What is Basic Life Insurance Coverage In 2019?

Oct 15, 2019 (0) comment

basic life insurance

There are several different life insurance products, but you probably just want a simple life insurance policy.

With all of the options and features, finding plain life coverage doesn’t have to be a complicated process.

In this post today, I will go over what basic life insurance is, how it works, the different types, and the best company to get coverage through.

basic life insurance

​In This Article



​What Is Basic Life Insurance?

Basic life coverage can be seen as the purest form of a life policy, and that is a traditional term life insurance policy.

What makes it a basic policy is that it is simple in the fact that you pay for a specific amount of coverage for a certain amount of time.

These policies will also have a guaranteed level premium, and your coverage amounts will not decrease due to your health.

Two Types Of Plain Life Insurance?

While a life policy should be simple, there are two primary types of life policies:

Fully Underwritten

A fully underwritten life plan is going to give you the most affordable rate.

However, it will require an exam and a bit of waiting before you get approved.

The underwriting process for this type of insurance policy goes like this:

  • ​Get a quote
  • ​Submit Application
  • ​Complete Exam
  • ​Medical Records Request
  • ​Telephone Interview
  • ​Underwriting Decision
  • ​Accept Policy
  • ​Make Payment

​This process can take anywhere from 3 weeks to 2 months, depending on how fast you get everything completed.

No Exam

A no exam basic policy is going to give you still an affordable rate, but also requires no exam and speeds the approval process up immensely.

The underwriting process for this type of insurance policy goes like this:

  • ​Get a quote
  • ​Submit Application
  • ​Instant Underwriting Decision
  • ​Accept Policy
  • ​Make Payment

​Quick Comparison

Below is a quick comparison of both products:

Fully Underwritten


  • ​Up To 3 Weeks For Approval
  • ​Medical Records Requested
  • ​Medical Exam Required
  • ​Can Have Lower Rates

​No Exam


  • ​Instant ​or Next Day Approval
  • ​No Medical Records Requested
  • ​No Medical Exam Required
  • ​A Bit More expensive Between the two

This process can take anywhere from 5 to 10 minutes, depending on how fast you can complete the application.

As you see, the No Exam option is so much faster than the fully underwritten option and is the one I most recommend.

Life Rates (For A Basic Policy)

Below we show you some very affordable life rates:

Basic Life Rates For Men


Age


$250,000


$500,000


20 Years Old


$15.00


$25.00


25 Years Old


$15.00


$25.00


30 Years Old


$16.00


$26.00


35 Years Old


$18.00


$33.00


40 Years Old


$24.00


$43.00


44 Years Old


$32.00


$60.00

*Rates based on a 20 year term policy for a non-tobacco male with preferred health

Basic Life Rates For Women


Age


$250,000


$500,000


20 Years Old


$11.00


$18.00


25 Years Old


$11.00


$18.00


30 Years Old


$13.00


$20.00


35 Years Old


$15.00


$24.00


40 Years Old


$20.00


$34.00


44 Years Old


$26.00


$47.00

*Rates based on a 20 year term policy for a non-tobacco male with preferred health

Basic Term Life Insurance vs Permanent Life

Outside of basic life plans, there is Permanent Life that functions entirely different from simple term life insurance.

The most known form of permanent insurance is whole life insurance and below we will discuss the primary differences between each product.

​Whole Life


  • ​Builds Cash Value
  • ​Last Your Entire Life
  • ​Up to 30 times more expensive 
  • ​more complicated product

​Basic Life


  • ​Much More Affordable
  • ​Last For A Specific Term Length
  • ​Doesn't Build Cash Value
  • ​easy to understand

The Best Company For A Basic Term Policy

​While there are some excellent ​​no exam term life insurance companies to choose from, we haven't found any better than Bestow life.

Check out our quick overview of them below:

bestow life insurance logo

About Bestow Life Insurance

Bestow ​is backed by North American Company for Life and Health Insurance.

North American has been around for over 100 years and was founded in 1886, and as of today North American holds an A+ (Superior) rating with A. M. Best.

Bestow believes that great life insurance should be affordable, convenient, and smart.

And every bit as straightforward as buying any other gift for your family.

Product Features

  • Available for ages 21 through 55
  • Coverage amounts from $50,000 to $1,000,000
  • Not Yet available in NY
  • No physical exam life insurance
  • Tobacco & Non Tobacco Rates
  • E-Signature & Simple Application Process
  • No Waiting Period
  • Accelerated Underwriting
  • 2 Year Term Option Available

Riders & Options

No additional riders or options are available on this policy yet such as the accelerated death benefits, term life conversion option, or accidental death benefit rider.

Simply Insurance Thinks

Bestow is the most affordable simplified issue, no physical exam term life insurance product in the market. We are ​seeing clients go from application to approval within 5 minutes​.

​Bestow can cover you faster than any product on the market.

Want to learn more about them? Check out our full Bestow life insurance review.

​Taking Action

​Now that you know what basic life insurance is and how it should work, you should probably get some coverage in place.

Understanding how life insurance works can be complicated, but when you just want basic coverage, it is effortless to get quotes for and purchase.

You can click the button above to get quotes or check out the review for the company we suggested above.


Sa El is the Co-Founder & CEO of Simply Insurance. He is a Licensed Life and Health Insurance Agent with over 11 years of experience in the industry. He is an Entrepreneur, Insurance Educator and Field Underwriter. Sa is on a Journey to get 1 Million Families insured.

All posts by Mark Mathon

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