Walnut Term Life Insurance Review
Life insurance policies are quite useful and necessary policies since they allow beneficiaries to have economic support not only in the event of the insured’s death but also in case he/she becomes disabled. However, these policies are not always easy to implement, so we present Walnut Term Life Insurance, a product with two attractive features: accessibility and simplicity.
Far removed from negative stigmas and taboos, being prepared to face unwanted events is more of a necessity than a luxury. Faced with the death of a loved one or an illness or accident that leaves you incapacitated, it is normal to feel great pain and emptiness, but this does not eliminate the financial responsibilities that are generated. That is why being prepared to protect the people we love is a wise decision, even if we are not around.
Once we have decided to take out life insurance, the task of comparing and evaluating the immense choice of insurance companies follows. Each person has different circumstances that will make him/her decide on one option, and this time we will focus on giving you the details of one of these alternatives: Walnut Term Life Insurance. Let’s see what the characteristics of this product are, how to contract it, its costs, and its advantages and disadvantages.
What is Walnut Term Life Insurance?
Walnut is an insurance company based in Toronto, Canada, with offices and registration in the United States. Their main goal is to simplify insurance and make it more accessible, so they have taken insurance basics and applied a digital transformation process. The result: simple, accessible, easy-to-contract insurance with transparent costs.
Their main product is Term Life Insurance, a policy that is 100% online and has multiple benefits. But before detailing the characteristics of this product, it is important to know what term life insurance is.
A life insurance policy is a coverage policy that indemnifies the contract’s beneficiaries with a certain amount of money in case the insured dies or becomes disabled due to an accident or serious illness. Some insurance policies even cover the insured’s survival in the event of an event that could have caused death. This insurance serves as a form of economic protection for the family in case an unfortunate event happens to the insured, especially if this person is the family’s main provider.
Now, depending on the term for which the contract is in force, there are two types of life insurance:
Permanent life insurance:
This insurance functions as savings the insured can draw on within the contract terms. He can withdraw part of his insured capital, invest it or use it as a guarantee in bank loans. These premiums are usually higher, given the level of flexibility offered to the insured. In this type of insurance, the policyholder decides when to terminate the policy, except in the circumstances delimited by the contract in which the company is given the power to terminate it.
Term life insurance:
As its name indicates, this type of insurance is not indefinite but has an expiration date. During this term, the policy premium does not vary until it is renewed. When the policy is renewable, the insured does not need to repeat the medical exams to qualify, even if he/she is already at an advanced age. On the other hand, when the policy is non-renewable, the insured must pass the medical exams again when the contract expires. In terms of cost, term insurance is more affordable.
With this in mind, let’s look at how Walnut Term Life Insurance works and its features and costs.
How does Term Life Insurance work?
Walnut Term Life Insurance is a product that the company offers in association with SBLI, an insurance company with a financial strength rating (FSR) from AM Best. It is a 10- or 20-year term insurance product, which can insure between US$ 50,000 and US$ 1,000,000.
In addition, it allows the contracting of additional benefits for members, which include:
- Headspace mental health and wellness guides.
- Premium protection from Dashlane.
- On-demand video fitness classes with Classpass.
One of the advantages of this life insurance is that, unlike other traditional insurance, Walnut does not request medical exams from the applicant to complete the contracting process. The company is in charge of doing the necessary research for each applicant, so it does not ask for medical tests.
Below, we will look at some of the points you should keep in mind to understand how Walnut term life insurance works:
What happens if the insured does not require coverage during the term of the insurance?
Because this insurance has a set term, it is important to remember that if the policyholder outlives this time or nothing happens to him/her, that would trigger the insurance coverage. He/she would not receive a premium return, nor would his/her beneficiaries. However, the policyholder can renew the insurance to continue being protected by paying a new premium.
Is anyone approved for term life insurance?
Remember that, as with any insurer, the company reserves the right of eligibility when approving applicants’ policies. The fact that Walnut does not require medical examinations does not mean that any applicant, regardless of his or her circumstances, should or can be approved.
You may contact the company’s customer service if your application is denied by emailing firstname.lastname@example.org.
Why do you require my SSN and personal information?
Walnut works online, so the applicant must provide the necessary information for identification and verification. Both the SSN and the questions asked in the application process are necessary for the company to determine if you are eligible or not. This information is protected as the company complies with Canadian and U.S. data protection and privacy laws.
How much does Term Life Insurance cost?
Taking out life insurance can be expensive, depending on the type of insurance and the company you choose. However, Term Life Insurance is characterized by its affordability, which seeks to be an inclusive and valuable product.
The cost of your insurance premium will depend on multiple factors, such as age, height, and weight, amount insured, term of insurance, even the area of residence.
For 10-year policies, a middle-aged person (between 30 and 35 years old) can have a premium of less than US$ 10/month for a capital sum insured of US$ 50,000 and up to US$ 35/month for the maximum coverage of US$ 1 million.
On the other hand, this same person can choose the 20-year term policy, in which case the monthly premium for an insured capital of $50K would also be close to US$ 10/month. Still, for a capital of one million dollars, the premium will be approximately US$ 48.
Now, if you want to obtain additional benefits for members, keep in mind that this will increase the value of your monthly premium. To quote your premium, you must go to Walnut’s official website and request your quote in a few minutes.
Means of payment
Being a relatively new company, Walnut is in the development process, so its product offerings and payment methods are limited. Life insurance can only be paid by wire transfer (ACH).
How much coverage do I need on my life insurance?
Walnut offers maximum coverage of $1,000,000 per policy on its life insurance. One way to estimate how much capital you need to insure in your case is to multiply your annual income by 10. This amount should be enough for your beneficiaries to cover their financial needs. However, each case is different; while one policyholder may need less than this amount, another may need more depending on his or her specific family burdens and financial needs.
Is it safe to use Term Life Insurance?
Walnut Insurance Inc. is a Canadian registered company with its head office in Toronto. It is also registered in most U.S. states, with open registration processes in the remaining states. In these cases, Walnut relies on one of its partners in issuing insurance, Nimbus 7 Inc.
Is Walnut Insurance legal?
Below is the list of provinces and states in which Walnut is licensed.
Walnut Insurance Inc. licenses (Canada)
- Alberta – Accident and Sickness: S-3294786-11208101-2021
- Alberta – Life: P-3294786-11208101-2021
- British Columbia: LIC-2022-0035351-R01
- Manitoba – Accident and Sickness: AIA-48218-2952-2021
- Manitoba – Life: LIA-48218-2952-2021
- Northwest Territories: NT-A4-9361-2022
- Nova Scotia: 21 3847113 00F2
- Nunavut: 20219819
- Ontario: 37990M
- Prince Edward Island: 48248
- Saskatchewan: 085760
- Yukon: 2124-17-9900
Walnut Insurance Services LLC Licenses (United States)
- Alaska: 3001246354
- Arizona: 3001278744
- Arkansas: 3001246166
- Colorado: 685626
- Connecticut: 2715304
- Delaware: 3001214667
- District of Columbia: 3001224533
- Georgia: 217886
- Hawaii: 530686
- Idaho: 840033
- Illinois: 3001246191
- Indiana: 3647445
- Iowa: 3001267359
- Kansas: 861926228
- Kentucky: 1125064
- Louisiana: 920054
- Maine: AGN378024
- Maryland: 3001267273
- Minnesota: 40731559
- Mississippi: 1504055
- Missouri: 3001269780
- Nebraska: 3001224668
- New Hampshire: 3001246293
- New Jersey: 3001224710
- New Mexico: 3001263495
- North Carolina: 3001224557
- North Dakota: 3001224633
- Oklahoma: 3001224640
- Oregon: 3001237497
- Rhode Island: 3001224644
- South Carolina: 3001224703
- South Dakota: 10028144
- Tennessee: 3001224555
- Texas: 2645548
- Utah: 839926
- Vermont: 3659516
- Virginia: 151034
- Washington: 1097949
- West Virginia: 3001246661
- Wisconsin: 3001224667
- Wyoming: 459041
Walnut is a company that enjoys having high-level partners, such as SBLI Insurance, Nimbus 7 Inc, Dashlane, and CyberScout, among others. These agreements give strength to Walnut’s offer, as well as the assurance to customers that their coverage will be executed at the time it is required.
- No medical exams are required for applicants between the ages of 18 and 60.
- Fast, 100% online, paperless process.
- The premium price is fixed for the term selected for the insurance. It may vary only at the time of renewal.
- 24/7 customer service.
- Discounts on additional coverages.
- Walnut does not offer permanent life insurance.
- Not available in New York (United States) or the provinces of New Brunswick and Quebec (Canada).
To Sum Up
Based on what we have analyzed, we can conclude that Walnut Term Life Insurance is an excellent alternative to guarantee our family’s financial peace of mind during a crisis. Starting with the fact that it is a legal company with the backing of SBLI, an insurer with more than 100 years of presence in the market.
Another point that makes this insurance a recommendable option is that it has a competitive cost and is easy to contract. You don’t even need prior medical exams to attend face-to-face appointments at an insurer’s office or talk to an agent (although you will be able to do so if you need help). The whole process is completely online, fast, and paperless. Simply set the conditions you want for your insurance, quote, pay, and you’re done.
Remember that during the selected period, the premium will remain the same but may change at the time of renewal. However, the advantage of this type of insurance is that it is more affordable than permanent life insurance. So, it is ideal for people with a limited budget who want to provide their families with financial security.
The main disadvantage of Walnut’s Term Life Insurance is its lack of term flexibility, as only 10 and 20-year terms are available. Considering that other insurers offer a wider range of options, it is important to consider whether these terms are what you are looking for in your insurance.
Other than this, the fact that it only offers term but not permanent life insurance makes this policy an option worth evaluating when looking for coverage to protect the people we love.Visit Walnut Term Life Insurance