You are probably doing more and more business online and that’s smart. It’s easy to research and save money and time when you let your fingers do the work. But is it safe to buy life insurance online? Yes and No.
Granted I am biased here because I run an online life insurance site and I also suggest that people who want to buy life insurance consult with me for free before submitting an application. But with that disclaimer out of the way let’s take a closer look at this topic because it could be one of the most important decisions you ever make for your family.
The Pros of Online Life Insurance
Again, it’s just smart to figure out how much life insurance you really need and compare life insurance policies online. There is absolutely no harm in that. It’s also wise to get quotes without a life insurance agent breathing down your neck. And getting those quotes online makes all the sense in the world – in most cases. But that leads us to the negative side of online life insurance shopping.
Cons of Online Life Insurance
First of all, chances are good that your situation is unique. You might be a senior who needs life insurance or you might engage in high-risk activities. You might have a special health condition like cancer or diabetes. Or you might travel a great deal. All these situation call for a little more direction and attention than an online site can provide. Not all companies sell policies that cover these situations. And even if one company would sell you a policy given your unique situation, it doesn’t mean that the rates you get will be competitive.
When it comes to situation like those I’ve described above, it pays to get more information and that means talking to somebody. If the person you consult with is professional, objective and honest, he or she will direct you to the company that best suits your needs.
Keep in mind that it can take 6 weeks or longer to underwrite a life insurance policy. The last thing you want to do is waste that time with the wrong company. I recall one gentleman Ken who was in fact diabetic. He came to me after he was turned down by a company that rejected his application four weeks after he applied online. That was precious time and it was wasted unfortunately. And because he was formally rejected, it made it more difficult to actually place the policy later on – which we did.
Even if your situation is very straight forward. Are you sure you aren’t buying too much life insurance? Many people make this mistake. Although the beneficiaries never complain, why should you waste money on insurance you don’t need? An online life insurance calculator is great for telling you how much insurance you need now. But your needs will change and the calculator can’t tailor make a plan to suit your needs.
Isn’t it better to only apply to those companies who want to write the insurance? Isn’t it smarter to not waste time and take the chance on getting a rejection by applying with the wrong company? Doesn’t it make sense to build an insurance plan that is tailor made to fit your needs?
The only way to do these things is to speak with an agent.
Of course, when you talk to someone who sells life insurance, you’ve got to make sure that he or she isn’t a captive agent. “Captive” means the agent only represents one life insurance company. When you go shopping for life insurance coverage you want those life insurance companies to compete for your business and the only way that is going to happen is if you work with an independent agent (like me 🙂 ).
Buying life insurance online is great. Use the internet to do the basic research. It will absolutely save you time and money. But when it comes to making an application, it’s wise to first talk to agent to make sure you are applying to the right company for the right amounts.