How Long Does It Take To Get Life Insurance?

What Is a Life Insurance Waiting Period?

A life insurance waiting period is a standby period after your policy’s approval that may limit some benefits on your policy. Insurers include this period to ensure fair coverage and prevent fraud.

If you die during this period, your beneficiaries may not be able to claim the full death benefit but only the premiums paid so far, especially for graded policies. However, many graded or guaranteed-issue policies include full accidental death coverage during the waiting period, but this can vary by insurer. In other cases, the insurer may consider separate clauses for accidental, natural, or suicidal death.

The waiting period on all policies is not the same and may vary depending upon the policy type, but typically it is two years. Some insurers may also offer no waiting period policy. 

Waiting Period vs. Approval Time

Applying for a life insurance policy doesn’t mean you are immediately insured with coverage. After you apply, the insurer makes an assessment of your overall health before offering you a final quote. This review time that the insurer takes after the application is the approval time. In other words, it’s how long it takes to get the life insurance policy after you apply. Once you accept your policy quote and make the first premium payment, your policy is active.

Even after your policy is approved, you may not be able to get the full benefits of your policy due to the waiting period. Approval times and waiting periods on your life insurance policy are two different timelines. Here’s a quick look at the differences:

When a Waiting Period Applies

The waiting period on a life insurance policy may vary depending on the policy type. But, high-risk policies or minimally underwritten policies have a higher chance to include a waiting period to prevent fraud. Waiting periods are very common in the following cases:

• Guaranteed-issue life insurance policies
• Some final expense policies, or other policies designed for seniors
• Policies for people with critical health conditions
• Certain group or employer plans with graded benefits

Read: Cost of Whole Life Insurance

How Long Is the Approval Time in Life Insurance?

The time it takes to actually get a life insurance policy issued and for coverage to be active varies based on the company and the policy type. It may range from instant approval to multiple weeks. When your policy involves an underwriting process that skips the medical exam, the approval time may be quick, but in some cases the waiting period could be longer.

Platforms like Ethos allow instant underwriting with same-day coverage through an accelerated underwriting process. When you apply, you don’t have to undergo a medical exam but you will need to answer a few health-related questions. Here’s a quick look at standard approval times and waiting periods on different policy types:

Standard Approval Times & Waiting Periods by Policy Type

What Affects Approval Time?

The duration of your life insurance approval process may depend on the underwriting process, whether it includes a medical exam or not, and on your overall health profile. 

Your Health & Medical Records

Insurers typically use your health and medical records to classify you into a risk category (unless it’s a guaranteed or simplified issue policy.). The more information the insurer needs, the longer it may take. If you have pre-existing conditions like diabetes, hypertension, past surgeries, or recent heart issues, your approval process may take additional time for the insurer to review your overall health. Low-risk profiles may result in a shorter approval time. 

Policy Type and Underwriting Requirements

If your insurer includes a detailed underwriting process before issuing the policy, the approval time might be longer. Typically, no-medical-exam policies, such as simplified issue or guaranteed issue, include a much faster approval time. Instead of medical exams, a simplified issue policy relies on health questions, and guaranteed issue policies don’t require any health information. Traditional underwriting processes with medical exams are usually slower. 

Administrative Delays

A delay in the approval process could also be due to administrative reasons like slow responses to the insurers requests, missing or incomplete documents, and outdated medical records. It’s good to keep track of your application and ask for clarification if the approval takes longer than you expected. Respond quickly, provide complete documents, answer any follow-up questions asked, and provide accurate medical records. If the underwriting process includes a medical exam, try scheduling it as soon as you can.

Read: How Long is Term Life Insurance

Types of Life Insurance Waiting Periods

Life insurance policies come with different waiting periods depending on the type of policy and the insurer. Here are typical waiting periods: 

No Waiting Period

If your policy offers a no waiting period, you might get immediate coverage as soon as your policy is active. Some no-medical-exam or term life policies don’t have waiting periods. Insurers may sometimes follow the contestability period clause, meaning they may pay the full benefit in case of death in the first two policy years only after reviewing your cause of death.

Partial Waiting Period

A partial waiting period on your policy means limited benefits up to the first two years. Depending on the policy type, the insurer may offer a return of premiums paid instead of the full death benefits if you die during the waiting period.  This typically applies only to graded-benefit or guaranteed-issue policies. Fully underwritten policies generally do not have partial waiting periods.

Full Waiting Period

A full waiting period usually applies to policies with a graded death benefit, like guaranteed issue policies. Insurers may offer a payout only in case of accidental death. In these policies, natural deaths usually receive only a return of premium during the waiting period.

Read: Borrowing Against Life Insurance

Choose No-Exam or Accelerated Underwriting to Avoid Waiting Periods When Buying Life Insurance

Accelerated underwriting policies rely on health questions and medical records to analyze your health profile. Since the underwriting process is quick, the approval can be fast. You can get same-day coverage with platforms like Ethos just by answering simple health questions. You may also consider no-medical-exam policies. Though the approval is typically quick; waiting time could vary based on the policy type.

How to Avoid Delays in the Approval Process

Here are some proactive steps you may take to avoid delays in your life insurance approval process:

Respond Quickly to Insurer Requests

Be prepared with your documents when you apply for a policy. To ensure a faster approval, respond quickly to questions from the insurance company and provide accurate information and medical records. It’s good to be transparent with the insurer so that high-risk factors don't delay your application.

Choose Lower Coverage Amounts for Faster Approval

Insurers are often more stringent in approving high-coverage policies. Thus, the lower the benefits, the less comprehensive the underwriting process may be.

Read: Cash Value Life Insurance

What Happens During the Waiting Period?

During the waiting period, insurers may treat the cause of death differently. Here’s a quick look at what’s likely covered and what’s not:

• Some policies cover accidental death during the waiting period with a full payout, while others just offer a return of premium. Payouts during the waiting period depend on the policy terms.
• Natural deaths are usually not fully covered during the waiting period, especially with graded policies. In some guaranteed-issue or final-expense plans, they may be completely excluded.
• Most life insurance policies include a separate suicide exclusion (typically two years), which is different from a waiting period.