Bestow Life is the marriage of technology with the delivery of life insurance. For some, this new model may finally bring efficiency to the process of buying life insurance.
With Bestow Life, if you are young and healthy, there is an excellent chance to instantly purchase a term life insurance policy right from your phone or PC. There is no agent required and, if you qualify, you can secure coverage in less than 15 minutes with no medical examination. Heck, you can even pay for the life insurance coverage with a credit card and download your policy on the spot!
For years, life insurance companies have tried to work around the painfully inconvenient and costly process of risk selection when screening applicants for life insurance. In recent years, several insurance providers have come into the “no exam” or “instant issue” life insurance space with high hopes of changing the dynamic of buying life insurance. However, few have been able to deliver over the long-term. The latest entry into the life insurance marketing 2.0 model is Bestow Life Insurance Company, “Hello, Bestow.”
Quick Reference Links
- Who is Bestow Life?
- How Does the Process Work?
- What Happens if I am Not Approved?
- Bestow Term Life Insurance Rates and Options
- Why Use Bestow?
- Advantages and Disadvantages
- Final Analysis
Who is Bestow Life?
Bestow Life, is an online life insurance agency founded in 2017, to revolutionize the life insurance buying process. According to the 2019 Life Insurance Barometer Study, conducted by Life Happens Foundation and LIMRA, the percentage of life insurance ownership in America has dropped from 63% in 2011 to 57% in 2019. So many American families are uninsured or dramatically underinsured, and part of the problem is the process of applying for coverage. It is just too time-consuming and often frustrating.
Anyone that has ever applied for life insurance knows that it can be painful “jumping through the hoops” of the underwriting process. The standard procedure includes a lengthy application with medical and financial questions as well as an insurance exam that includes blood and urine. And, if you have any kind of medical impairment or condition, most life underwriters will want to review actual medical reports from your physician. The process can easily take 4-8 weeks from application to final policy approval.
Bestow Life Insurance Company has set out to use technology to eliminate the most challenging problem for the life insurance industry; how do you take a process that has been manually worked for centuries and simplify it? How do you remove skilled underwriting experts that reviewing detailed personal and specific medical information and automate and even improve it?
How Does the Bestow Life No Exam Process Work?
The number one goal of Bestow Life is to make the process of buying a term life insurance policy simple and more efficient. The concept is straightforward. By using existing data from other reliable sources, Bestow can quickly evaluate an individual’s insurable risk without the involvement of doctors, needles, and piles of paperwork. If you qualify, you can get a policy within a few minutes.
STEP 1: GET A QUOTE
Get an instant Bestow Life insurance quote now. They will ask a few simple questions and provide an immediate estimate. You can expect this price to be slightly higher than other “traditional” fully underwritten policies as you are paying a bit more for ease and efficiency! However, the rates are competitive, given the convenience. The quote at this point is an estimate only and may not be the ultimate price after review of your information. See Bestow Life 10 and 20-year level term price comparisons below.
STEP 2: PROVIDE BASIC INFORMATION, HEALTH, and LIFESTYLE
If you like the price estimate and want to apply for a policy, you get started by confirming and providing your general contact information, including your address, email, and phone. Next, you need to answer seven (7) basic health questions. If you answer “yes” to any item, the Bestow Life underwriting platform will ask for additional details. That doesn’t mean you will be rejected for coverage if you answer “yes.” Just be honest with your answers.
The application is complete when you provide your occupation, income, driving history, foreign travel, and other lifestyle details.
STEP 3: AUTHORIZE BESTOW TO REVIEW YOUR DATA
After completing the very brief online application, you must permit Bestow Life and North American Company for Life and Health to retrieve your data for review. A signed HIPPA Authorization, as well as your Social Security Number, is required. Finally, you must declare that you are the insured and are not applying for coverage for someone else.
Following are some of the data sources Bestow Life will access when underwriting your application:
- Medical Information Bureau: Bestow will have access to the results of your medical exams from other previous insurance applications.
- Prescription Drug Check: If you actively take medications for a condition, this information will be available to Bestow underwriting.
- Motor Vehicle Reports: Excessive tickets or accidents can impact rates. Additionally, DUI’s or reckless driving would likely result in a decline.
- Medical Records Database: If you have a chronic illness or other more serious medical conditions, Bestow underwriters will uncover this information here.
Bestow then takes information from your online application and instantly accesses available online data about you, crunches the data, and provides an immediate decision on your acceptance and provides the final price. Everyone who qualifies can get covered right away by paying for the policy via credit card. You can even download and save or print a copy of your contract.
STEP 4: ACCEPT THE COVERAGE by Paying the Premium and Download Your Policy
It’s pretty straightforward; everyone’s online application is either approved or declined within minutes, and Bestow’s underwriting decision is displayed while you’re on the site. If approved, there is only one more screen where you will have the option on the amount and term length of your policy. You will be able to adjust coverage within acceptable Bestow Life policy limits, add up to 4 beneficiaries, and then pay by credit card.
Once you hit the “sign and pay” button to accept coverage, the policy is “bound,” and you will have the option to download the policy documents.
What Happens if I am not approved?
IMPORTANT NOTE: Bestow Life is not the best life insurance solution for everyone. The instant non-medical approval risk assessment technology was designed specifically for the young and healthy person who doesn’t have time for an exam or needs a life insurance policy fast. It is not for ANYONE that has even a moderate health concern or takes multiple medications. Other life companies offer more favorable policies if you have a medical history.
Some Common Reasons Why You May Not Qualify
If you are denied instant coverage with Bestow Life, that doesn’t mean you are uninsurable with every life insurance provider. There are many different reasons why you may not be accepted for life insurance with Bestow.
- Depression, anxiety or the use of certain prescription medications for these conditions,
- No US Citizen without a Green Card,
- Felony Conviction,
- DUI, DWI or reckless driving
- Participation in Hazardous Sports or Hobbies like piloting, scuba diving, motor cross racing, etc.
- Traveling to any foreign country considered dangerous,
- A diagnosis with a significant disease like cancer or heart disease,
- a Body Mass Index that exceeds 40,
- Treatment or medication for any ongoing severe chronic medical impairment
Working with an independent agent that has access to many providers and understands the details of your specific circumstances will give you the best chance of getting a competitively priced policy. You can reach us directly at (877) 583-3955 for a personal confidential interview. Within a few minutes, we should be able to direct you to your best options.
Bestow Term Life Insurance Policies
From the outset, Bestow’s ultimate goal was to make the life insurance buying process easier so that more people could protect their families. As a result, they are strictly a term life insurance company. The company does not offer any permanent life insurance products like whole life or universal life policies.
Term life is “protection only” coverage and builds no cash value. It is the cheapest form of life insurance but only pays a benefit at death. With Bestow’s term life coverage, the rate is guaranteed for the initial “level term period” only, and the coverage is non-renewable. As you near the end of the term period, you will need to reassess the reason for the coverage. You may have to reapply with Bestow or and look to extend your term plan with another carrier or consider another type of coverage.
Bestow currently offers 3 level term life plans: a two -year level term, a ten-year level term, and a twenty-year level term. With each plan, Bestow limits the ages and amounts of insurance as follows. Coverage is non-renewable after the level term period.
2-Year Level Term
The two-year level term plan is available for individuals from ages 21-55. The amount of coverage available can range between $50,000 and $500,000. Coverage is available to residents in every state except for New York. At the end of 2 years, coverage in non-renewable meaning the policy ends without any option to continue even at a higher rate.
The two-year level term policy is a unique offering. It is great for people with a very short-term need for protection. This primary use for these short-term policies is business protection for a start-up company or for key man insurance coverage. Another great fit is when the coverage is needed for a brief transitionary period such as between employment, etc.
10-Year Level Term
The ten-year plan offers a longer guaranteed rate and is, therefore, more practical than the 2-year term policy. The 10-year term policy is available for ages 21-55. The insurance amount can range from $50,000 to $1,000,000. Coverage is available for residents of all states except New York. This option is ideal for families and even businesses that have specific needs that can be covered within a 10-year time frame.
20-Year Level Term
You can apply for a 20-year plan if you are between the ages of 21-45 unless you are a male tobacco user. For male tobacco users, the maximum age you can apply for a 20-year term is 43. Coverage can be purchased in any amount between $50,000 and $1,000,000. Coverage is available for residents of all states except New York.
The 20-year level term policy with Bestow is the most popular option for young families. Locking-up a rate for twenty years is a great way to get the kind of protection you need for the long-term. This allows you to get the maximum length of coverage to protect your most viable earning years allowing you to save for retirement and reduce the need for coverage over the long-term.
Underwritten by North American Company for Life and Health
Bestow Life is NOT an insurance company. They are an insurance agency that writes term life insurance online. All policy offerings are ultimately issued by North American Company for Life and Health Insurance®, an insurance carrier rated A+ (Superior) by A.M. Best, the second-highest rating.
North American Company, A Sammons Financial Company, One Sammons Plaza, Sioux Falls, SD 57193
A.M. Best is a third-party independent reporting and rating company that rates an insurance company on the company’s financial strength, operating performance, and ability to meet its ongoing obligations to policyholders. Limitations or restrictions may apply.
Why Use Bestow Life Insurance Company
- You are young and healthy and don’t want to do an exam.
- You need coverage fast. For example, you are closing on a loan and need life insurance as apart of an assignment.
- Policies are available nationwide, except in New York.
- If you qualify, you can get covered in minutes.
- On a relative basis, the cost of this coverage is still really inexpensive,
- Depending upon your age, coverage is available up to $500,000 and maybe up to $1,000,000.
Bestow Advantages and Disadvantages
- Simple Process-Bestow has one of the most accessible online application platforms. It takes less than 10 minutes to go through the entire process.
- No Exam– There will never be any nurses or needles. With many life insurance providers offering no medical exam policies, they reserve the right to order an exam IF they determine one is needed. With Bestow, you will get a decision without an insurance exam, guaranteed!
- Efficiency-The goal for Bestow is to get more people covered for life insurance. Therefore, everything they do revolves around making this process better. Offering term life insurance only is part of the solution to make this entire process more efficient.
- Price-If you are buying no-exam term life insurance, you already realize that the prices are a bit higher than traditionally underwritten level term plans. However, with Bestow, the difference is negligible. That’s why so many people taking advantage of the value Bestow is providing.
- Fast-From the start of your application to the decision, the process takes less than 10 minutes. You can then pay for your policy with a credit card and download your policy. Compare that with filling out forms, conducting interviews, completing medical exams, and waiting 3-4 weeks for approval.
- Quality-All Bestow Life policies are issued by North American Company, founded in 1886 and rated A+ by A.M. Best Independent Rating Service.
- Website Access– Bestow Life provides an online account where you can log in and see your policy details, request changes, or ask questions.
- Medical Conditions– Bestow Life is truly NOT AN OPTION if you have a complicated health history. Even if you have moderate health conditions, there is a chance Bestow Life will decline you for coverage. Bestow’s automated underwriting platform, while innovative, is not equipped to make decisions on these more complicated cases. If you are in this group, you need to work with one of our independent insurance agents, (877) 583-3955.
- Term Policies Only-Bestow Life Insurance only sells term life insurance. Therefore, they do not have comprehensive long-term life insurance planning. While term insurance is an excellent solution to many people’s life insurance needs, there are situations where permanent insurance is required.
- Fewer Term Options-In addition to offering term ONLY, Bestow has only three products, period. They won’t sell you a 20-year term policy if you’re older than 45, and the company won’t cover you at all if you’re 55 or older. Bestow’s reduced insurance amounts and level term strategy allows the company to be streamlined and efficient but does create limitations to comprehensive planning.
- Policies are NOT Renewable– This is a potentially big problem for all policyholders. Non-renewable means that the coverage STOPS at the end of the level term period. Currently, 95% of all traditional term life insurance policies are renewable to age 90 or age 95. “Renewable” means that coverage can be maintained beyond the level term period, at a higher rate, if the policy owner continues to pay premiums. With Bestow’s term plans, at the end of the level term period, that’s it! The policy is done. So, if you are uninsurable or cannot secure other coverage for whatever reason, you permanently lose your coverage. With the renewability feature, you have the option to keep the policy and pay a higher premium. With Bestow Life, your policy is over at the end of the level term period. Be careful.
- No Professional Agent-In most cases, working with a professional life insurance agent is preferred. Bestow Life’s platform provides “no-frills” inexpensive death protection without much else. Nonetheless, we recommend discussing your life insurance needs with a trained professional.
Final Analysis: Bestow Life Insurance
Bestow Life Insurance Agency is on a mission to change the way life insurance approved, issued, and delivered. It is clear, the trend for life insurance ownership is down, and one of the biggest reasons is the complicated and arduous requirements to get a policy.
Bestow is primarily focused on providing term life insurance to the younger and healthier segment of the uninsured and underinsured population. They offer a no-exam approach that uses existing data technologies to provide fast answers to essential questions allowing then to make an instant underwriting decision. The idea makes sense, especially for the young and healthy. After all, if you have little or no life insurance, getting your family covered is critical.
However, Bestow Life is NOT a one-stop solution to ANYONE wanting to buy no-exam term life insurance. Their automated screening process is comprehensive and will limit coverage to the most healthy and best risks given their proprietary technology. In other words, if there is something out there on the web concerning your medical history or lifestyle, Bestow’s system will find it! While we don’t have the exact parameters of their algorithm, it is safe to say that many of us with mild health impairments may not qualify for the straightforward, efficient approach to buying term life insurance without an exam. For those of you that will fly through their system, it is a great way to protect your family quickly and at a reasonable price!