Setting up a traditional life insurance policy can be a huge hassle.
Oftentimes, you have to deal with forms, as well as a medical exam which can be intrusive and unpleasant.
And then you could wait for weeks before hearing if your application has been approved or not.
Bestow works on a completely different application altogether.
By using an online platform and proprietary algorithm, Bestow can receive your request and give you a decision within minutes.
This Texas-based company aims to offer customers a simple, pain-free process to apply for life insurance coverage without the need for a medical exam.
Table of Contents:
- Life Insurance Products
- Policy Restrictions
- Drawbacks of Bestow
- Bestow Life Insurance Features
- Is Bestow for you?
Bestow Life Insurance Products Available
Bestow only offers term life insurance products. These policies have a set term length, during which your premiums and coverage remain fixed.
Once the term expires, you have to reapply for insurance again.
The two main plans Bestow offers is a unique 2-year transitional coverage plan and the more traditional 10-year or 20-year term plan.
The 2-year coverage plan targets customers who are at a place in their lives where they aren’t quite ready for life insurance.
For instance, it’s great for new business owners, people going through job transitions or students.
It offers the benefits of a term life insurance policy with none of the commitment. The plan has coverage of between $50,000 and $500,000, with a meager starting premium.
The 10-year and 20-year coverage plans are more traditional and should be familiar to anyone who’s looking for a term life insurance policy.
The coverage ranges between $50,000 and $1 million with reasonable premiums, depending on your health and lifestyle.
The design of these products fits customers who want a life insurance policy that they know will protect their loved ones without any additional frills.
Bestow Life Insurance Policy Restrictions
As with many life insurance policies, Bestow policies come with certain restrictions. The policies are offered to all Americans, except those living in New York.
It can only be taken out by customers aged between 22 and 54.5.
If you want a 20-year term policy, you have to be 45 years or younger, so that the policy expires when you turn, at maximum, 65.
There are also restrictions on customers with existing medical conditions.
These conditions include heart disease or cancer, as well as people who participate in dangerous hobbies. So, be sure to read the fine print before you apply.
Drawbacks of Bestow Life Insurance Policies
Bestow offers an innovating service and a great alternative way to apply for life insurance.
However, while their products may be suitable for many people, they do come with some drawbacks.
The main drawback of Bestow life insurance is that it only offers relatively short terms.
For instance, if you take a policy out when you’re 30, the maximum term length of 20 years will mean that your policy will expire when you’re 50.
After 50, your health will likely have deteriorated. It may be difficult to qualify for a new life insurance policy, and people often realize that premiums and cover are less than ideal.
Keep in mind, Bestow insurance policies are designed to expire when you reach 65.
Make sure to take this into account when considering adequate coverage for you and your family.
Secondly, the maximum cover of $1 million may be quite low for people who have very young children or larger families, as the bills can rack up over the years.
If you’re looking to help protect the financial future of your children and loved ones, take the time to calculate if $1 million is enough to do so.
If yes, then Bestow is an excellent option. If not, you may have to look at alternative insurance providers.
Since Bestow only offers term life insurance, there are few ways in which you can personalize the policy to meet your specific needs.
Riders are additional terms that extend the scope of the plan, such as accelerated death benefits, long-term disability riders, and others.
Bestow doesn’t offer any riders, however, making their policies more limited and less flexible than most.
Features of Bestow Life Insurance Policies
The best features of Bestow Life Insurance are their:
- Hassle-free application process
- Payment flexibility
- Financial Strength
Hassle-free Application Process
The main appeal of using Bestow is the hassle-free application process.
They’re able to provide you with a decision within minutes of receiving your application due to their accelerated underwriting process.
This process works by asking you basic questions about your health, lifestyle, and potential risks and then using data vendors to both verify and expand upon this data.
These vendors provide Bestow with information about your current prescriptions, location, age, and other information that can be used to verify the information you provided them.
Once Bestow has received and verified your information, the algorithm will place you in one of several health categories.
These categories will then decide both your maximum coverage and premiums.
The Bestow website is designed to be as easy to navigate as possible.
The user-friendly interface helps you receive a quote quickly and easily without you having to provide a contact email address.
This access means that you can get information on your premiums and other important information without committing to their service.
It is a fantastic option if you’re still evaluating your choices.
Payment Flexibility
When you sign up with Bestow, you’ll find that they have an automated payment system that will help you make your payments on time.
With this system, you don’t have to worry about missing a payment because you forgot to make it, as the money will be taken from your account.
In the event of a missed payment, Bestow will still ensure that you retain your cover for up to 60 days.
The missed payment will then be paid along with the next month’s premium.
This flexibility means that you can miss a payment without losing your cover.
However, any missed payments will be deducted from your death benefit.
Financial Strength
Financial strength is a good indicator of how likely it is that an insurance company can meet its financial obligations.
Many rating services, such as Moody’s, AM Best, and Standard and Poor’s, evaluate a company’s financial position to determine their financial strength.
Bestow’s is backed by North American Company for Life and Health Insurance®, which has been in business for over 100 years.
They have been rated as A+ (Superior) by AM Best, which means that they are in a great position to meet their financial obligations.
If you purchase a life insurance policy with Bestow, you can be relatively certain that your claim will be paid out.
Is Bestow For You?
If you’re looking for a no-frills term life insurance policy that doesn’t require a medical exam, Bestow’s is an excellent option.
They offer reasonable coverage at competitive rates and have a streamlined and convenient application process.
Their 2-year transitional life insurance is an appealing option if you’re in a transitory space in your life when you want the benefits of life insurance without the commitment of 20 years’ worth of premiums.
Overall, they’re an insurance provider that’s worth checking out to see if it meets your requirements.
If it does, the chances are you won’t be disappointed with their service.
Disclosure: This post may contain affiliate links. The opinions and ideas expressed in the article are those of the author(s) and are not promoted or endorsed by Bestow or North American. You should always seek professional advice before making a financial decision.
