subject: What To Look For When Shopping For Life Insurance Online [print this page] Purchasing term life insurance online is an important step in securing the future for a family or business. There are several places online that provide quotes, a variety of terms, and options. Consider these few things before shopping for term life insurance online.
The Company's Reputation
With so many websites available to get quotes and information, it's a good idea to see how long the website or company (because they may have different numbers) has been in business. It's important to verify a business' reputation, before divulging all of your personal information to keep yourself and your family safe.
Be on the look out for companies that do not offer an 'about us' page or pages that state the company contracts with partner agents or agencies or mentions that other companies may contact you. These companies do what is called lead aggregation, and they collect information and sell it to other companies, sometimes as many as 8-10 of them. This can lead to confusion with policies, underwriters and quotes. However, these lead aggregators should not be confused with legitimate insurance companies that hire advisors who are licensed with multiple companies to sell term life insurance online. By following these tips you can save yourself a lot of hassle.
What Is Being Purchased?
There are multiple types of policies offered by most companies. Each of the policies has their own terms and conditions, and may be a bit confusing. The websites that provide the best information are great resources, and typically reputable companies. Before making a purchase of any kind of coverage be sure to know the differences. Here are two of the main types of policies, to get started.
Term life is for a certain amount of death benefit, covering only a specific amount of time. During the time the premiums and payouts never change. At the end, there can be an option for renewal. This type is often used for stay home spouses or for those with children who still live at home.
Whole life is a type of policy with premiums that build into a cash value and a death benefit. As long as premiums are paid, the cash value and death coverage are guaranteed. Cash values can be used for other financial matters. There are several kinds of whole life policies, also considered to be permanent policies. Anyone interested in this type of coverage should consult an advisor to fully understand the differences.
How To Compare Life Insurance
It's important to compare life insurance -- there are often many options available and one policy may not offer the same features and benefits as another. To compare life insurance, make a list of all of the benefits of a policy, as well as a quote amount (though this is not guaranteed). It is often better to stick with just a couple of different companies at most when you compare life insurance, outside of this, the different terms may be difficult to decipher or keep track of.
What Is Required From The Buyer
When purchasing term life insurance online, it's important to read all of the terms. Be sure to understand exactly what will be covered, as well as what is required to complete the contract. Often times an exam and blood test are required. Sometimes a person is not covered under certain hobbies or jobs without high-risk coverage. Smoking is often considered high-risk coverage as well, so if someone is a smoker they may have to purchase a completely different policy altogether. It will come down to the research done before selecting coverage, and the company involved as well. Either way, be sure to understand what is required before signing or purchasing coverage that may not cover what is actually needed.
How Much Coverage To Get
As far as how much coverage is needed, the person buying term life insurance online must first figure out how much of a death benefit they want to leave behind. To do this, consider the bills that must be paid off and the funeral expenses for the kind of viewings and burial desired. If leaving children and a spouse behind, a salary will have to be taken into account as well as debts, future incomes, mortgage and car payments, and children going to college. For the sake of clients, most reputable companies offer coverage calculation that will help you consider the amount of coverage wanted, as well as the premiums you would pay.
Buying term life insurance online is never a fun task, but is often necessary if there will be anyone left behind that depends on you. Family needs and comfort are two of the best gifts that could be left for loved ones who will be left to deal with the loss. Consider everything that would have been done if you never did pass, and include that, so that no matter what happens, your wishes can be carried out.
by: Chris Harmen
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