Earlier, getting approved for life insurance would take weeks. However, now, online tools have made obtaining life insurance quicker and easier.
Purchasing life insurance online doesn’t require you to undergo a health exam or other such procedures.
Companies offering online life insurance rely on big data that reveals your patterns to understand your health, habits, and behavior. Here are some tips to know if you plan to buy life insurance online:
You’ll Probably Need More Life Insurance Than You Think
Though term life insurance is sold in terms of a single-sum death benefit, it’s usually purchased to replace an individual’s income if they were to pass away early.
While the ideal amount of coverage varies from one individual to another, the general rule is to get coverage amounting to your income multiplied ten times.
Term life insurance brings with it the benefit of being cheaper than permanent life insurance.
Make Sure Your Insurer Stays Around For Decades To Come
Life insurance is meant to provide you financial protection for several decades, making it important that the company you purchase insurance from stays around if and when you file a claim.
To confirm how reliable the companies you’re considering are, check their ratings on Moody’s, A.M. Best, Standard & Poor’s.
The Advice Available May Be Less Than Usual
Getting life insurance through an agent helps you get the counsel you may not get online. This extra information can help you better understand how much insurance you should get, which policy you should choose, and how to pick your beneficiary.
When you decide to buy life insurance online, you may not have access to such information. In such a situation, your best bet to be prepared is to research more.
You Need To Shop Around Between Companies
Prices of life insurance differ from company to company and person to person. An extremely healthy person may get a cheaper term insurance policy by choosing the conventional way of submitting their bloodwork and EKG.
However, it may take weeks for them to get approval. A less healthy person may decide to pick the streamlined online route of online life insurance as it is faster and cheaper.
You’re likely to be offered different prices by different companies for the same types of policies.
Aside from these tips, also remember to pay your life insurance fee annually to avoid unnecessary fees.