How to Buy Life Insurance Online

iQuanti: Investing in life insurance can be an excellent financial decision if you want to protect your loved ones, and with a few steps you can get a policy that works for you. You can get a life insurance policy online with almost no need to leave the comfort of your own home, aside from a medical exam in some cases. This article will walk you through how to buy life insurance online, from picking a policy type to signing the final paperwork.

1. Choose a policy type

First, you should decide whether you want term life insurance or permanent life insurance. Term life insurance tends to be much cheaper but only lasts a fixed amount of time, usually 10 to 30 years. 

Meanwhile, many permanent policies cost more but last for life. Plus, they offer a cash value growth component. Part of each premium goes into the cash value, which grows tax deferred. There are several types of permanent policies that may be at your disposal:

• Whole life insurance: Whole life insurance comes with fixed premiums and a death benefit. The cash value grows at a fixed, guaranteed rate.
• Universal life insurance: With universal life insurance, you'll have an adjustable death benefit and premiums. The cash value grows based on current interest rates, and you might be able to pay premiums with it.
• Final expense insurance: This type of life insurance doesn't require a medical exam and comes with a small death benefit your beneficiaries can use to cover funeral, burial, and end-of-life expenses. Premiums are typically affordable.

2. Determine your coverage needs

Your coverage needs depend on your current income, expenses, debt, your life insurance budget, and the number of beneficiaries you have. For example, if you have no children in the house and don't have many debts, you may not need as much coverage. On the other hand, if you have several children and large loans, like mortgages and auto loans, you may want to look for a higher death benefit to ensure your family is covered.

3. Shop around for quotes

Insurers may offer different rates and terms for the same policy. Shopping around with multiple insurers and getting several quotes is vital to finding the best rates on the coverage you need, lowering the cost of your life insurance.

3. Gather your documents and apply

Now that you've gathered quotes, you can choose one that works for your budget and needs, gather your documents, and apply. Some documents and information it may be helpful to have on hand include:

• Proof of identity (such as driver's license, state ID, valid passport, or birth certificate)
• Social Security number
• Proof of occupation/income (pay stubs, Form W2s, employment verification letter)
• Net worth (documents proving ownership of assets like home, vehicle, and savings and investment accounts)

4. Schedule and take a medical exam if necessary

If you got a traditional term or permanent life insurance policy, you may need to take a medical exam for the insurer to underwrite your policy. The insurer will give you instructions for scheduling and attending the exam.

Once you complete the exam, the medical examiner will send your results to the insurer for underwriting. This process could take a couple of weeks, so you'll simply wait until your insurer contacts you.

5. Sign the paperwork and purchase your policy

Once underwriting is complete and your policy is approved, your insurer will reach back out with your monthly premium amount and other terms. If you agree to the policy terms, you can sign the paperwork online. You'll also make your first premium payment to officially purchase and start your life insurance coverage. Going forward, you may make a premium payment every month or year.

Get life insurance online from the comfort of your home

With so many insurers online today, it's easy to get a life insurance policy from the comfort of your own home. Once you pick a policy type and figure out your coverage needs, the rest of the process is straightforward. Shop around for quotes and pick the best, gather your documents and apply, take the medical exam if necessary, then sign the paperwork and pay your first premium. Follow these steps, and before you know it, you'll have a life insurance policy that fits your needs and budget.

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