Advantages of Purchasing Term Life Insurance Online
When purchasing term life insurance, you have two essential options. The first option is to purchase your term life insurance through a broker in your local area and the second is to purchase your term life insurance online. Because term life insurance can be purchased online, the number of online policy purchases has risen dramatically over the past few years. There are both advantages and disadvantages to purchasing term life insurance online, both of which will be discussed below.
Advantages of Term Life Insurance Quotes
The main advantage to purchasing term life insurance online is the fact that it is simple to do. Because there is no cash value for term life insurance, it is very simple to comparison shop until you find the right policy for you. There are a variety of different web sites that will compare as many as several hundred different term life insurance policies for you, which makes it extremely easy for you to take advantage of policies that otherwise would have been difficult to find.
By purchasing your term life insurance online, you will be eliminating sales people and that will try to convince you to buy products that may not have your best interest at heart. You do not need more expensive policies, so avoid dealing with someone who will try to sell them to you.
Disadvantages of Term Life Insurance Quotes
The main disadvantage to purchasing your term life insurance online is that there is generally no “in person,” personal service. It may be difficult to find someone who you feel comfortable talking to when it comes to having issues addressed and questions answered. Some private agents are able to offer special deals or rates to their customers, but you can lose this extra advantage if you do your comparison-shopping online. There are however, some online brokers that offer exceptional customer service via telephone. For example, www.equote.com offers the best of both worlds.
When you purchase your term life insurance online or do a term life insurance quote comparison online, there is rarely anybody available to walk you through the step by step process, which means you may have difficulty determining which coverage is best or which term life insurance you want to purchase. There are three different types of life insurance, decreasing term life insurance, annual renewable term life insurance and level term life insurance and choosing the right type is imperative if you want to get the most out of your term life insurance plan.
Decreasing Term Life Insurance – This type of term life insurance policy is set up for a specific number of years, typically between ten and thirty. The face amount of the policy then decreases over that period of time.
Annual Renewable Term – This type of insurance policy has the same amount of death benefit over the years, but the rates increase in lieu of the face amount of the benefits decreasing. The insurance also has to be renewed each and every single year. This is the most temporary of all forms of life insurance, and is only really useful when situations change often in your life.
Level Term – This is the most common type of term life insurance policy. It has a level death benefit and comes with a fixed rate, but only for a specific allotment of time. You should be able to renew the policy once the term is up, if you desire to. Premiums tend to be low with this type of term life insurance policy, especially when the policy is purchased when the insured is young.