How to buy life insurance online – InsuranceNewsNet
iQuanti: Investing in life insurance can be a great financial decision if you want to protect your loved ones, and in just a few steps you can get a policy that’s right for you. You can get a life insurance policy online without having to leave the comfort of your own home, other than a medical exam in some cases. This article will walk you through how to buy life insurance online, from selecting a policy type to signing the final paperwork.
1. Choose a type of policy
First, you need to decide whether you want term life insurance or permanent life insurance. Term life insurance tends to be much cheaper, but only lasts for a fixed term, usually 10 to 30 years.
Meanwhile, many permanent policies cost more but last a lifetime. Plus, they offer a cash value growth component. A portion of each premium goes into cash value, which increases tax deferred. Several types of permanent fonts may be available to you:
- Whole life insurance: Whole life insurance comes with fixed premiums and a death benefit. Cash value grows at a fixed, guaranteed rate.
- Universal life insurance: With universal life insurance, you will benefit from a death benefit and adjustable premiums. The cash value increases with current interest rates and you may be able to pay premiums with it.
- End-of-stay expense insurance: This type of life insurance doesn’t require a medical exam and comes with a small death benefit that your beneficiaries can use to cover funeral, burial, and end-of-life expenses. Premiums are generally affordable.
2. Determine your coverage needs
Your coverage needs depend on your current income, expenses, debts, life insurance budget and the number of beneficiaries you have. For example, if you don’t have kids at home and you don’t have a lot of debt, you might not need as much coverage. On the other hand, if you have multiple children and large loans, like mortgages and car loans, you may want to look for a higher death benefit to ensure your family is covered.
3. Shop around for quotes
Insurers may offer different rates and conditions for the same policy. Shopping with multiple insurers and getting multiple quotes is key to finding the best rates on the coverage you need, reducing the cost of your life insurance.
3. Gather your documents and apply
Now that you’ve gathered quotes, you can choose one that fits your budget and needs, gather your documents, and apply. Some documents and information that may be useful to have on hand include:
- Proof of identity (such as a driver’s license, ID card, valid passport or birth certificate)
- Proof of occupation/income (pay stubs, W2 form, employment verification letter)
- Net worth (documents proving ownership of assets such as home, vehicle, and savings and investment accounts)
4. Schedule and have a medical examination if necessary
If you have a traditional term or permanent life insurance policy, you may need to pass a medical exam for the insurer to underwrite your policy. The insurer will give you instructions for scheduling and attending the exam.
Once the exam is complete, the medical examiner will send your results to the insurer for underwriting. This process can take a few weeks, so you will just have to wait for your insurer to contact you.
5. Sign the documents and buy your policy
Once underwriting is complete and your policy is approved, your insurer will contact you with your monthly premium amount and other terms. If you accept the terms of the policy, you can sign the documents online. You will also make your first premium payment to sign up and officially start your life insurance coverage. In the future, you can make a premium payment monthly or annually.
Get life insurance online from the comfort of your home
With so many insurers online today, it’s easy to get a life insurance policy from the comfort of your own home. Once you’ve chosen a policy type and determined your coverage needs, the rest of the process is simple. Search for quotes and choose the best one, gather your documents and apply, pass the medical examination if necessary, then sign the documents and pay your first premium. Follow these steps and in no time you will have a life insurance policy that fits your needs and your budget.
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