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Where to Buy Life Insurance: Online vs. In-Person
Life insurance is a significant investment that can provide financial security for your loved ones in the event of your unexpected death. But with so many options available, it cannot be easy to decide where to buy it. In this article, we’ll explore the advantages and disadvantages of purchasing life insurance online versus in person, so you can make an informed decision that meets your needs.
- updated last on April 27, 2023
Quick Page Guide:
- Buying from an experienced life insurance broker
- Buying life insurance from an affiliated or captive agent
- Independent life insurance brokers vs. agents
- Buying life insurance directly from the insurance company
- Buying life insurance from a fee-based financial adviser
- Other avenues for buying life Insurance
- Where would be the best place to buy life insurance from?
- FAQs
Buy life insurance online instantly
Buying life insurance online can be a quick and convenient option for those who want coverage without the hassle of meeting with an agent in person. Many online providers offer instant quotes and the ability to purchase a policy within minutes. However, it’s essential to research and ensure that the provider is reputable and provides the coverage and benefits you need. Additionally, some people may prefer the personalized guidance and advice an in-person agent can provide. Ultimately, deciding where to buy life insurance depends on your preferences and needs.
How to buy life insurance is a relatively easy task, especially nowadays. Although we are restrained from going outside, there are ways to scout for the best life insurance policies. Learn more about each option and why getting a broker is best for you.
Once you have decided that you need to buy life insurance, one of the initial steps is to look for the right place to buy one. There are many ways to get life insurance: you may get your life insurance rates online, then contact an online broker, an affiliated agent, directly from an insurance provider, financial adviser, or your employer or credit union.
No matter where you want to buy a policy, your state regulates all premiums, and the price is the same. However, quotes may differ according to different factors, such as age, health status, lifestyle, and more. Once you go through the underwriting process and pass, your premium is the same, no matter where you get your application form.
Moreover, the overall experience may differ on where to buy life insurance. For instance, brokers and independent agents may offer more impartial advice than others, while some can provide more opportunities for you to acquire connection and convenience. Continue with the rest of the article to determine which avenue is right for you.
Important Takeaways:
- The best place to buy life insurance depends on your priorities.
- Brokers work independently and offer various policies from different insurers, while agents work for a specific insurance provider.
- Purchasing directly from the life insurance companies may limit your options and chances to compare quotes.
- Be cautious of professionals offering expensive policies more than what you need.
Buying from an experienced life insurance broker
The beauty of going to an independent broker is that they are not confined to just one insurer. Therefore, they have the proper knowledge to advise on the best life insurance companies offering affordable life insurance according to your personal needs.
They will hear your story and background to know your health and financial standing. Working with them allows you to get insurance quotes online from multiple insurers and select the best life insurance policy that suits you best.
Advantages and disadvantages of buying through a life insurance Broker
Each life insurance provider has guidelines for a health condition, family history, and applicant’s financial condition. The best and most experienced broker may help you to identify a specific insurer to match your profile.
However, dealing with an independent broker may add time to the overall application process but well worth it if you can get life insurance and save some money.
Pros:
- An expert broker is well versed with each insurer, so they can recommend one that suits your needs and profile.
- Also, a broker can shop around to look for other options if you failed with the underwriting process or the premium offered is higher than the quotation.
- A broker can follow up on the status of your application on your behalf, especially during the underwriting process, which is the most critical part of the application. They can keep you updated on the progress as well as delays.
Cons:
- Some brokers are more knowledgeable than others, so you must find the right one to get the support you need.
- If you have many risk factors, then an insurance broker may take a little longer to compare quotes from diverse insurance providers.
Best whole life insurance
When buying whole life insurance online, there are several reputable companies to choose from. Some of the best options include Policygenius, Coach B. Insurance, and Ethos. These companies offer competitive rates, accessible online applications, and quick approval processes. However, it’s essential to do your research and compare policies and prices before making a decision.
Term life insurance
When buying term insurance, there are pros and cons to both online and in-person options. Online options, such as Policygenius and Haven Life, offer convenience and the ability to compare policies and prices easily. In-person options, such as working with an insurance agent, allow asking questions and receiving personalized advice. Ultimately, deciding where to buy term insurance depends on your preferences and needs.
Life insurance quotes
When shopping for life insurance, getting quotes from multiple providers is essential to ensure you get the best policy for your needs and budget. Online options make it easy to compare quotes from various providers simultaneously, while in-person options may require more time and effort to gather quotes from different insurance companies. Remember that the cheapest policy may not always be the best option, so consider each policy’s coverage and benefits before deciding.
Compare the market, right here.
Coach B. saves you up to 60% by comparing the top-rated companies on our quote and apply platform.
Buying life insurance from an affiliated or captive agent
Affiliated agents or captive agents are those who promote and sell products limited to insurance providers where they are working. These agents are working alone inside a small office selling different policies from selected insurance companies.
Advantages and Disadvantages of an Affiliated Agent
These agents sell policies from a limited number of insurers, so they know the policy very well. They can recommend policies according to the insurer they work on but may offer you higher premiums. It is because they benefit from the commission from policies sold.
Pros:
- You may be more comfortable sharing personal information from these insurance agents, especially if you know them.
- These agents are well versed in each company’s guidelines and timelines, making the process shorter than other options.
Cons:
- These agents may only offer policies from the companies where they are affiliated. You might miss out on other great opportunities or better deals from different insurers.
- Affiliated agents are being paid base on commission. It means that they offer expensive policies to earn more commission. Therefore, you might end up buying a costly policy than what you need.
Independent life insurance brokers vs agents
A survey from LIMRA shows that around 89% of life insurance policies are sold by either brokers or agents. Most of the time, many need clarification on brokers and agents, but distinguishing them is vital. For instance, we at Coach B are independent brokers working with diverse insurance providers.
We are selling policies from multiple insurers, so we only work on behalf of our customers. On the other hand, affiliated agents are hired by one or more insurers to promote and sell their insurance products. They are working for the benefit of the insurance companies with which they are affiliated.
Compare and buy life insurance
Buying life insurance directly from the insurance company
Mainly, insurance providers sell their life insurance policies through brokers and agents, but some may offer a direct sale. You can directly contact the insurer to apply and buy a plan from them. However, it might seem like a wise move, but using this option can leave you with minimal choices.
Advantages and Disadvantages of buying life insurance direct from the Company
Life insurance providers may give you the most accurate information and straightforward answers to your inquiries about each of their policies. It is better to choose a well-known insurance company. You may not acquire the best options from company representatives as they may offer the most expensive policy for their benefit.
Pros:
- It is possible to acquire quick and accurate answers about their policy.
- You may be familiar with the company’s name, so you feel confident about getting a policy from them.
Cons:
- The policy you get directly from the company may not be the best option for your lifestyle, financial condition, and health status.
- Company representative’s number one priority is the benefit of the company more than the client, so they can lead you to purchase a costlier policy that you do not need.
- In case your application is declined or ends up with a higher premium than what was quoted, you need to start the process from the beginning with another insurance company.
Buying life insurance from a fee-based financial adviser
There are licensed financial advisers that can help you get the right policy according to your needs. However, some of them might not be insurance experts.
Advisers are usually working with selected insurers to promote and sell their products. They may integrate a policy into your financial plans.
Advantages and Disadvantages of Buying through a financial adviser
The good thing about getting a financial adviser’s service is that they can suggest options that fit your budget and current financial standing. However, according to your profile, they need to be more experts in identifying the most affordable policy.
Best financial strength rating company structure
When researching life insurance providers, it’s essential to consider their financial strength rating. This rating reflects the company’s ability to pay claims and remain financially stable. Several companies provide financial strength ratings, including A.M. Best, Standard & Poor’s, and Moody’s. Each company has its rating system and criteria, so it’s essential to research and compare ratings from multiple sources. Choosing a provider with a solid financial strength rating can give you peace of mind knowing that a financially stable company backs your policy.
Pros:
- They are aware of your financial goals and condition, so they provide sensible suggestions tailored to your financial plans.
Cons:
- Financial advisers are not experts in life insurance, unlike brokers. Therefore, they may not suggest a policy that suits your health status and other lifestyle concerns.
- They are also selling policies on a commission base and can offer higher premiums for their benefit and not yours.
Other avenues for buying life Insurance
Aside from what was written above, there is another way to acquire a life insurance policy. It is from a specific organization and company.
It is the same way as purchasing directly from an insurer. Similar advantages and disadvantages apply unless your organization is affiliated with various insurers, which is very rare.
Employer-sponsored plans
Employers usually offer group life plans to their employees. If the employer subsidizes half or the whole premium, then opt-in is not harmed. However, if you know you need reliable life insurance, it is better to get your policy.
Most of the time, group policies have lower coverage amounts than personal policies. Above all, you cannot take your approach with you once you leave the company.
Some organizations
An organization may be affiliated with an insurer. For instance, Walmart is selling life insurance now. The company offers policies from two different insurers so you may need more affordable options.
Credit Unions
If you are a credit union member, you may acquire a policy from them if they offer one. However, you may only choose premiums from a single company. As a result, there is a danger of paying more for a policy than you would if you compare it to other insurers.
Where to buy life insurance from?
Suppose you want to be a wise shopper for an easy life insurance policy. In that case, getting the service of an independent online broker who is knowledgeable and experienced with multiple insurers that can help you buy life insurance online is the best option for you.
Brokers can provide the latest information to help you thoroughly search for the most affordable premium according to your personal needs, lifestyle, and profile.
Moreover, deciding how to choose life insurance is better to focus on a particular part of the whole experience. If you need someone who knows the in and out of the process of purchasing a policy, then you need a broker.
If you want someone who can manage your financial plan and which policy to fit in, then a financial adviser may be the right person for you. If your top priority is practicality, you may contact an insurance provider or an affiliated agent.
Frequently Asked Questions
Where is the best place to get life insurance?
Where is the best place to get life insurance?
The best place to get life insurance depends on your needs and preferences. It's essential to compare quotes and policies from multiple companies before deciding.
Can you get life insurance at a bank?
Yes, many banks offer life insurance policies through partnerships with insurance companies. However, it's essential to shop around and compare rates and coverage options before choosing a policy from a bank. Working with an independent insurance agent who can provide unbiased advice and access to a broader range of policies may also be beneficial.
What to look for when buying life insurance
When buying life insurance, it's essential to consider factors such as the type of policy, the coverage amount, the premium cost, the insurer's financial strength and reputation, and any additional riders or benefits that may be available. It's also essential to review and compare policies from multiple insurers to ensure you're getting the best coverage for your needs and budget.
About Coach B.
After starting his financial career with Phoenix Home Life Insurance Company back in 1992, Scott decided he wanted to provide people with an easier and more enjoyable way to buy life insurance. That was the start of Coach B. Life Insurance, whose mission is to be transparent, honest, and helpful to customers — without ever bugging or pushing them.
In the years since then, he has worked tirelessly to improve the process of shopping for insurance. His goal is to make sure that everyone who comes to Coach B. — whether they end up buying a policy or not — has the best possible experience.
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