January 15th, 2020 | Updated on June 28th, 2022
Like every other consumer product on the market, there’s a right and wrong way to purchase life insurance. The smart strategy involves a time commitment and a dedication to viewing all the available data before making a decision.
Wise consumers compare rates, check out the history of carriers, find out about features that apply to their particular situation, search online reviews, and speak with agents before purchasing a life insurance policy. Here’s an overview of what to do if you decide to purchase a policy online.
1. Compare Rates and Features
The primary goal of any consumer should be to compare policy features and premium rates. At the early stages of your search, take time to make a list of premiums and key aspects of the products that interest you.
Remember to base your final decision on various factors, not just price. In fact, some people give more weight to the reputation of the carrier than to premium amounts. This is especially true when premiums are not too different.
2. Research the Carriers
Spend at least an hour reading about the top carriers. Attempt to focus your search on the best-rated companies. That way, you’ll be more assured of getting a high-quality policy from a trusted seller.
The internet is filled with consumer reviews of everything from air fryers, to automobiles, so you can easily find opinions on carriers. There’s no way you’ll be able to read every insurance review, but it pays to spend time on some of the better websites and check out a few dozen reviews about products you’re considering.
Don’t fall into the trap of just reading reviews on a single site. Choose two or three of the better-known review sites and read up on your favorite carriers, their products, and their customer service profile.
3. Ask About Special Circumstances
Nearly every company’s website includes a section where prospective customers can ask questions like, “Is there a non-smokers’ discount,” “Can I purchase a small term policy for just a few years,” “Do you sell final expense products,” and more. This part of the website is your opportunity to find out key details about exactly what you want and need in a policy.
Consumers who want to sell a policy for more than the surrender value, but less than the death payout amount can take advantage of life settlements.
Not every carrier offers this type of arrangement, so be sure to inquire. Why should you ask? Many prospective buyers don’t think about life settlements until it’s too late.
They purchase a policy and only inquire later about the specific provisions. That’s why smart insurance shoppers ask about details like this before signing a contract.
4. Call Agents Directly
Once you have whittled your data down to a short list of favorites, phone agents directly and ask them your detailed questions.
This is a good way to find out what you need to know and to test-drive the agent’s ability to serve you. If you connect with a particular professional, consider a follow-up phone call during which you can really dig into the details of your needs.
