Your Top Questions About Bestow and Life Insurance, Answered
Have questions about Bestow and life insurance? You’re not alone!
Life insurance is confusing. We get it. With so many options out there, it’s hard to figure out where to even start. Chances are, if you’re reading this you have questions, too.
Fortunately, you don’t have to do this alone. Every day I answer phone calls, chat messages, and emails from customers who want to buy life insurance coverage but don’t know the best way to go about it. There’s no shame in that. There’s a reason why insurance agents and brokers need to have a license to sell policies to customers — it’s a complicated topic!
And sometimes we meet people who just want to learn more about Bestow and what we offer. That’s fine, too.
Other times, we hear this:
“I don’t know what questions to ask.”
If that’s you, you’ve also come to the right place! Here you’ll find the top questions people just like you are asking.
What Kind of Life Insurance Do I Need?
That’s up to you! There are lots of life insurance products out there. What’s your overall goal? Identifying what you need ahead of time can help you narrow down your options for life insurance. For example, if you want something simple to understand and affordable, a term life insurance policy might be a great fit for you.
What Kind of Life Insurance Does Bestow Offer?
Bestow offers term life insurance. A term life policy is as easy as 1-2-3.
- Choose a term (2, 10, or 20 years),
- Select a coverage amount ($50,000-$1 Million), and
- Pay a set monthly premium throughout the duration of that term.
Policies offered by Bestow have level premiums, which means your monthly payments will never change as long as your policy is in force, no matter what your term length is. So lock in your rate today!
Why Choose Term Life Over Whole Life Insurance?
I can’t tell you which type of life insurance is best for you. I’ll tell you some differences and let you decide.
Term life insurance is easy to understand, affordable, and more commonly purchased than whole life. It provides coverage for a specific length of time (this is called a “term”) at a level premium (meaning the price doesn’t change) throughout the life of the policy. This type of life insurance is great for people that need either a small or large amount of coverage at a low cost.
Whole life insurance covers you for life as long as you pay the premium. Some policies include the potential to build up cash value, which is tax deferred. You can borrow from it, or you can surrender your policy for the cash value. For these reasons, a whole life policy can be more difficult to understand and significantly more expensive than a term life policy.
Do I Need Life Insurance If I Already Have It Through My Job?
If your employer offers group life insurance, that’s a great start! Especially if it’s at no-cost or a very low cost to you for basic coverage, opt in.
However, there are two important things to note about group life coverage:
- Basic group life plans might not offer enough coverage— sometimes it’s a flat amount like $25,000 or an amount equal to one year’s worth of salary. Adding supplemental coverage can be more expensive than buying your own individual policy and may require medical tests and evidence of insurability.
- You’ll very likely lose your coverage if you leave your job, leaving your loved ones at risk. Sometimes you have the option to buy the policy, but again, it may be more expensive than buying elsewhere.
With your own individual policy, you can purchase as much coverage as you need and lock in a low monthly rate for decades. Plus, premiums tend to increase as you get older, so buying it in your 20s and 30s will likely get you the lowest rate (if approved).
How Much Coverage Do I Need?
That all depends on your financial situation. But here are some things to consider when determining how much life insurance you need:
- Do you have a family?
- Do you have debt (mortgage, student loans, other loans)?
- Do you have other expenses you’d like to cover (tuition, childcare, etc.)?
- Do you have final expenses that will need to be paid (funeral, medical care, etc.)?
There’s no simple answer, but our guide can help you figure out how much life insurance coverage you might need.
Any coverage is better than nothing, so if you’re on a budget, try an affordability-first approach. Choose an amount you can afford on a monthly basis. Bestow allows you to choose a coverage amount based on monthly premium amounts. You can always add or reduce your coverage in the future.
What is a Death Benefit?
Death benefit is an industry word for the amount paid to a beneficiary tax-free upon the death of the insured person. This is the amount of coverage that you select when you buy a term life insurance policy.
If your beneficiary were to file a claim, and you selected $1 Million in coverage when you bought your policy, then they would receive $1 Million tax-free (once the claim is approved).
Who Should Be My Beneficiary?
This is a personal question. In life insurance lingo, anyone with an insurable interest can be your life insurance beneficiary. That means anyone who would suffer a financial, emotional, or any other type of loss because of the death of the person insured.
How Do I Know I’m a Good Fit for a Bestow Offered by Policy?
If you’re in generally good health and between the ages of 21 and 55, a policy offered by Bestow might be a great fit for you. Our application provides an underwriting decision instantly, so you don’t have to wait weeks whether to find out whether you’re approved for coverage.
Is a Medical Exam Required to Get a Policy Offered by Bestow?
Not with Bestow. A medical exam helps an insurance company double check how healthy you are. Instead, Bestows underwriting engine checks your health with big data and technology, which saves you time and money. We’ve partnered with third-party agencies to gather information in order to assess your risk and eligibility for a life insurance policy — instead of paperwork, medical exams, and lab tests. Here’s a detailed explanation of how Bestow works.
How Is Bestow Different Than Other Insurance Companies?
Bestow is an online insurance agency, not an insurance company. We’ve completely re-engineered the buying experience for term life insurance to be super simple and more affordable. Apply and get an instant decision in less than 10 minutes. Unlike other online life insurance providers, we underwrite the policies we offer in-house with our own technology — accelerated underwriting. Our data and technology allows us to help our customers with just about any request.
What is Accelerated Underwriting?
Think of this accelerated, algorithmic underwriting as our secret sauce. We use that big data and our proprietary technology mentioned above to determine your risk and eligibility instantly.
What Determines How Much I’ll Pay For Life Insurance?
Your level of risk is what determines your premium and monthly rate. Risk is the likelihood that an insured event (in this case, death) should occur during the policy term. The higher your risk, the more you will likely pay.
Life insurance risk factors include basic information about you (like your age, height, and weight) in addition to things like your medical history and lifestyle. But each insurance company has their own underwriting process — that’s the process by which an insurance company determines whether it can accept an application for life insurance, and if so, on what basis so that the proper premium is charged. Here’s more information on life insurance risk and underwriting.
What Is the 30-Day Money Back Guarantee?
It’s a 30-day free look period to examine your life insurance policy to see if it meets your needs. If you cancel your policy within the first 30 days, you’ll receive a refund.
How Can I Trust you? You’re a Startup.
Our policies are issued and backed by A+ rated (superior) industry giant North American Company for Life and Health Insurance®. They’ve been around for over 100 years. So, if anything were to happen to Bestow, your policy is well taken care of. But don’t worry, we aren’t going anywhere.
How Can I Trust My Beneficiary Will Get Paid?
North American Company for Life and Health Insurance® is the insurance carrier for Bestow policies and pays the claim. Bestow will be there to walk whoever is making the claim through the process and answer any questions.
What Happens If I Die During My Term?
Should you pass away, your beneficiary will contact Bestow to get started on the claims process. A Customer Care Advisor will walk them through the process and answer any questions while North American Company for Life and Health Insurance® processes and reviews the claim.
In most cases, life insurance policies will have a two-year contestable period where the insurance company may investigate the cause of death and review the information provided on the application (only if there’s a reason). If information is found to be false or inaccurate, the insurance company can deny the payment of the life insurance benefit.
What Happens If I Don’t Die?
Cheers to good health!
Term life insurance policies do not build cash value like a whole life policy does, so if you outlive your policy term, you won’t get anything back. It’s similar to auto and home/renters insurance policies in that way. However, the benefit of term life insurance is that it’s much more affordable.
Term life policies do not renew; at the end of your term, you can re-apply for a new policy.
What If I Still Have Questions?
No worries. We got your back. You can contact our Customer Care Team in three different ways:
- Give us a call at 1-833-300-0603
- Ask us a question via chat, that little box floating about the page.
- Send us an email at firstname.lastname@example.org, and a Customer Care Advisor will get back to you. Please do not include personal information, like your Social Security Number.
Or if you prefer a DIY approach, you can check out our Bestow FAQ.
There’s no such thing as a silly question, so don’t hesitate to reach out. I’m happy to help.
Bestow policies are provided by North American Company for Life and Health Insurance®, an insurance carrier rated A+ (Superior) by A.M. Best. Limitations or restrictions may apply.