With the Internet constantly at our disposal, buying online life insurance may seem like a fantastic idea.
It offers us convenience and ease, but there are some precautions that you’ll need to take.
While the questions you should ask may not differ much from when you purchase “regular” life insurance, there’s a different angle you need to take. When purchasing online, you likely aren’t dealing with a person face-to-face, which may mean some issues don’t get addressed.
Make sure all your worries are at ease with this list of questions.
What happens if my premiums are too high?
Typically, the answer to this question is pretty straightforward. Just like on other types of policies, if you stop paying your premiums you’ll no longer be covered.
However, life insurance is a little bit different. Typically, that’s how it applies to term policies. Permanent policies may be different.
When it comes to online life insurance, it can be difficult to determine the different types. Make sure you research everything before you purchase, and check with your policy holder to get a real answer.
What can I expect from my policy?
Just because you’re purchasing your policy online doesn’t mean that it will perform the same way as other policies.
Different policies offer different things and perform differently.
Make sure you understand the type of financial return you’ll be getting, and whether or not your employer will be able to invest, prior to purchase.
How long should my policy be active?
There are two different types of life insurance: permanent, and term.
If you’re going for a permanent life insurance policy, it will be active for your entire life. A term will be active for a set amount of time.
Before you purchase life insurance online, definitely ask yourself or your potential agent how long they recommend your policy be active for.
It’s a good way to determine the customer service level of your company. If they’re pushing you to a more expensive option, they may not be the provider for you.
How do you know how much insurance I need?
Sometimes, online life insurance providers don’t operate that much different than those offline.
There’s a chance, however, that they calculate their benefits differently and will advise for different amounts.
Make sure that you and your potential provider are on the same page when it comes to benefits, and what assets and obligations they take into account.
Online life insurance: ask the right questions
When it comes to life insurance, you want to make sure you’re getting the best and most appropriate policy, regardless of cost. Don’t necessarily go for the cheapest policy with the lowest premium.
Before purchasing life insurance online, you’ll need to make sure that all your fears are set to rest. Don’t be afraid to ask your potential policyholder any nagging or difficult questions you have.
When purchasing anything online, life insurance included, some things get buried in fine print. Make sure you bring that to light to ensure that you’re making the right choice for you.
Have you previously purchased insurance online? Share your experience with us in the comments section below!