums.
If you’re approved for coverage, your waiting period ends and your policy officially begins when you pay your first premium. The waiting period for your life insurance policy to be in effect is different from the waiting period for your life insurance death benefit payout.
What’s the waiting period for a life insurance death benefit?
With most policies, you’re eligible to receive the full death benefit as soon as you buy the policy. That means if you buy life insurance and die within days or weeks (hopefully not), your family would receive the full coverage amount as long as your premiums are up to date and you meet the policy requirements.
With some policies, though, there’s a waiting period to receive the life insurance death benefit after buying the policy. Guaranteed life insurance, which is designed for people with health issues, often falls into this category. Wondering about guaranteed life insurance options with no waiting period? Talk to your insurance company about the plans available to you and any waiting periods to consider.
What happens if you pass away during the waiting period?
It depends. If you pass away while you’re waiting for your life insurance policy to go into effect, your family won’t receive a payout since you haven’t officially bought coverage yet. That’s one more reason to buy life insurance as soon as possible if you need it. If you’re young and healthy, you’ll also get better rates on your life insurance, since the prices go up as you get older.
Have a policy with a waiting period for the death benefit, like guaranteed issue life insurance? If you die during the death benefit waiting period, your loved ones won’t receive the full payout but will get back any premiums you’ve paid (plus interest, in some cases). Talk to your life insurance company about the specifics for your policy.
How to avoid the waiting period
Want to count on your coverage right away? There are a few options to avoid the waiting period.
Look for Companies That Offer Accelerated Underwriting
Accelerated underwriting can speed up the approval process for life insurance significantly. With Fidelity Life, we offer many life insurance policies where you can get coverage the same day.
For example, our RAPIDecision® Life plans provide coverage from day 1. Your initial coverage is typically a blend of all-cause coverage, which pays out for any covered cause of death in your policy, and accidental death coverage, which covers you if you die because of an accident. You then have six months to complete a medical exam after your coverage starts. Depending on your exam’s results, your policy can move to 100% all-cause coverage or you can keep your original blended coverage.
Buy No Exam Life Insurance
Another option is to buy term life insurance that doesn’t require a medical exam at all, so there’s no waiting period. RAPIDecision® Guaranteed Issue has no health qualifications and your coverage begins immediately upon approval. Simplified Issue life insurance requires you to answer a series of health questions and provide your medical history, but does not require an exam. Since these policies don’t require medical exams, the approval process is typically quick and easy. Guaranteed issue can also be a good option if you have health concerns that make it tough to qualify for other plans.
Explore Accidental Death Benefit
If you work in a high-risk job, such as construction or as an airline pilot, you may want to consider buying an accidental death benefit policy, which will cover you if you die in an accidental death. An accidental death benefit policy doesn’t require a medical exam or waiting period, so you can get coverage immediately. This policy is another affordable option, especially for people with pre-existing conditions, that offers peace of mind if anything were to happen to you and your family needed financial support.
Still have questions about waiting periods in life insurance?
Purchasing a new life insurance policy can seem daunting, but it’s more daunting to live without the financial protection that you and your family need.
Whether you want interim coverage while you’re waiting for your medical exam or you’d rather skip the medical exam altogether, Fidelity Life can help you find the best policy for you and your family. Give us a call or start your quote online today.
At Fidelity Life, our goal is to make life insurance simple, affordable, and understandable for everyday families. This content is intended for educational purposes only. Each post is carefully fact-checked, reviewed, and updated regularly to ensure the information is as relevant as possible.
