Buy Life Insurance Online

Reader’s Question:

Buying life Insurance Online is more convenient for me than going to an agent. What are the disadvantages which I may not be aware of?

Carmen

Chicago IL

Some insurance companies offer policies only thru web while others sell policies by using an agent and using the web. When shopping for insurance using the web, the coverage is cheaper. You can also get your coverage faster. It is also more convenient than buying an insurance by going to an
insurance agency.

However, there are still drawbacks on purchasing life insurance online. There are insurance policies that do not provide a variety of policy features, which limits your options. This is because there are certain types of life insurance policies that are complex and will be more easily explained by an agent. Some of these more complex products are whole life insurance, variable life insurance, and variable universal life
insurance. The features of these products need to be explained further. Insurance products that you will find on the internet are policies that can be easily understood.

According Arthur Fliegelman from Moody’s, online life insurance providers should make their online services user-friendly if they want to increase their share in the market. The
service online has not given insurance clients the ability to do other insurance transactions like paying premiums and changing coverage and beneficiaries.

Buy Whole Life Insurance Policy Online

Reader’s Question:

What should I know before I make a decision whether I take accelerated death benefits or not?

Should I buy a whole life insurance policy online, or would that just be a waste of money?

Jan

New York, NY

Accelerated death benefits are few of the benefits that you can add when you have a whole or permanent life insurance. With accelerated death benefits, you can immediately access cash that can fund the accumulated expenses while you are seriously ill. The life insurance company makes it possible for you to collect part of your life insurance death benefits. You should note however that there are certain conditions when the life insurance company pays these benefits.
Before you make a decision on purchasing an accelerated death benefits, you need to consider whether the balance from your policy is sufficient to fund the final expenses for example. Some examples of these final expenses are burial and funeral expenses. Aside from this, you should also consider the impact of this benefit to your Medicaid eligibility since the receipt of payments from this life insurance benefits may be considered part of the income. Lastly, you also need to consider the tax implication although federal Government usually life insurance proceeds are usually exempt life insurance proceeds from tax.

Essential Tips For Buying Life Insurance Online

Readers Question:

Is it recommended that I buy life insurance online? What are the things that I should know about buying life insurance in general? Thanks!

Cristo

Baltimore, MD

Good question. Yes, it is definitely recommended that you buy life insurance online. In fact, the Web is fast becoming the most popular way for people to get life insurance coverage in Maryland, and everywhere else! Thanks to the abundance of life insurance portals – websites dedicated to life insurance coverage – that makes it possible for anyone to access the latest rates and offers in the market today.

Life insurance portals have also enabled people to better compare their options when it comes to life insurance plans, since information is instantly available and comes from a wider selection of choices. Unlike agents or independent brokers who usually have a very limited range of options, or would only choose to sell you what they can get the most commission out of, life insurance portals makes for a level playing field for everyone.

A few other things to keep in mind while looking to buy life insurance online:

1. With the plethora of offers and types of life insurance plans available, it would be wise to first know what kind of life insurance coverage best suits your needs. Term life insurance is temporary and pure life insurance coverage best for people who only need to be covered for a definite period (while paying mortgage or raising a family; for example), while Whole life insurance is more expensive but provides lifetime coverage and accumulation of wealth.

2. Buy while you are healthy. For women, it’s also recommended that you buy coverage before getting pregnant. Rates are at its most affordable during these times. Also, only buy life insurance if you have dependents.

3. Group life insurance coverage can actually be more expensive than individual life insurance plans. This is because high-risk members tend to push rates up for everyone.

4. Being a smoker can single-handedly make you pay life insurance premiums that are 3 to 4 times higher than average.

5. Living a healthy lifestyle is your best way to keep life insurance rates as low as possible. The less risk of you dying during coverage, the better rates you get.

Life Insurance Coverage Online

Reader’s Question:

I have two friends here in Tulsa, Oklahoma who are both insurance agents and they are pushing me to get life insurance. However, one is saying I should get term life insurance while the other says I should get whole life insurance. Can you tell me the pros and cons of each?

Jesse

Tulsa, OK

Hi there Jesse. I’m sure your friends in Tulsa, Oklahoma only mean well in offering you life insurance. Please do not succumb to either one just because of peer pressure. It is best that you fully understand the product that you are getting.

Of course each of them have their own strengths that they bring to the table. But you are the sole decider on which most suits your needs. The difference in whole life and term insurance are as follows.

First is the duration of coverage. Term insurance, as the name implies, will only give you coverage for as long as the duration of the policy. With whole life insurance, you will get coverage for the whole of your life assuming the policy is still in effect. That is, you are still paying your premiums regularly, or you have completed the premium payments.

Second, Whole life insurance gives cash values on a periodical basis depending on your policy and may even earn you dividends with certain insurance companies and will still give your beneficiaries a death benefit. On the other hand, Term life insurance will not give you any cash values at the end of the term. In short, if you do not die, you do not win with term life insurance because you get nothing back at the end of the term. Hope these will help you come to a decision.