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I got a $500,000 life insurance policy online in minutes, and it only costs me $22.50 a month

Lauren Ward   

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Hinterhaus Productions/Getty Images

Earlier this year, my husband took out a life insurance policy for himself, but the process was long and cumbersome, involving scanning and faxing paperwork plus an in-home medical exam.

To avoid going through the same hassle, I did some research and discovered Bestow, an online term life insurance company that advertises affordable life insurance in about five minutes.

I'd been dragging my feet on getting life insurance, but as a financial contributor to my household, I needed to take the plunge. Plus, I realized the younger and healthier I am when applying for coverage, the better offer I'd receive.

Here's what happened at each step of the process.

What Bestow's application process looks like

After you sign up for an account with Bestow, you can complete the application process, which really does take just a few minutes.

It's broken into three sections: personal info, health info, and lifestyle info.

Bestow screen 1

Bestow

First, I answered basic questions about my height, weight, and medical history. Since I don't have any pre-existing conditions, this part was pretty straightforward. If you've experienced recent medical issues, your results will likely vary.

Apply for life insurance from Bestow today and pay as little as $5 a month to protect those who depend on your income »

Here's an example of some of the conditions Bestow asks about:

Bestow 2

Bestow

After I completed the personal and health info sections, I moved onto lifestyle questions. These were simple as well, asking where I was born and if I had any travel plans outside of North America in the next 12 months.

If you're an adventurer, you might get hung up in this section. For example, Bestow also asks about your plans to:

  • Pilot an airplane
  • Deep-sea scuba dive
  • Mountain climb outdoors without specific gear

Presumably, mortality rates go up in these scenarios, which can jeopardize your approval for a life insurance policy.

The lifestyle section also asks for income information and any previous conviction history.

The income section asks how you're paid (i.e. annually, monthly, or hourly) and then asks how much you earn in that amount of time. The application rounds out with inputting your driver's license information.

What happened when I submitted my application

When I finished filling out my Bestow application, I was surprised that the underwriting process actually took just a few minutes.

Bestow uses algorithmic underwriting, which assesses your application information along with external data to provide you with your personalized life insurance policy offer.

Most traditional life insurance companies use a person to underwrite policies, which slows down the process.

Bestow's algorithm accesses a variety of resources to verify your application, including:

  • Identity verification
  • Prescription history databases
  • Motor vehicle reports
  • Financial data (don't worry - your credit score isn't impacted)

After a few minutes of waiting, I received a life insurance policy offer from Bestow.

bestow offer

Bestow

This initial offer is exactly what I was looking for: a $500,000 policy for 20 years. I was also happy with the monthly payment amount, so I accepted the policy and entered my payment information to be billed monthly.

If you want a different coverage amount or term length, you can make adjustments before accepting. In addition to longer 10- and 20-year plans, Bestow also offers short-term plans for just two years, ideal for anyone going through a life transition like a new job search.

Managing my policy and beneficiaries is easy and convenient

Immediately after confirming my policy, Bestow led me to a personalized dashboard where I can access all of my policy documents in one place. I can also download and print them out to have on hand in case something happens to me.

Bestow 4

Bestow

Bestow also makes it simple to add a beneficiary to the life insurance policy. I added all of my husband's contact information to make it easier for him to navigate if I'm not around.

After dragging my feet on getting life insurance for the last several years, it's now one less thing nagging at the back of my mind. Obviously, I hope my policy never has to come into use, but I'm happy to know my husband and I are both covered to protect each other and our kids in the event something happens to either one of us.

Bestow offers affordable term life insurance online. Get a policy in minutes today »

Disclosure: This post is brought to you by the Personal Finance Insider team. We occasionally highlight financial products and services that can help you make smarter decisions with your money. We do not give investment advice or encourage you to adopt a certain investment strategy. What you decide to do with your money is up to you. If you take action based on one of our recommendations, we get a small share of the revenue from our commerce partners. This does not influence whether we feature a financial product or service. We operate independently from our advertising sales team.

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