Life Insurance may be the last thing you should buy online. Find out the key reasons you need to talk with your local insurance agent before diving into Life Insurance.
Many of us shop online with gusto. It’s convenient, after all, and that convenience led to $289 Billion in online sales in 2012. According to one e-commerce market forecast, experts predict the number of U.S. online shoppers will grow to 175 million by 2016. While many are purchasing airline tickets, books, movies, electronics, clothing and home goods, some are buying financial products, including life insurance. But before you join them, consider these reasons to talk to your auto and home insurance pro first.
The Choices are Complex…
In general, life insurance comes in two basic options: whole life and term. Insurers sometimes refer to whole life policies as “permanent insurance” as they combine insurance coverage with an investment fund. The policy will pay your beneficiaries a fixed amount when you die, but part of your premium will also go into investments that can build cash value. You can then borrow against the cash accumulated in the investment fund.
Term insurance is a affordable life insurance policy without the investment component. When you buy term insurance, you’re buying coverage for a set time. Some term policies renew annually, and their premiums will steadily increase along with your age. Other term policies have fixed premiums for anywhere from 5 to 30 years.
And you have still more options. Universal life is term insurance combined with a money-market investment that pays a market rate of return. Variable life and variable universal life combine an insurance policy with investment funds tied to stocks or bonds.
The Right One Depends on Many Factors
Picking the right insurance product for your needs requires you to consider a number of factors. You’ll need to decide the amount of coverage you want to buy, the largest premium you can afford, your age, the ages of your beneficiaries, and more. Unfortunately, this process is more complex than what most online computer models can handle—which means you’re likely to find one-size-fits-all policies that are too big or too small but never just right.
For a policy tailored to your precise needs, one that integrates with your overall financial plan, your local insurance agent is really the only option. You’ll find the best choice of products (online clearing houses often offer term life insurance alone), and you’ll also benefit from your agent’s training and expertise. This means they’ll help you avoid buying too much coverage or a policy you don’t need and can even create a custom blended package using more than one type of life insurance product.
The Internet is definitely convenient, and you can utilize it to explore your insurance options ahead of time—as you might when buying a car. But when it comes to making a final life insurance choice and submitting an application, talk to your auto and home insurance professional first. Remember that cheap life insurance may not be the best life insurance for your needs. Your local agent will be able to assist you.
To find a quality Insurance professional near you, we highly recommend www.trustedchoice.com.
