A recent study revealed that more than 80% of consumers said they’d use the internet to purchase life insurance, but they also say that doesn’t mean they wish to avoid direct, personal interaction when it comes to answering questions and addressing other concerns. Most respondents to the LIMRA study said that while they will use the internet as a starting point to research materials and then begin to think about their options, they also want a personal touch involved in the process.
“Obviously, the internet has fundamentally changed consumers’ buying practices over the past 15 years,” says Marvin H. Feldman, CLU, ChFC, RFC, president and CEO of the LIFE Foundation. “Recognizing the growing consumer interest to use the Internet to conduct research and buy life insurance, life insurance companies and agents have developed and implemented innovative strategies to engage and serve consumers through their websites and social media platforms that are more convenient for the customer.”
It’s important to understand the intricacies of a particular policy, and most consumers say that understanding is more important than the cost of their coverage. Whole life, term, guaranteed benefits; the terminology can be confusing, and as customers view a variety of insurance websites, they often say they become disillusioned when confronted with “too many choices.”
So to that end, here are our guidelines to help you navigate the process of buying your life insurance.
What Are You Buying?
According to many studies, it is important for most to understand the intricacies of the policy and this is defined as more important than cost. Whole life, term, guaranteed benefits; all of this terminology can be confusing and as customers view a variety of insurance websites, sometimes they become disillusioned by too many choices. This is why speaking to a life insurance agent or broker is important to help you.
What is the Cost?
Again, even though life insurance costs have dropped, most individuals are under the assumption that it is extremely expensive. Many with health issues are avoiding it entirely and are not aware of options available, even for the disabled. Some do not understand the cost variables that occur with or without a physical exam. Agents need to be specific when describing the differences.
What Kind of Retirement?
Life insurance needs depend on your family and business situation. Whether you have a spouse, children or a business, life insurance can protect in the event of an untimely death. What about college for your children? A trusted life insurance specialist will be able to offer suggestions.
Will Unexpected Medical Conditions Be Paid?
If you need medical assistance immediately and you cannot pay the bills, you can borrow from a permanent life insurance policy because it builds a cash value over time. In fact, there are no restrictions from borrowing for college tuition or other unexpected events.