The Benefits of Buying Life Insurance Online vs Through an Agent

 

Life insurance is a contract between you and an insurance company that pays a lump sum of money to your beneficiaries if you die while the policy is active. Life insurance is important because it can provide financial security and peace of mind for your loved ones in case of your untimely demise. It can help them cover your funeral costs, pay off your debts, replace your income, and fund your children’s education.

There are two ways of buying life insurance: online or through an agent. Online buyers can compare quotes, apply, and manage policies on their own using websites or apps. Agent buyers can get advice, guidance, and assistance from a licensed professional who works for or with an insurance company.

In this article, we will explore the benefits of buying life insurance online vs through an agent. You will learn how buying life insurance online can offer you:

• Convenience and speed
• Cost savings
• Transparency and control
• Flexibility and customization

Let’s dive in!

Benefit 1: Convenience and Speed

One of the main benefits of buying life insurance online is that it is more convenient and faster than buying through an agent. Online buyers can shop for life insurance anytime, anywhere, without having to schedule appointments, make phone calls, or visit offices. They can also compare quotes from multiple insurers in minutes, apply for a policy in a few clicks, and get instant approval or feedback.

Online buyers can also manage their policies online without having to contact an agent or wait for paperwork. They can access their policy details, make payments, update their information, change their beneficiaries, or cancel their policy online. They can also get online support from chatbots or customer service representatives if they have any questions or issues.

Some online tools and platforms that make buying life insurance online easy and accessible are:

• Policygenius: A website that lets you compare quotes from over a dozen top insurers, apply for a policy online, and get expert advice from licensed agents.
• Forbes Advisor: A website that lets you compare quotes from multiple insurers, learn about different types of policies, and get tips from financial experts.
• HDFC Life: A website that lets you buy term life insurance online with no medical exam, customize your coverage and benefits, and get discounts for healthy habits.

Benefit 2: Cost Savings

Another benefit of buying life insurance online is that it can be cheaper than buying through an agent. Online buyers can save money by avoiding commissions, fees, and markups that agents might charge or add to the premiums. Since insurance companies don’t have to pay commissions to agents, they can offer lower rates to online customers.

Online buyers can also save money by shopping around and finding the most competitive rates. They can compare quotes from different insurers and choose the best policy for their needs and budget. They can also take advantage of online discounts and offers that can lower their premiums.

Some online discounts and offers that can lower the premiums for online buyers are:

• No-medical-exam discount: Some insurers offer lower rates to online buyers who qualify for a policy without taking a medical exam.
• Bundle discount: Some insurers offer lower rates to online buyers who buy more than one type of insurance from them, such as home and auto.
• Loyalty discount: Some insurers offer lower rates to online buyers who renew their policy or refer their friends or family.

Benefit 3: Transparency and Control

A third benefit of buying life insurance online is that it can provide more transparency and control than buying through an agent. Online buyers can access more information, options, and features directly from the insurer without relying on an agent’s opinion or recommendation. They can also make their own decisions without being influenced or pressured by an agent’s sales pitch or commission.

Online buyers can also access more resources and reviews that can help them make informed decisions. They can read about different types of policies, benefits, riders, exclusions, limitations, etc. on the insurer’s website or blog. They can also read customer reviews, ratings, testimonials, etc. on third-party websites or platforms.

Some online resources and reviews that can help online buyers make informed decisions are:

• NerdWallet: A website that provides unbiased information, advice, and tools on various types of insurance, including life insurance. It also compares and ranks different insurers based on their financial strength, customer service, and claims satisfaction.
• Clearsurance: A website that collects and analyzes customer reviews, ratings, and feedback on various insurance companies and products. It also provides insights and tips on how to choose the best insurance for your needs.
• Liberty General Insurance: A website that offers comprehensive and affordable life insurance policies online with no medical exam, no paperwork, and no agent involvement. It also provides online support, claim settlement, and policy renewal.

Benefit 4: Flexibility and Customization

A fourth benefit of buying life insurance online is that it can offer more flexibility and customization than buying through an agent. Online buyers can adjust their coverage, term, and benefits according to their needs and preferences without having to consult or negotiate with an agent. They can also switch to a different policy or insurer if they find a better deal or service.

Online buyers can also choose from a variety of policies and riders that can cater to different situations and goals. They can find policies that suit their budget, lifestyle, health condition, family size, etc. They can also add riders that enhance their protection, such as accidental death, critical illness, disability income, etc.

Some online policies and riders that can cater to different situations and goals are:

• Term life insurance with return of premium: A type of term life insurance that refunds all the premiums paid if the policyholder survives the term. It is ideal for people who want to get their money back if they don’t die.
• Whole life insurance with cash value: A type of whole life insurance that accumulates cash value over time that can be accessed through loans or withdrawals. It is ideal for people who want to build savings or supplement their retirement income.
• Accelerated death benefit rider: A rider that allows the policyholder to receive a portion of the death benefit in advance if they are diagnosed with a terminal illness. It is ideal for people who want to cover their medical expenses or other end-of-life costs.

Conclusion

Buying life insurance online vs through an agent has its pros and cons, but buying online can offer many benefits that outweigh the drawbacks. By buying life insurance online, you can enjoy:

• Convenience and speed: You can shop for life insurance anytime, anywhere, without having to deal with agents or paperwork. You can also compare quotes, apply, and manage policies online in minutes.
• Cost savings: You can save money by avoiding commissions, fees, and markups that agents might charge or add to the premiums. You can also shop around and find the most competitive rates and discounts online.
• Transparency and control: You can access more information, options, and features directly from the insurer without relying on an agent’s opinion or recommendation. You can also make your own decisions without being influenced or pressured by an agent’s sales pitch or commission.
• Flexibility and customization: You can adjust your coverage, term, and benefits according to your needs and preferences without having to consult or negotiate with an agent. You can also switch to a different policy or insurer if you find a better deal or service.

Don’t wait any longer. Start buying life insurance online today and find your best policy in minutes. You can use websites like Policygenius, Forbes Advisor, or Liberty General Insurance to compare quotes from top insurers and buy policies online with no medical exam, no paperwork, and no agent involvement.

Thank you for reading this article. We hope you found it informative and helpful. If you have any feedback or questions, please feel free to leave a comment below or contact us.