How to Buy Life Insurance Online

Responsibly purchasing life insurance on-line requires the same preparation all other endeavors require. I recently purchased a policy and was quickly overwhelmed by all the available options. Since I’ve sold insurance as a telemarketer I knew where to start, and which questions to ask.

1.)Who are you purchasing for? On the surface the answer seems obvious. If you plan on purchasing for an elderly person who already has health issues you need to expect to find high rates and waiting periods. If the person has belonged to various organizations for a period of time, those organizations may offer options which are not available to the general public. AARP is one option that should be considered for people over the age of 50. If you are purchasing for children you may want to look at a whole life policy.

2.)Why do you need to purchase life insurance? Again the answer seems obvious on the surface; however the answer will determine what type of insurance to purchase. Whole life doubles as an investment tool. The premiums may increase as time goes by, but the money invested will grow creating either a nest egg, or a larger payout upon death. A term policy typically costs less and the rates are usually locked in. Money put into a term policy can not be retrieved if the insured does not die. This is the most significant difference between whole and term policies. Also, once the predetermined time period of the term policy expires the rates will change to renew the policy.

3.)Commerce on the Internet can be misleading. Start the initial search with a well known company, so you can learn about some of the policies available for your specific needs. A.M Best is likely the leading rater for insurance companies. If the company you are considering purchasing from does not have a rating from A.M. Best you may want to find out some background information on that company. A.M. Best uses a letter ratings code for the companies they rate. The more “A”‘s the better the rating. Also consider which payment options best fit your budgeting lifestyle.

4.)Keep yourself organized while shopping. Create one folder in your favorites list dedicated to the insurance companies you are investigating, so you can make all you comparisons on the computer prior to making a final decision.