A contract between an insurance policy holder and an insurer or assurer in which the insurer promises to pay a specified beneficiary a sum of money upon the insured person’s death. Other occurrences, such as terminal sickness or severe illness, may also trigger payment, depending on the contract.
There are various variables to consider when purchasing life insurance online. Everyone’s financial planning toolkit should include life insurance. It protects your family and dependents in the event that you die.
The purchasing process might be complex and time consuming for many people who do not acquire life insurance online. Enough so that many simply do not apply for insurance, despite the fact that they would greatly benefit from it. Applying for life insurance online is one option to make the process easier, but should you do so?
Why Should You Purchase Life Insurance Online?
According to a study by LIMRA and Life Happens, 45 percent of consumers investigate but do not buy life insurance online; they prefer to purchase through an agent or financial advisor. However, a growing number of people are interested in and considering purchasing life insurance online. According to the same poll, 29% of customers say they would investigate and buy life insurance online, up 7 percentage points since 2016.
People are purchasing life insurance online rather than through an agent for a variety of reasons:
Purchasing life insurance online is simple and quick.
When compared to the typical life insurance application procedure, which can take weeks to months, buying life insurance online can take as little as 5 minutes. This is an excellent choice for business owners who have qualified for SBA loans and require term life insurance as collateral right now, as well as parents who require coverage immediately and are short on time.
It is convenient to purchase life insurance online.
You can apply for coverage at home or on your device at your leisure, with no need to speak with an agent. This is fantastic news for the 43 percent of Americans who claim that having to deal with an agent is one of the reasons they don’t have a life insurance policy. There are no scheduled meetings with your life insurance agent or medical exams.
However, buying life insurance online does not have to be a lonely experience. Licensed life insurance agents are frequently on hand to answer questions or offer advice.
This varies by business, but in many circumstances, you may purchase life insurance online without having to take a medical exam. Data and technology are used in more efficient methods, such as expedited and algorithmic underwriting, to evaluate how risky you are to insure and how much you should pay for coverage.
Some digital insurance providers may claim “no medical exam,” yet after going through underwriting, they may request a medical exam. Others may allow you to begin the application process but not to complete it. A little research will help you find out what kind of internet insurance firm or agency you’re dealing with and whether they genuinely offer life insurance with no medical exam.
Purchasing life insurance online allows you to be more flexible.
Term life insurance policies come in a range of lengths to suit your needs. You can get anything from a 10-year coverage for graduate school or while touring the world to a 30-year policy for your mortgage, and everything in between. You can also cancel or add more coverage from the comfort of your own home if necessary.
Purchasing life insurance online is a cost-effective option.
Data is used in accelerated and algorithmic underwriting to evaluate how risky you are to insure, as well as how much coverage you should pay. These prices are comparable to comprehensive medical underwriting term life plans (medical exams, lab testing, attending physician’s statements, and so forth).
Is it Safe to Buy Life Insurance Online?
Many consumers are naturally wary about using the internet to conduct such a crucial transaction as purchasing life insurance. When internet fraud is so rampant, how can you be sure you won’t be taken advantage of? And how can you tell if a corporation has taken precautions to protect your personal data from being stolen?
When purchasing life insurance online, one thing to consider is how secure the website is. In Google Chrome, for example, you’ll notice a lock pad icon in the address bar. Other symbols indicate that your connection is unsafe or even harmful; a closed lock indicates that your connection is secure and the website is safe to use. You can examine information about the website’s security certificates and cookies by clicking on the lock. Certificates are frequently displayed in the footer of websites.
Don’t be hesitant to conduct some study. If you come across an online insurer you’re unfamiliar with, use a search engine to check for negative reviews or potential scams. You should also check an insurance company’s financial rating to ensure that claims will be paid in the future.
Of course, you can protect your data by following some best practices, such as using strong passwords.
Although buying life insurance online isn’t for everyone, it is a terrific alternative for folks who need term life coverage right away and like to do their research and shopping on their own time. If you need some assistance, go with a firm that has excellent customer service and licensed agents who can assist you in making the best selection for you and your family.