What’s Basic Life Insurance Coverage & How It Works In Dec 2023!

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.

This is where simplified issue or basic life insurance comes into play.

basic life insurance

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.

What Is Basic Life Insurance?

Basic life insurance 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.

How Much Does Basic Life Insurance Cost? 

The average cost of basic life insurance is around $53 per month and the average term length is usually 20 years. You can use our quote tool below (no personal info needed) for more specific rates.

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The Different Types Of Basic Life Insurance

While a life policy should be simple, there are two primary types of life policies that you will usually have to choose from:

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

An instant 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.

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.

what is basic life insurance

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

What Are The Best Basic Term Life Insurance Companies?

The best companies for basic term life insurance are Bestow, Haven, Fabric, and Ethos because they all offer a vast range of coverage at affordable prices.

However, Bestow, does edge out the competition when it comes to the overall purchasing process for life insurance.

They also have a ton of term options and go up to $1.5 million in life insurance with no exam required.

Bestow Best For Same Day Coverage

bestow logo

Bestow is backed by A+ rated North American, and is our #1 Pick. Their competitive rates and fast approval process earned it the 1st spot.  

Best For Traditional Term Life

haven life logo large

Haven Life is backed by A+ rated Mass Mutual, and is our #4 recommendation.

Best For Young Families

fabric life new logo

Fabric is backed by A+ Rated Vantis Life, and is our third recommendation.

Best For Term & Whole Life

ethos logo

Ethos is backed by A+ Rated Legal & General America, and is our fourth pick.


Term Life insurance by state.

With a Life Insurance policy you can take care of your family the right way.

Should anything happen to you, you'll want to leave your loved ones a financial nest egg for their wellbeing. Click on your state to find out more.

AlabamaALAlaskaAKArizonaAZArkansasARCaliforniaCAColoradoCOConnecticutDelawareFloridaFLGeorgiaGAIdahoIDIllinoisILIndianaINIowaIAKansasKSKentuckyKYLouisianaLAMaineMEMarylandMassachusettsMichiganMIMinnesotaMNMississippiMSMissouriMOMontanaMTNebraskaNENevadaNVNew HampshireNew JerseyNew MexicoNMNew YorkNYNorth CarolinaNCNorth DakotaNDOhioOHOklahomaOKOregonORPennsylvaniaPARhode IslandSouth CarolinaSCSouth DakotaSDTennesseeTNTexasTXUtahUTVermontVirginiaVAWAWest VirginiaWVWisconsinWIWyomingWYVermontVTNew HampshireNHMassachusettsMAConnecticutCTNew JerseyNJMarylandMDHawaiiHIRhode IslandRIDelawareDE

Taking Action

Now that you know what basic life insurance is and how it should work, you should probably get some coverage in place.  There's no need to put it off any longer, you can click here or on any of the above buttons to get immediate quotes and instant coverage.