Is the Process of Buying Life Insurance Online Easy? Is it easier to get coverage from the top life insurance companies? It’s possible depending on how a company processes business. Do they only accept paper application or do they use technology?
Since the creation of the internet, our lives have changed significantly. You can, pretty much, run your entire life online. With the development of the smartphone, it has provided us with more access to information and services than at any point in history. You can make investments, order food, buy your clothing, and even find the right life insurance for your needs.
Is the process of buying life insurance online easy?
No, not the entire process- but most of it you can. You can apply and complete the majority of the life insurance process online and/or over the phone in just a few steps.
You can simply get the process going very quickly from your computer in your home or office.
Figure out what your life insurance needs are
Before shopping for life insurance online, you need to know how much coverage you are looking for and for how long. You can grab your calculator and perform a little basic math or by clicking how much life insurance do I need?
It will ask a step-by-step questionnaire, calculate the numbers, and come up with the policy benefits and terms that are right for you. Once that is done, you are ready to start your comparison shopping for policies from the best life insurance companies.
Next, get and compare life insurance quotes
Knowing how much life insurance coverage you need is only one step. Not all life insurance companies charge the same for similar policies and each company has their own features, good points, and bad points.
You could spend a week or so, calling all the insurance companies, get quotes, write down all the information that has been provided (and hope you wrote everything down), try to remember which company offered an accelerated death benefit rider, call them back a second time to double check all this information. The bottom line, do you have the time to go through all of this stuff?
The best way to handle this information is doing it online. You can get quotes side-by-side in order to compare them very quickly. You can check out a life insurance company’s ratings and reviews to decide which companies will be good to work with which ones will not. You will easily see which companies have the best financial ratings as well. Speak with independent life insurance experts at Life Insurance Blog to answer all your questions and/or concerns.
Submitting the application
Once you have found a policy that works for you, you’ll fill out some additional information including more in-depth health and financial information. This can be completed using our simple online SnapApp or over the phone. You will have to provide your Social Security number and your Driver’s License Number.
Once you’ve completed this step, click the button to submit your application. For right now, that’s all you have to do. Later on, you may have to have a phone interview and take a medical exam unless the insurer does not require an exam.
In the meantime, celebrate that you are now well on your way to protecting your family’s future.
Your possible medical exam
This is actually a very easy exam. A paramedic will come out to your home or your office and give you a very basic physical. That said, it will take about 20 minutes of your time, depending on the carrier requirements. They’ll take your height, weight and a few other measurables. You will probably have to provide a little blood and give a urine sample.
That said, how would you go about taking a medical exam over the internet anyway? You can’t right now because the technology isn’t there. However, companies do rely on your medical records vs in lieu of a medical exam for some accelerated underwriting products.
What is accelerated underwriting?
This is a way to accelerate the underwriting process for the life insurance policy.
It takes out the medical exam and is replaced by a request for an Attending Physician Statement (APS). You do not have to do anything, the life insurance company will use a number of third-party data sources including a prescription drug database check, get a copy of your motor vehicle report, and check with the Medical Information Bureau.
After pulling this information, they will get a good picture of how much of a risk factor you might be in order to insure you and how much you will have to pay for your premium.
By pulling your records instead of a physical exam, the company can take weeks off the underwriting procedure.
That said, realize that there are policy and health restrictions that will not let you use an accelerated underwriting. The upside is, more and more insurance companies are offering this option to their applicants so it’s really worth checking into.
Application steps you can’t do online
Applying for life insurance online has really come a long way over the past few years. There are certain steps that you must deal with on the phone, in person, and through the mail.
The phone interview
Once we send off your application to the life insurance carrier, you’ll be contacted by a company representative for you phone interview.
Yes, I know. It would be great to be able to do everything online, but now you have to spend a little time over the phone. There’s no getting around this step. It is mandatory that you talk to their representative over the phone.
The average phone call is approximately 30 minutes.
This is a short phone call where you will answer some questions regarding your basic health and health history. The underwriter has to get a better idea of your situation regarding your health and lifestyle. These questions will be very much like the questions you were asked when filling out the application.
It’s how they are able to give you quotes that are close to what the final policy will cost you. They will ask many of the same questions as the insurance company does. So, if you already answered these questions, why do you have to again?
Answering these questions again makes the answers official. It’s an important step because it will help you finally get your life insurance policy premium rate. Keep in mind, be very honest with your answers if there are discrepancies, you could be denied the policy!
The required paramedical exam
If you are unable to qualify for a No Exam or Simplified Issue life insurance policy, you’ll be required to take a medical exam.
There can be many reasons why it would be required. For example, you may have health condition that disqualifies you from a No Exam life insurance option.
The medical exam is a little inconvenient, but it only takes a few minutes to complete and your agent will arrange everything. There is no cost to you- except for your time.
The medical exam can be scheduled at a time and place of your convenience such as your office or home.
It’s that simple.
Finalizing your life insurance policy
The life insurance carrier now has your completed application, phone interview and exam. It shouldn’t take very long once these are all received. The underwriting process begins and your approval should take a few weeks to get the final decision or approval.
If you are relatively healthy, you shouldn’t have difficulty getting an approval for the quoted premium you received from your agent. That’s life insurance 101. However, if you are rated up or denied, we’ll reach out to you and explain all your options and help you secure the best policy available.
Of course once you’re approved, your policy needs to be finalized with signatures and payment method.
You’ll be required to sign your policy in order to make it effective and in force. Many life insurance companies use e-signatures that allow you to sign and finalize your policy online.
Once your policy is signed and paid for- you’re covered.
Congratulations your future is now protected! It’s time to relax.