Insurance companies offer competitive rates online to attract new business. Like all business models they are looking constantly to save costs, increase competitiveness and attract new customers. In the old days, you would contact your bank or broker and they would recommend a policy or insurance company.
No with the growth in online business and the cost savings this promotes, insurance companies have joined the rush to get online.
There are still brokers or banks you can approach, however, it is a good idea to get an idea of costs of terms life insurance prior to meeting them.
Ok so why is it cheaper to buy term life insurance online, why can't you get these prices from your insurance broker? There are two reasons for this; the first reason is your cutting out the broker and saving on his or her commission, that sounds good but it's not always a good thing since they can advise you of the fine print, restriction, and usually setup the medical exam for you.
If that doesn't bother you, then on with the second reason why life insurance is cheaper online. Costs are the answer! There is no bricks and mortar, no office, and maybe a call center to answer your questions if you are having trouble online. In the end the life insurance company truly is reducing the costs and passing it on to you, but is there a catch?
No, but there is of course the fine print, before you purchase if you talk with an agent or even a sales rep over phone you can get details you might have missed with your online life insurance quote. Yes the service and policy is available online instantly but you need to take the time to look at what you're buying and read EVERYTHING to make sure you understand what you are purchasing, what it covers and of course what it does not.
Many people are confused between these two terms. Term life Insurance provides insurance for a limited period of time. This is the term of the policy and gives the insurance its name. At the end of the term the policy ceases and the insurance has finished.
Whole life or Permanent Life provides life insurance for the whole lifetime of the policy holder(s). Because of this it is more expensive when compared to Term Life Insurance. However it should also be considered that depending on the whole life policy taken out, there maybe a cash value building up that can be withdrawn at a later date if required.
Certain Insurance Companies offer enhanced rates for different products. It is therefore a must to obtain different quotes to compare prices.
They are many people who are in need of life insurance, but for one reason or another don't want to go through the trouble of a medical exam, or can't fine the time to attend one. This should be no reason to put you off obtaining a quote, as many companies will provide life insurance without the need for a medical exam