I’m excited to review a revolutionary way for individuals to purchase cheap regular term life insurance that does not involve the obstacles or gimmicks that we have come to expect. It’s quite simple really, mostly just a leap forward in the insurance industry’s level of technology deployment to deliver what consumers demand. This blog post is a broad overview; I anticipate more details to follow.
The product is ordinary term life insurance; the type recommended by most financial advisers.
The unique difference is that the entire application process from pricing to underwriting has been entirely replaced with a telephone enrollment. No more talking with agents, medical screening, physical exam, lab tests or signing paper applications. In short, buying life insurance will be as easy as buying auto or homeowners insurance.
The insurance company is North American Life Insurance, an A+ rated privately owned issuer with a longstanding reputation in term life insurance.
The product is available only through telephone interview, not through an agent or online.
There are no physical exams, no lab tests and none of the gimmicks we hear about on late night TV pitches by celebrity spokespersons.
“Life insurance with no medical exam” has become synonymous with sales campaigns for limited benefit insurance. This is not that type. The marketing communication could take a while to sink in with consumers.
This is simply term life insurance in amounts and durations to suit most working-class people, made easier to buy.
There is no implication that this is the rock bottom lowest price insurance option, but the rates are so low to begin with that most people will not find a price objections. Typically this type of individually owned life insurance offers price and portability features over employer-sponsored group policies.
The entire pricing and application process takes about 20 minute by telephone. A trained call center representative asks a series of questions and is then able to quote a rate and take payment information to bind coverage immediately.
Rates are based on age, health and lifestyle. Coverage for an obese 62-year-old with a history of DUI is obviously more expensive than a 25-year-old in good health.
Amounts of coverage are $50,000 to $500,000.
Some people will not qualify for coverage. Those with more severe medical issues, past normal retirement age, living outside the US or in a risk category not considered by the insurer will not be offered coverage.
Residents of AL, CA, CT, ME, MT, NY and PA are not eligible at this time because this and all insurance products are subject to state regulation and approval.
Kickoff of this insurance product will be within the next week. I expect to be involved in the media promotion but I am not an agent and can not sell the insurance.
Telephone appointments with the call center can be scheduled now. Just send a message with your contact information (just name, email, telephone and time preference for a call) and a call center representative will call. Meanwhile, I am available to help answer other questions. (I am a licensed life, accident and health insurance producer in all states and DC but typically act as an adviser or referrer or in some other collaborative capacity. I do not act as agent or producer on this insurance).