Although instant-issue life insurance policies were typically much higher than traditional (fully underwritten), in today’s marketplace, the rates are only slightly higher than traditional term life insurance.
Because of technology that has been embraced by most insurance carriers, the underwriting process has become quicker and less costly because of the national databases that store the medical information and prescription history of many U.S. citizens.
However, please don’t misunderstand – this information doesn’t come from your physician records but rather from insurance companies who are members of these information providers. Moreover, when you fill out a life insurance application, there is a conspicuous area where you agree to let your insurance company share the medical information on the application.
Here are some actual rates for instant life insurance vs. traditional term life insurance:
