Ten years ago, purchasing something like a life insurance policy online may have seemed like a strange thing to do, but let’s face it, lots of things have changed over the past ten years, so much so, that many no exam life insurance companies can get you covered in minutes.
If you really think about it for a moment, what seems stranger now?
Shopping for life insurance online?
Or having someone come out to your home and try and convince you to complete a paper application right then and there?
If you ask us…
Shopping for life insurance online is the only way to go, particularly because you don’t have to put up with a “hard sell” from a door-to-door life insurance agent.
Just because it makes total sense to purchase life insurance online, there are also some tips you should be aware of to make the process that much better.
And one thing worth mentioning at the outset is that the best online life insurance rates can be had without having to take a medical exam.
This is why we wanted to take a moment and discuss what the process of purchasing a life insurance policy online will look like, as well as provide you with some tips on what you should be looking for when choosing the “best” policy for you.
Questions that will be addressed in this article will include:
- What type of online life insurance should I buy?
- What types of life insurance policies can be purchased 100% online?
Let’s dive right in!
What type of online life insurance should I buy?
It’s important to understand that while the process of buying a life insurance policy may have changed over the years, the actual process of qualifying for certain types of life insurance policies hasn’t.
Which means that…
While you may want to purchase a life insurance policy online, it’s possible that you still have to meet with a nurse examiner and complete the second half of your life insurance application in person, at either your home or office, to be able to qualify for coverage.
For this reason, we wanted to take a moment and discuss the three most common types of life insurance policies, so that you can get a better idea about which kind might be right for you.
Traditional term or whole life insurance policies.
Traditional term or whole life insurance policies are life insurance policies that will require one to take a medical exam to be able to qualify for them.
These types of life insurance policies have dominated the life insurance industry for decades and are what most folks will think of when considering applying for a life insurance policy in general.
You will be able to apply for a traditional term or whole life insurance policy online; ultimately, you will need to complete your application face to face with a nurse examiner.
These types of life insurance policies are good for those who either:
- Already have insurance in place and looking for a better price.
- Or have been diagnosed with a pre-existing medical condition that may prevent them from being able to qualify for a no medical exam or simplified issue life insurance policy.
Older applicants or those looking for more larger than a $1,000,000 life insurance policy may also benefit from applying for a traditional life insurance policy.
Simplified issue or accelerated underwriting life Insurance policies.
Simplified issue or accelerated underwriting term or whole life insurance policies typically bypass a medical exam. Rather, these types of insurance policies will rely more heavily on “other” sources of information about your health (which we will discuss in our next section).
Aside from this fact…
Simplified issue life insurance policies will generally be the same as a traditional life insurance policy with the exception that simplified issue life insurance policies will generally not exceed one million dollars in coverage.
These simplified issue life insurance policies are often a good choice for:
- Younger applicants with little or no health issues.
- Those without any existing coverage because approvals can often occur within 24 hours.
- Those looking to be approved quickly to meet a SBA loan requirement or a court decree (divorce, child support, etc…).
- Those who haven’t taken a medical exam in a while and aren’t sure what one might reveal about their current health.
Guaranteed issue life insurance policies.
Guaranteed issue life insurance policies are generally reserved for folks only looking to purchase a small amount of insurance coverage (typically $25,000 or less) to cover one’s final expenses.
These types of final expense and burial life insurance policies will not require one to take a medical exam or may not ask any health-related questions.
These types of online final expense insurance policies are often a good choice for:
- Older applicants who only need a small amount of insurance.
- Those with significant health issues who might not be able to qualify for coverage requiring health questions
- Current tobacco smokers who may not be able to afford a tobacco rate (most guaranteed issue life insurance policies won’t discriminate against tobacco users).
100% Online Life Insurance Policies
OK, so now that we’ve discussed some of the most common online life insurance policies and understand how they work, it’s easy to see that only simplified issue (no medical exam life insurance policies) and guaranteed issue life insurance policies can be purchased 100% online.
Simplified issue life insurance
- Typically ranging from $2,000 to $100,000 in coverage
- Ages 18-85 based on health status.
- Must be located in a sate where policy is sold.
Guaranteed issue life insurance
- Small coverage amounts (less than $25,000).
- Must be between 50-85 at the time of application (with most carriers).
- Must be located in a sate where policy is sold.
And all guaranteed issue life insurance policies will contain a graded death benefit, which will limit when your life insurance policy will begin to cover you for natural causes of death (typically 2 to 3 years from your approval date).
Now, it is important to understand that…
Even though some applicants may be able to qualify for a life insurance policy that they could purchase 100% online, many will choose to have a nurse examiner come to their home so that they can have a better chance at qualifying for the best life insurance policy for them!
That is because, the more a carrier knows about you and your health status, the better price they can offer. So, if your goal is to get the lowest life insurance rates, sometimes is “pays” to take an exam.
But if your goal is to avoid as much human contact as possible and stay with 100% online life insurance, then simplified issue or accelerated underwriting policies is the way to go.
The good news is…
Here at IBUSA, we offer both 100% online life insurance polices as well as traditional life insurance policies as well so that when it comes time to help you decide which one might be best for you, we don’t have to try to “steer you” in one direction or another.
All we have to do is provide you with all of your options and answer any and all questions that you may have so that when you do decide to apply for coverage, you’ll know “why” you’re choosing the insurance policy that you are and “why” it’s your best choice!
So, what are you waiting for? Give us a call today, and let us show you want we can do for you!