How to Buy Life Insurance Online


Getting a life insurance policy the traditional way with a physical exam usually takes up to two weeks. With the advent of the digital age, it can now be purchased with a single click in a matter of minutes. On the downside, that can mean missing out on crucial information and advice from an agent.

Here are 5 important things to keep in mind before purchasing a life insurance policy online:

Compare Multiple Policies and Companies

There are usually no standard rates across the board with different companies offering different prices for the same types of policies. In case you are an exceptionally healthy person, you will most probably get cheaper life insurance through the traditional route. However, a relatively less healthy person may get cheaper insurance online with a less extensive checkup policy.

To get the best prices for your requirements, check out websites such as PolicyGenius and NerdWallet that allow you to compare different companies and policies.

Research Thoroughly

With usually an overly simplified process online, inevitably some information may be left out. Go through all the term related documents and do your research. You can also use websites such as the Insurance Information Institute before making an informed decision as to how much insurance to purchase, which policy to select, and other important aspects.

Purchase Sufficient Life Insurance

Term life insurance is sold as a single-sum death benefit and is meant to replace one’s income in the case of early death. While this can be a variable amount based on when the person passes away, it is generally a good rule of thumb to purchase an amount that is 10 times your income.

Factor the Longevity of Your Insurance Provider

In some cases, life insurance policies can extend over decades, and hence it is crucial to ensure that your insurance provider is active when the claim is submitted. Before purchasing, check the ratings of the companies you are looking at on rating agencies such as Standard & Poor, Moody’s, and A.M Best.

Pay Annually

Most insurance providers offer their customers the option to pay on a yearly, quarterly, or monthly basis. However, in most cases the interest rates are higher for monthly and quarterly payments. Select the yearly option when paying for your life insurance policy for added savings.