What is the waiting period for life insurance?
Quick Facts
Insurance companies need time to issue medical exams and review medical information, which is why there is a waiting period for life insurance
There are options to avoid a waiting period, such as with no-exam insurance policies or accidental death benefits
Some applicants may be rejected for underlying health issues, which is when it can be helpful to get guaranteed insurance with no waiting period
What is the waiting period for life insurance? Unlike auto insurance, most life insurance policies don’t go into effect immediately.
The best life insurance companies want to assess how much of a risk you are to insure, so your insurer will thoroughly assess your health before calculating a rate and assigning you a policy.
This time gap between when you apply for a life insurance policy and when the policy is approved and goes into effect is known as the life insurance waiting period. Read on to learn more about the waiting period in life insurance, how to avoid it, and more.
Does life insurance go into effect immediately?
Most life insurance policies will not go into effect immediately, as insurance companies will review your information and assess your risk before underwriting coverage. While there are ways to get around the waiting period, it is usually more expensive as you are skipping out on a paramedical exam for life insurance.
Read our guide on what to expect in a paramedical exam for more information. We go more in-depth about why there are waiting periods in life insurance and ways to avoid waiting periods.
What is the waiting period for life insurance?
While most people want their life insurance policy to start right away for immediate financial protection, there are many reasons life insurance policies take a while to approve.
The most common is that insurance companies need to look at your health and medical background to assess how much to charge you for a policy. Your insurer may request a medical history background and a medical exam to be completed before it issues a policy. The waiting period is often longer than a week or two because it can take time to make a medical appointment and fill out paperwork.
Once everything is assessed, insurance companies will approve or deny you and give you a policy rate. Generally, if you are younger and in good health, you will have much cheaper rates than a senior citizen in poor health. Insurance companies may even choose to deny life insurance to very high-risk individuals.
What happens if you die during the life insurance waiting period?
You are not covered by life insurance during the waiting period, as the company is reviewing your information to decide whether or not to insure you. Because you haven’t yet officially signed up for a life insurance policy or paid any premiums, you aren’t covered by life insurance yet.
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How to Avoid the Waiting Period for Life Insurance
If you want life insurance coverage immediately, a few different options are available for life insurance with no waiting period.
Accelerated Underwriting Companies
Some companies offer accelerated life insurance underwriting. For instance, you may be able to get life insurance on the same day. Although, in most cases, it is a limited coverage that goes into effect until you can complete a medical exam and the company more thoroughly reviews your information.
For example, a limited coverage policy may provide just accidental death coverage, which pays a death benefit to your beneficiates if you die in an accident. Once you complete all the necessary exams and paperwork, the policy will move to a full coverage policy, or you can keep the limited coverage policy.
No-Exam Life Insurance Policies
Some insurance companies will offer policies that don’t require you to complete and pass a medical exam to qualify for coverage. This is also known as guaranteed life insurance. It is more expensive as no medical exam is required, but you’re more likely to be approved.
However, this means it is good life insurance coverage for those with more serious health issues that might get rejected by insurance companies.
Accidental Death Benefits
Accidental death life insurance covers you if you die an accidental death. Like no-exam life insurance, these policies don’t require medical exams so that you can get an accidental death benefit policy right away.
However, the catch is that only accidental deaths are covered. If you die of natural causes, a death benefit won’t be paid out to your beneficiaries. However, this coverage is good for those who can’t qualify for regular life insurance due to health conditions or those who work high-risk jobs.
What is the waiting period for life insurance? The Bottom Line
In most cases, life insurance waiting periods are unavoidable. This is because insurance companies need time to review your health information and conduct a medical exam.
However, there are some options for those who want life insurance right away, such as accelerated underwriting life insurance, no-exam life insurance, and accidental death benefit life insurance.
If you want to start shopping around and see your life insurance options, you can use our free life insurance quote comparison tool. It will sort through rates from companies in your area to find the best deal and coverage for you.
Frequently Asked Questions
What is a waiting period for insurance?
A waiting period for life insurance is the time between when you apply for coverage and when the insurance company issues a policy. Most insurance companies require you to complete a medical exam before issuing a policy, and approval can take a few weeks.
Why do companies have a waiting period for life insurance?
Most companies require a medical exam before approving a life insurance policy. They also need to review your health history to assess the risk of insuring you. The waiting period allows companies time to do the necessary risk and health assessments for potential clients.
How long until life insurance coverage starts?
It depends on whether you choose a life insurance policy that goes into effect immediately or has a waiting period. Your coverage could start as early as the next day or take as long as a month.
Can you get life insurance without a life insurance waiting period?
Yes, it is possible to get a life insurance policy without a waiting period. There are usually good options for those that have been denied life insurance policies due to underlying health issues or dangerous occupations. However, these policies are usually more limited in coverage, and rates are higher if you opt out of a medical exam.
Is term life insurance effective immediately?
It depends on whether the company requires a medical exam. If no medical exam is required, you can usually get a policy that goes into effect within a day. However, if you need a medical exam, it can take up to a few weeks for the policy to be issued and for your benefits to go into effect.
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Editorial Guidelines: We are a free online resource for anyone interested in learning more about life insurance. Our goal is to be an objective, third-party resource for everything life insurance-related. We update our site regularly, and all content is reviewed by life insurance experts.
Rachael Brennan has been working in the insurance industry since 2006 when she began working as a licensed insurance representative for 21st Century Insurance, during which time she earned her Property and Casualty license in all 50 states.
After several years she expanded her insurance expertise, earning her license in Health and AD&D insurance as well. She has worked for small health in…
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Written by
Rachael Brennan
Licensed Insurance Agent
Benjamin Carr worked as a licensed insurance agent at State Farm and Tennant Special Risk. He sold various lines of coverage and informed his clients about their life, health, property/casualty insurance needs.
Assessing risks and helping people find the best coverage to suit their needs is a passion of his. He appreciates that insurance was designed to protect people, particularly during times…
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Reviewed by
Benjamin Carr
Former State Farm Insurance Agent
