As always, life insurance has been a part of financial planning. It gives you peace of mind because you are assured that if something happens to you, your family will be financially taken care of. Buying life insurance traditionally meant scheduling a series of appointments with agents to fill out complicated paperwork, and take a medical exam. Today you can buy life insurance online that is fast, convenient, and easy to get. Whilst there are both advantages and disadvantages to this method of purchasing insurance, if you’re looking for a hike in your monthly income, this is a good place to start.
What is Online Life Insurance?
Referred to as ‘online life insurance’, this means purchasing life insurance policies online, either directly through a digital platform or from a website without the intervention of intermediaries or brokers and without meeting with the agent. For the most part, these platforms help you through the process of applying, getting quotes, and even being approved, all without leaving your house. If you’re like many companies, there are some like Ethos that have policies with no medical exam or blood test so the whole thing is much faster and simpler.
The Pros of Buying Life Insurance Online
1. Quick and Easy Application Process
The speed of buying is one of many huge advantages of buying online life insurance. In contrast to the way conventional insurance works, where you’re required to meet with your agent, fill out paperwork, and wait for approvals, online life insurance companies don’t work that way; you can get coverage in just a few minutes. That’s why with some providers like Ethos, you can have coverage in as little as 5 minutes and sometimes even without a medical exam, which is much faster than the traditional process.
2. No Need for Medical Exams
However, in traditional life insurance processes, you will usually have to go through a medical exam to find out what shape you are in and to figure out your premium rates. But while there are still many online life insurance providers, such as Ethos, that sell policies without medical exams, the application process is much smoother. Instead, however, you simply answer a couple of health-related questions and provide information to the insurance company which they use to determine your eligibility and premium rates. This is particularly beneficial for individuals who may find medical exams inconvenient or stressful.
3. Competitive Pricing and Transparency
When purchasing life insurance online, you can easily compare different policies and rates in real time. This transparency ensures that you’re getting the best possible deal for your needs. Online life insurance providers typically offer competitive pricing, and because the process is automated, there’s less overhead for the company, which often translates into lower premiums for the policyholder.
Additionally, many online platforms provide instant quotes, so you can quickly see how much coverage will cost based on your chosen policy and preferences. This removes the guessing game and gives you control over your decision.
4. No Pressure from Agents
One of the biggest benefits of purchasing online life insurance is the ability to make decisions without the pressure of an agent trying to upsell or convince you to buy more coverage than you need. When you purchase life insurance online, you can take your time to read through all available options, compare different policies, and choose the best one for your financial situation. You can also revisit the platform at any time to adjust your selections.
5. Added Benefits (Free Will and Trust)
Many online life insurance providers, like Ethos, offer extra services such as free legal will preparation as part of their policies. This added benefit can be worth up to $898, giving you even more value for your money. With free will included, you can ensure that your assets are distributed according to your wishes, without additional costs or hassle.
The Cons of Buying Life Insurance Online
1. Lack of Personal Assistance
While buying online life insurance offers convenience, it also comes with the downside of limited personal interaction. Some people prefer having an agent explain the details of policies, answer questions, and guide them through the process. If you’re someone who feels more comfortable with one-on-one support or need help understanding complex policy terms, buying life insurance online might not be the best fit.
However, many platforms, like Ethos, offer customer service support to answer any questions you may have, but it’s not the same as having an in-person conversation with an agent.
2. Limited Policy Customization
While online life insurance can be a great way to get coverage quickly, some policies may offer fewer customization options compared to those available through traditional methods. Traditional life insurance agents can work with you to tailor a policy to your unique needs, including adding riders or adjusting coverage for specific scenarios. In contrast, online platforms may have fewer customization features, as they typically focus on providing a straightforward solution for basic life insurance needs.
3. Impersonal Experience
Some people prefer the personal touch that comes with meeting an insurance agent in person. An agent can explain the fine details of a policy, offer advice on what coverage might be best for your situation, and provide additional resources that online platforms might not offer. If you value personal interaction and expert guidance, the online life insurance experience may feel impersonal.
4. Potential for Over-Simplification
While the simplicity of buying life insurance online is one of its benefits, it can also be a disadvantage. Life insurance policies can sometimes be complex, and simplifying them for easy online access may mean missing out on important details. It’s essential to understand the exclusions, coverage limits, and terms of any policy you’re considering, and sometimes a traditional meeting with an agent can help clarify these nuances.
Comparing Online vs Traditional Life Insurance: A Quick Overview
As shown in the table, online life insurance offers several advantages, including instant underwriting, no medical exams, and same-day coverage. However, traditional life insurance might still appeal to those looking for more personalized service and customization.
Conclusion: Is Buying Life Insurance Online Right for You?
Purchasing online life insurance offers a variety of benefits, such as quick and easy applications, competitive pricing, and no medical exams. It’s a convenient option for those who prefer to handle their financial planning independently and without the pressure of an agent. However, it may not be suitable for everyone, especially those who prefer a more personalized approach or need extensive policy customization.
Ultimately, whether online or traditional life insurance is the right choice depends on your individual preferences and needs. If you’re comfortable with technology and want a straightforward, affordable solution, online life insurance can be a great fit. However, if you value personal guidance and a more tailored policy, traditional life insurance might be the way to go.