Life Insurance

The 8 most important things to know about online life insurance

Aug 18, 2023
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With so many aspects of our lives and finances supported by digital platforms these days, you may be wondering if online life insurance is worth exploring. It’s only natural that you might be apprehensive to get an online life insurance policy if you’re not familiar with how the process works.

And it’s true: Online life insurance companies do things a bit differently than traditional insurers. But sometimes different can be better. 

Here, we break down the top 8 most important things to know about online life insurance to help you decide if it’s right for you.

1. Online life insurance is legit.

Yes, there is such a thing as online life insurance. Life insurance policies can now be purchased online, offering greater convenience and ease of comparison. This is particularly beneficial for those who prefer doing their own research and shopping at their own pace.

If you’ve seen ads or done google searches about it, you may have landed upon companies you haven’t heard of before and wondered if they are real. The truth is there are many new fintech companies entering the marketplace all the time, and some of them are better suited for you than others. That’s why it’s important to do your due diligence to make sure that you are working with a reputable online life insurance provider that offers products and services that meet your needs.  Be sure to check out review sites like BBB, Trustpilot and more to hear from customers.\ \ Types of Policies: Just like traditional life insurance, online life insurance also comes in various types such as term life, whole life, and universal life insurance. Understanding the difference between these is essential before purchasing a policy.

2. You can explore your options without a hard sell.

One of the major advantages of online life insurance is the availability of comparison tools. These allow you to compare different policies side by side, which can help you understand the differences and choose the best policy for your needs.

Traditional life insurance may provide that opportunity as well, but oftentimes, you’ll have to get on the phone with someone who may try to sway you into a policy when you might not be ready to make a decision.

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3. You can get immediate quotes and avoid a ton of phone calls

Online life insurance companies typically provide immediate quotes based on the information you provide. This allows you to quickly compare prices from different companies and select a policy that fits your budget.

If you know the online life insurance provider you wish to work with, then you can also head to their site or app and request a quote for different policy options or terms so you can find one that fits your budget and coverage needs.

4. The online application process is straightforward.

The application process for online life insurance is typically less time intensive than traditional methods. You usually fill out a questionnaire about your health, lifestyle, and family medical history, which the company then uses to assess your risk and determine your premium.

Sometimes you will have to upload certain documents, but you won’t have to worry about faxing or mailing anything.

5. You might be able to avoid a medical exam.

Some online life insurance providers offer no medical exam policies. While many traditional life insurance companies require you to get a physical exam including bloodwork and other diagnostic tests, online life insurers may give you the option to avoid that, by answering a few health questions during the application process.

While no medical exam life insurance is convenient, it may come with higher premiums, as the insurer is taking on more risk.

6. Your policy may remain digital.

Once you've purchased an online life insurance policy, it will typically be delivered electronically. It will be up to you to print it out if you wish to keep a physical copy for your records. You can also save it digitally and share it with your beneficiaries.

7. The best online life insurance companies have good customer service.

Even if an application process is done online, strong customer service is a crucial part of setting up an online life insurance policy. Be sure the company you choose has accessible, responsive, and helpful customer service, available through various means such as phone, email, or online chat.

Research the company's reputation and look for customer reviews and ratings to understand the experiences of others. Keep an eye on how the company handles claims, as this can be a strong indicator of their reliability and service quality.

8. Online life insurance companies go to great lengths to protect personal and financial data.

Given that purchasing life insurance online involves sharing sensitive personal and financial information, it’s imperative that an insurance company's website uses robust security measures to protect your data.

When vetting potential online life insurance providers, be sure to inquire about their security protocols. 

Is online life insurance right for you?

Now that you understand some key components of online life insurance, you can decide if it’s a good match for you. Anyone who prefers a low hassle application process, quick results, and transparent quotes and information might find online life insurance to be a great option.

ChatGPT was used for idea generation, but the author made significant modifications and takes ultimate responsibility for the content.

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