Buying Term Life Insurance Online

Buying term life insurance online can save you money, time and a physical. What’s more, you can quickly and easily compare various quotes at your own convenience. There are a few things you should know first, before you type your name on the dotted line.

Get and Compare Quotes
Start by looking online for insurance companies that sell term life products. When looking for insurers to compare quotes, consider the track record of the company. Have they been around long? Do they come with a recommendation of a friend or co-worker?

Using a spreadsheet, enter the company name and website, the annual premium (for a monthly billing cycle, multiply the monthly premium by twelve), the number of years the policy covers, whether or not the dividends or PUAs can be withdrawn and whether or not there is a renew clause should no claim be filed against the policy.

Begin comparing the entries on your spreadsheet and eliminating those that do not meet your family’s needs. Terms too short or too long? Is the policy renewable after the full term has been met? Don’t be afraid to delete those that aren’t quite what you’re looking for. There are so many term life insurance products on the market you shouldn’t feel that you are “settling” for a particular plan or provider.

If you are down to less than 5 policies and/or providers, great! You can now narrow it down to just one by choosing the policy with the lowest premium per year. If you are faced with more than 5 to choose from, ask these questions:

Which are the ten least expensive policies? Keep just the ten most favorable policies.

Trying to avoid taking a physical exam? Purge all that require a medical examination.

Are the dividends of the policy automatically returned to the policy or do you have the option of withdrawing them? Delete all the policies that don’t offer a cash out feature.

Finally, it all comes down to money. You’ve short listed the best policies with the most flexibility and lowest premiums. Take the cheapest policy you’re left with. This is the best one for you.

Online Application Process
The online application process is pretty simple if you are prepared. Before heading to the provider’s or broker’s website, you’ll need to collect the following documentation and information:

Name, date of birth and social security number of all applicants

Driver’s license or state issued ID number and expiration date for each applicant over 14 years of age

Current and former addresses for each applicant for the past 10 years

A list of current medications, including over-the-counter and herbal as well as prescription, for all applicants

A brief description of all medical, psychological and emotional treatments for all applicants for the past decade

Date of last preventative medical tests (mammogram and pap smear for women, rectal and testicular evaluations for men)

Tobacco, drug and alcohol use histories for each applicant

Name and contact information of each applicant’s primary care physician

Name, date of birth, social security number and address of the primary and secondary beneficiaries

Name, date of birth, social security number and contact information of a trustee if one or more of the beneficiaries is under the age of 18

Once the insurance provider or broker receives your application, you may be required to submit to a medical exam and prove your identity by visiting a notary public. Remember, your policy is not in force until you’ve paid your premium and received confirmation of receipt from the insurance provider.

Be very wary of brokers or insurance providers that charge you an application fee without an explicit refund clause whereby they refund your entire fee should your application be denied. Even then, you may consider passing by any websites that require a fee – there are so very many that do not.