Author
Bowtie Team
Updated on
2025-07-09
Disclaimer: This article is translated with the assistance of AI.
Should you choose Term Life or Whole Life Insurance? With Bowtie Term Life premiums as low as $40/month, how do we make it possible? And why does our underwriting process only ask 3 simple questions? Today, the Bowtie actuarial team breaks down the design philosophy behind Bowtie Term Life Insurance.
1. Actuarial View: Who Needs Term Life? Who Needs Whole Life?
Bowtie Actuarial Team : First, let’s clear up a fundamental insurance concept. “Term Life Insurance” isn’t just about short-term protection. While the policy term is generally shorter, most plans guarantee renewal up to age 85 or beyond. Check out the key differences in the table below:
| Term Life Insurance | Whole Life Insurance |
| Offers pure life protection, so there’s no cash value upon surrender |
|
|
|
2. Why Skip the Savings Component in Life Insurance?
Bowtie Actuarial Team : We firmly believe that the core value of insurance lies in providing protection against sudden, unpredictable events or situations. Savings and investment components are merely add-ons to insurance products.
If you’re looking to invest through insurance, the transparency of the investment portfolio is often low and hard to manage. Plus, your invested funds are quite restricted, with lower liquidity. If you decide to surrender the policy early, you’ll face hefty surrender fees.
While pure protection life insurance offers plenty of benefits, the market today is flooded with investment-linked insurance products. That’s why Bowtie is here to shake things up! With our mission to “Make Insurance Good Again,” our product designs focus on filling gaps in protection coverage. We aim to help our customers get adequate protection at the lowest possible premiums.
3. Why Does Bowtie Offer Only Annual Renewal Instead of Multi-Year Renewal Options?
Bowtie Actuarial Team : At Bowtie, we value our customers’ feedback and regularly review our insurance products. When the time is right, we may introduce longer payment terms to better suit your needs.
4. Underwriting Takes Just 3 Questions? How Are They Set, and Is It Easier to Pass?
Bowtie Actuarial Team : Yes, you can complete the underwriting process for Bowtie Term Life with just 3 simple questions. These include:
- Has the insured ever been diagnosed with cancer, heart disease , stroke , or progressive neurological disorders?
- In the past 5 years, has the insured been diagnosed with or suffered from any of the following conditions? (This includes diabetes, high blood pressure requiring medication, high cholesterol needing treatment, asthma or respiratory issues, liver, kidney, or gallbladder problems, anxiety, stress, or depression , attempted suicide, or hospitalization for more than 3 days (excluding pregnancy or fractures).)
- Apart from the above, is the insured currently undergoing treatment, awaiting test results, hospitalized, or experiencing symptoms requiring medical attention?
These 3 questions were carefully designed by Bowtie in collaboration with our reinsurance partners. They focus on the insured’s medical history and are linked to mortality risks, helping us effectively identify high-risk customers.
Get a Quote for You and Your Family: Bowtie Term Life
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