Whether it’s ordering groceries on your phone, doing some daycare intel on your laptop, or scrolling through your iPad and getting caught up on your budget, it’s a fact that most of today’s to-do lists can get done online, on your own time and while in your pajamas.
The same is now true for purchasing quality life insurance. While in the past, buying a policy was a process that took place over several weeks, with paper applications, faxes, and back forth games of phone tag – just to wait and see if you’re approved for coverage. Now, there are affordable and dependable options for applying that can be done conveniently online.
Here, a guide to buying the right policy online for you and your loved ones.
Why should I buy life insurance online?
Buying life insurance online can be as simple as anything else you purchase from your phone or laptop. So, if it’s something that you or your partner has put off because you thought it would be a hassle… there’s no need to.
When buying a policy digitally, there are numerous tools available to help you understand your life insurance needs or how much a policy will cost. Once you’re ready to secure coverage, you can then easily apply online. Knowing that the process is simple, transparent, affordable and, sure, can be accomplished from your couch, makes it far less of a chore.
Of course, just because you’re applying for life insurance online, doesn’t mean you need to do it alone. For example, Haven Life offers real, human customer support via phone, email and live chat. And FYI, they’re lovely.
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“The easiest, simplest process for receiving term life insurance. And the premiums were the lowest quote.” —MichaelLearn more
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How will I know what type of life insurance coverage I need?
It’s important to make sure that your family would be adequately protected if you were to die. While life insurance may not be expensive, choosing a policy is a big decision. Therefore, it’s important to do some research before you buy one.
If you’re thinking about term life insurance policy, there are two factors you should carefully consider: the coverage amount and term length. (For more on why people love term life insurance, read here.)
Choosing a coverage amount
If you were to die during the policy’s term, how much money would you want to be paid out to beneficiaries? The amount of coverage offered through a policy is called the “face amount.”
While an online calculator can take the guesswork out of determining your coverage needs, a good rule of thumb is having coverage that’s 5 to 10 times your annual salary. So, let’s say you earn $70,000 a year. Based on this rule, $350,000 to $700,000 in coverage may be about right.
However, keep in mind five to 10 times your salary may not be enough if you have a hefty mortgage, other shared debts, or multiple children. A life insurance calculator will take into consideration your age, annual income, debts, the age of your spouse, and the age of your kids to help recommend the right amount of coverage.
Choosing a term length
The term length is the period of time that your life insurance policy will cover you for. This is also a number that influences the cost of your policy. Terms typically range from 10 to 30 years, and selecting a length of term depends on a host of factors, including the age of children and anticipated date that debts will be paid off. For example, if you kids are around five years old, then a 20-year term will cover your family until they are through college. Or, if you have 25 years left on your mortgage, then a 30-year term might be the right choice. We find that most Haven Term policyholders purchase a term length of 20-years.
Again, there’s no reason to guess when it comes to financial protection for your loved one. That friendly online needs calculator can help determine the best option for you, or we go into more detail here on how to choose the right life insurance policy term length.
How much does term life insurance cost?
The answer to that question is probably “a lot less than you’d think!”
The study notes that 80 percent of Americans guessed a 20-year, $250,000 policy would cost a healthy 30-year-old $400 per year. In reality, coverage would be closer to $150 per year. And Millennials, who tend to pay the least for coverage because of their age and health, guessed the same policy would cost as much as $600 per year. Meanwhile, a healthy 35-year-old woman can buy a 20-year, $500,000 Haven Term policy, issued by MassMutual, for around $19 per month.
The lesson here: Don’t make any assumptions. Rather, take a few minutes and get yourself a quote or two so you’re not left guessing.
What are the steps to buying a term life insurance policy online?
Purchasing a term life insurance policy online allows you the freedom and flexibility to calculate your needs and compare quotes on your own time, and to get an immediate decision on eligibility. In short: applying for life insurance online is simple and provides instant gratification that you did something great for your family.
Unlike traditional life insurance applications, Haven Life offers a shorter, streamlined version with context-sensitive help and plain, conversational language. (Don’t be surprised if you find yourself actually enjoying the process!)
Some of the information you can expect to need when applying online for fully medically underwritten term life insurance (what Haven Life offers) include: personal information, family health history, lifestyle information and medical history. The information is then verified through third-party vendors like the DMV, Medical Information Bureau, and Social Security Administration. However, with an online application, that verification and analysis can happen in near real-time, instead of over the course of several weeks. Hey, your time is precious.
If I buy a term policy online, do I have to take a medical exam?
Not necessarily. Depending on the type of coverage you’re seeking, as well as your age, you may not need a medical exam to finalize coverage. Typically, if you’re applying for fully medically underwritten term life insurance, you will need to take a medical exam, however, some Haven Term applicants under age 45 might qualify to instantly finalize coverage without one. Keep in mind: issuance of the policy or payment of benefits may depend upon the answers given in the application and their truthfulness.
As soon as an online Haven Term application is submitted, you’ll receive an answer as to whether or not a medical exam is required. If you do need a medical exam, you have up to 90 days to complete it. Once the results are in, you’ll then receive a final offer with an approved rate. You also may be covered in the interim (this is called temporary life insurance coverage, of TLIC for short), until your medical exam is completed.
And while a medical exam sounds intimidating, a medical exam for term life insurance eligibility isn’t anything to stress about. The exam should only last 20 or 30 minutes and will include a brief physical review of your height, weight, and blood pressure, an interview about the health history of you and your family, and the collection of urine and blood samples. You can even have the exam scheduled to be administered in your home or office.
Don’t worry if it turns out that you do need a medical exam to finalize your application process. A required medical exam is not necessarily an indication of your health rating or your qualification for a Haven Term policy.
Can I trust a life insurance policy that I buy online?
The relationship you have with your insurer is of the long-term variety (sometimes several decades). So as with any serious relationship, you want to make sure you can count on them. That’s where life insurance company ratings can help.
When you buy term life insurance online, you need to consider how dependable that coverage is. In other words, how likely is it that the company will be able to pay out on your policy should your beneficiaries need it? The company needs to be financially viable today and demonstrate a history of financial strength that helps you to feel confident that it will still be around many years for now. Researching the ratings of your insurer can be an important step before choosing a policy.
MassMutual, the insurer that issues the Haven Term policy, has a rating of A++ from A.M. Best*. That’s A.M. Best’s highest rating… not that we want to brag or anything.
When is the best time to apply for life insurance online?
For most people? Now. (Assuming you need a policy, of course.)
The younger you are when you purchase a policy, the lower your rates may be. So why not take advantage of the fact you’re younger today than you will be tomorrow, and lock in a policy rate and some much-needed peace of mind?
Once you’re confident about what life insurance is, what you need for your family, and why you’re planning on purchasing a policy with a specific online life insurance agency like Haven Life, the actual process can actually be as simple as it seems. No need to procrastinate here.
What else should I know about buying life insurance online?
Buying life insurance online is easier than ever, but it’s still important to make sure you are informed and do your due diligence. Research. Read up. Get a quote (or three). Also, make sure you are familiar with the different types of coverages and the one that best fits your needs. For example, in this case of accidental death life insurance, your beneficiaries would only receive a payout if you died due to an accident while a term life policy would pay out for death due to an accident as well as an illness. Being crystal clear about what the policy does and does not cover is essential.
It’s also important to make sure your family is adequately covered. If you’re purchasing a policy, it may be smart to talk about your partner purchasing a policy as well. An individual life insurance policy is independent of employment, and if your partner stays at home — or if you do — it’s important to think about how your family would be affected if he or she were to die. Suddenly, things like childcare would need to be outsourced, and the costs may add up quickly.
So, order up some takeout. Break out the laptop and apply for life insurance together (talk about a date night.)
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