Some of the best moments in life are those spent with family members, so you want to do everything possible to ensure their future is secure. If you should die unexpectedly, purchasing a life insurance policy will help assure your loved ones will have the necessary funds to continue living comfortably.
In today’s digital world, many people turn to the internet to shop for and buy life insurance.
Keep reading to learn more about why you need life insurance and how you can obtain it online.
How to Buy Life Insurance Online
Most insurers offer online quotations, allowing easy comparison shopping for the greatest value. When searching for life insurance online, you can begin your search by looking for specific life insurance carriers or types of life insurance policies.
You can compare policies by using insurance comparison sites like Benzinga.
Step 1: Request a Quote
You’ll need to fill out a life insurance application, either online or on paper, to get your coverage. Application information normally includes basic contact information (name, phone number, email) and the type of policy desired. You may also need:
- A Social Security number
- A driver’s license
- Birth date
- Financial data (your income or financial worth)
- Medical information such as height, weight, medical conditions or illnesses, prescription information
- Nicotine or tobacco use
- Beneficiary’s name and birth date
- Beneficiary’s Social Security number
Step 2: Compare Quotes
Once you receive several life insurance quotes, the Insurance Information Institute (III) recommends you consider the following to find the right type of policy for your situation:
- Types of policies the provider offers (term life, universal life or whole life)
- Available riders for accidental death, children, waiver of premium or long-term care
- Payment options
- Physical exam
Step 3: Adjust Your Quotes as Needed
Once you have your quotes, you can go back to the website and make any adjustments needed to obtain new quotes. For example, you can try different options and criteria to adjust your quote to your preferred premium.
Step 4: Purchase Your Policy
After deciding on the type and amount of coverage you want, it’s time to apply. The buying procedure varies according to the policy type, company and whether you interact with an agent, broker or directly with the company.
Why Buy Life Insurance?
Life insurance can ease your mind when considering your family’s future financial security, but figuring out where to begin can be overwhelming. Following are a examples of how life insurance may be beneficial.
Life insurance provides financial stability for your family should you die unexpectedly. If you are the financial provider, your family may struggle to meet daily costs following your death. After you die, life insurance takes care of your family's necessities and financial commitments.
Chronic or Terminal Illnesses
A cancer diagnosis is painful emotionally, but financial concerns add to the stress. For example, if you can't work because of disease, how will you pay your bills? The cash value of some whole life policies can pay for living expenses while you recover from cancer.
Whole life insurance provides a cash value to help pay for emergencies or significant purchases like a new home or automobile. You also can pay for college fees or start a new business with the earnings. The options are unlimited. A whole life policy's cash value can help you reach your financial goals.
Eldercare Life Insurance
You never know when you'll need long-term care like assisted living or a memory-care facility. Life insurance isn't the same thing as long-term care insurance — it’s a type of supplemental health insurance. Some life insurance policies can be converted into eldercare services by selling them to a third party for a fee.
Which Life Insurance Policy do you Need?
There are two basic types of life insurance: permanent life insurance (lifetime coverage) and term life insurance (temporary coverage for a specific term, whether it’s 10, 20 or 30 years. The type of life insurance you need and how much coverage you need depends on your unique circumstances.
Some of the most common types of life insurance policies and who each policy is best suited for include:
Term life: Policy lengths range from 10 to 30 years, depending on the type of policy and the insured's age. After you die, your beneficiary receives the death benefit from the term life insurance policy, but this policy does not come with a cash value option.
Term life insurance is more affordable than whole life insurance and could be a good option for those on a tight budget. Think about whether you can convert your term insurance to a whole life policy at the end of the policy.
Permanent life: Permanent life insurance, or whole life insurance, protects you for the rest of your life. It accumulates cash value that you can borrow against, therefore providing a death benefit. The interest rate on a whole life insurance policy is fixed, and the premiums remain the same for the duration of the policy.
Universal life: A whole life policy with adjustable premiums is known as universal life insurance. A savings feature of the policy enables you to make additional payments that are deducted from the policy's cash value.
Throughout the policy's life, both the cash value and the death benefit increase in value, but the face amount of your universal life insurance policy is all your beneficiary receives after you die. The life insurance company keeps any accumulated monetary value.
Indexed universal life (IUL): If you're looking for a strategy to save for retirement, an indexed universal life insurance policy may be your option. It's possible to designate interest earned on an indexed universal life insurance policy to an interest-bearing investment account. Tax-deferred interest on the IUL policy's cash value grows as a result of the interest generated. If you need to postpone premium payments for a while, you can use the interest to do so.
Guaranteed universal life (GUL): A guaranteed universal life Insurance policy is a hybrid of term life and whole life insurance. There are no year-to-year terms, and you can choose the age at which the coverage expires. In most cases, it lasts until the policyholder's 80th birthday. The policy is less expensive than whole life insurance, but it also has a cash value feature. With the GUL, you can receive a long-term life insurance policy for a fraction of the cost of term insurance.
Variable universal life (VUL): The VUL policy is a whole life insurance policy with an integrated savings account. Subaccounts of the savings account are invested. Larger investment returns are possible, but they come with a higher risk because of market volatility. Your premium payments are deposited into a savings account from which the subaccounts are drawn. The savings part of the policy is not included in the death benefit. The cash value of the VUL policy will remain unchanged if the investments in the policy are not liquidated. The death benefit, on the other hand, remains unaffected.
Compare Life Insurance
Benzinga offers insights and reviews on these life insurance providers, including policy offerings, virtual payment platforms, online purchasing ability and other criteria. You can begin here on your search for the best life insurance policy to protect you and your family.
- securely through Ladder Life Insurance's websiteBest For:Adjustable coverage
Ladder Insurance Services, LLC (Cal. license # 0K22568; Ark. license # 3000140372) offers term life insurance policies: (i) in New York, on behalf of Allianz Life Insurance Company of New York, New York, NY (policy form # MN-26); and (ii) in all other states and the District of Columbia on behalf of Allianz Life Insurance Company of North America, Minneapolis, MN (policy form # ICC20P-AZ100 and # P-AZ100). Only Allianz Life Insurance Company of New York is authorized to issue life insurance in the state of New York. Insurance policy prices, coverages, features, terms, benefits, exclusions, limitations and available discounts vary among these insurers and are subject to qualifications. Each insurer is solely responsible for any claims and has financial responsibility for its own products.
- securely through Haven Life Insurance's websiteBest For:Under Age 64
Haven Term is a Term Life Insurance Policy (ICC21 Haven Term in certain states, including NC) issued by C.M. Life Insurance Company (C.M. Life), Enfield, CT 06082. In New York (DTC-NY) and California (DTC-CA), it is issued by Massachusetts Mutual Life Insurance Company (MassMutual), Springfield, MA 01111-0001.
Don’t Go Without Financial Security
Don’t leave your loved ones unprotected. Life insurance will help your loved ones continue to live comfortably after your death as well as protect your financial assets.
If you would like help making a wise decision when purchasing life insurance, return to Benzinga to find insurance guidance and financial advice.
Frequently Asked Questions
Do people buy life insurance online?
People are buying life insurance online in increasing numbers because of the convenience and ability to comparison shop. You should remember that some companies will require a physical examination before you can complete the final purchase of your life insurance policy.
Can I buy my life insurance for my parents?
Yes. You can purchase a life insurance policy for your parents or any other adult willing to do so. If the person dies, you can use the policy to pay for things like funeral costs, medical bills or estate taxes.
Benzinga crafted a specific methodology to rank life insurance. To see a comprehensive breakdown of our methodology, please visit our Life Insurance Methodology page.