Team Clark is adamant that we will never write content influenced by or paid for by an advertiser. To support our work, we do make money from some links to companies and deals on our site. Learn more about our guarantee here.
Bestow’s claim to fame is that it offers term life insurance with no medical exam — ever.
It’s among several direct-to-consumer “insuretech” startups focused on convenience and speed with its online application and purchasing process.
In this article, I’ll help you determine whether Bestow’s term life insurance product is the right fit for you.
Company Name | Bestow |
---|---|
Company Type | Term life insurance agent |
Key Features | No medical exams |
Downsides | Narrow product offering |
Best For | Younger, healthier customers |
Founded in 2017 and based in Dallas, Bestow claims it’s the only term life insurance company that can give you a decision almost instantly — without a doctor’s visit.
Although the company has plans to become a fully-licensed insurance carrier, Bestow operates as an insurance agent for now.
Bestow policies are issued by North American Company for Life and Health Insurance, which has been around since 1886 and carries an A+ rating from A.M. Best. Money expert Clark Howard says you should buy life insurance only from a company that has earned an A.M. Best rating of A+ or A++.
North American Insurance approves the underwriting rules, policy design and application questions for all Bestow customers.
Bestow’s stated mission is to expand access to term life insurance by making it simpler. Term life insurance is its only product.
Here are some of the positive aspects of Bestow:
Here are some of the negative aspects of Bestow:
Gender/Age | Policy Amount | 20-Year Term Life |
---|---|---|
Female/35 | $500,000 | $19.75/month |
$1 Million | $33.50/month | |
Male/35 | $500,000 | $26.42/month |
$1 Million | $46.83/month | |
Female/45 | $500,000 | $38.08/month |
$1 Million | $70.17/month | |
Male/45 | $500,000 | $50.17/month |
$1 Million | $94.33/month |
Bestow offers term lengths of 10 and 20 years and coverage between $100,000 and $1 million.
You can apply for a 20-year policy if you’re between 21 and 49 years old. That age range expands to 21 to 59 for 10-year policies.
Bestow asks you about your health and lifestyle and uses its predictive models to assess you as a risk. Bestow also offers customer support and advice from life insurance agents.
It’s important to remember that North American Company for Life and Health Insurance actually issues the policies sold through Bestow. North American holds an A+ rating on A.M. Best, which is a credit rating agency that specializes in the insurance industry.
A 35-year-old Florida female in excellent health can get a 20-year policy with $500,000 of coverage for $19.75 per month through Bestow. That compares favorably to Fabric ($20.28/month).
Bestow’s prices are competitive if you’re younger and buying less coverage, especially if you follow Clark’s advice. Clark says it’s important to buy life insurance from a company with an A.M. Best rating of A+ (A++ if you’re buying a term of longer than 20 years). Some of the options that are cheaper than Bestow do not have such high ratings.
Although Bestow has not made our list of best term life insurance companies, Bestow could still be a good option for you if:
Among the term life insurance products available from insuretech companies, there are more similarities than there are differences.
Some of them partner with legacy insurance companies (Bestow with North American, Haven Life with MassMutual). Some offer decisions in minutes and offer policies that never or rarely require medical exams (Bestow and Fabric). Others may offer cheaper prices in exchange for an application process that typically lasts several weeks (online insurance broker Policygenius).
If it’s important to you to have a short application process with a guarantee that you won’t need a medical exam, Bestow will give you what you want. But if you’re out to find the best price on the market from any company with an A+ or A++ A.M. Best rating, you probably can find a cheaper alternative.
Before buying a term life insurance policy, we recommend you read our full guide on how to shop for term life insurance.
This post was last modified on March 14, 2024 4:20 pm
If you plan to take an international flight or cruise anytime soon, there's one free…
Pop quiz: What's money expert Clark Howard's favorite tax-advantaged retirement tool? If you guessed Roth…
Are you considering subscribing to NFL Sunday Ticket for the upcoming season? Now may be…
Did you know major changes are coming for the way credit card processing fees are…
There’s a lot to love about Costco. The company has deals on just about every…
Money expert Clark Howard started a travel agency in his mid-20s and grew it into…