Obtaining Life Insurance Quotes Online Before Applying for a Policy

Getting Life Insurance Quotes Online Is Easy

With the passage of time and advancement in technology, more people have been looking for life insurance quotes online than ever before. By finding a good life insurance quote online, you are moving one step closer to creating the sort of financial security that your family has been looking for.

However, despite the many obvious benefits of obtaining a life insurance policy—financial security, asset diversification, and the protection of your loved ones—the process of securing a quote can still sometimes be rather complicated. There are many moving pieces involved in the life insurance underwriting process and taking the time to understand this process is very important.

In this article, we will briefly explain the life insurance application process and also discuss the unique dynamics that are involved when you decide to get life insurance quotes online. Because there are many different online life insurance agencies and providers available for you to choose from, we will also discuss the important things to consider before you end up making a final decision. By educating yourself about the process of obtaining a life insurance quote, you will be one step closer to finding a policy that works for you.

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How Is the Cost of a Life Insurance Policy Calculated?

‘Underwriting’ is a process by which a life insurance company determines the cost of a policy. Unlike a product that you may purchase at the store, the cost of a life insurance policy will vary tremendously by the person. Many different variables are considered throughout the course of the underwriting process, and each of these variables may have a positive or negative impact on your monthly premiums.

Usually, the two things that a life insurance provider will consider first are your age and your health. Your gender and your lifestyle risks (such as smoking or the recreational flying of planes) will also need to be accounted for.

The cost of a life insurance policy is generally determined by the perceived likelihood that the insurance provider will need to pay your death benefits in the near future.

Naturally, people who are older will be closer to the end of their life and will also be expected to pay more for a life insurance policy.

People who have health issues—such as obesity, cancer, diabetes, HIV/AIDS, high blood pressure, and others—may be asked to pay higher monthly premiums. They may also even be denied life insurance from the very beginning. Some life insurance providers will require you to take a medical exam or answer a lengthy medical questionnaire. Even online life insurance companies will need you to answer some basic questions about your health.

>> Read: What does the life insurance medical exam test for?

The cost of a life insurance policy will also depend on the type and amount of life insurance you are hoping to receive. Term life insurance policies are usually much more affordable than permanent life insurance policies and, consequently, will also be the easiest to apply. Though there are certainly some differences that exist between applying online or in person, the variables affecting the cost of a policy will largely remain the same.

How Can I Find Life Insurance Quotes Online?

Once you have decided that you want to purchase a life insurance policy, the next step is to find a resource that you trust in order to get a quote. Contrary to popular belief, attempting to get a life insurance quote does not necessarily mean that you need to make any lasting commitments. In fact, even life insurance agents who specifically work for one company will still likely recommend looking at multiple different quotes before making any final commitments.

Fortunately, there are many different resources online that allow you to compare life insurance quotes in one place. These quotes may not always be exact, but they can usually provide you with a general estimate of what you can expect to pay each month for a policy (your premium).

Once you have found an online life insurance quotes generator, such as the ones you will find on websites such as LifeQuote, you will usually be asked to enter your name, answer a few general health questions, and decide the amount of coverage you are thinking about applying for. Quotes can often be obtained in three minutes or less, depending on the site speed and calculation method. Life insurance quote tool is also an excellent resource for creating “what if” scenarios and finding a policy that works for you (for example, seeing “what if” I wanted to double my death benefits, etc.).

What Are the Benefits of Getting Multiple Different Quotes Before Applying for a Policy?

If you know someone who works in the life insurance industry, you may be tempted to accept the first quote that you see. However, even if you do end up going with the first option you were considering, taking the time to look at multiple quotes can still be quite beneficial. At the very least, you will be significantly more confident in your final decision.

Getting an initial life insurance quote online—which, again, can usually be obtained in a matter of minutes—will make the process of shopping for a life insurance policy much easier. Having a quote from a reliable online resource will enable you to have something that you can use for comparison shopping or even (occasionally) as leverage. As is the case with most things, the more you can learn about your options, the more prepared you will be to make the decision that is best for you and your family.

How Do I Know Which Life Insurance Policy Is the Best for Me?

Whether you have secured life insurance quotes online or in person, it is still very important to recognize that applying for a life insurance policy is a very personal process. As stated, there are many distinctive variables that will be accounted for during the underwriting process. The policy or life insurance provider that makes the most sense for you may not necessarily be the one that makes the most sense for another person. This is why getting multiple different quotes is so fundamentally important.

Though the price of a policy is something that will be quite relevant, you should still acknowledge that the policy that is the most affordable is not necessarily the policy that will be in your best interest. There are many other factors that will be worth looking into. Some of these factors include the “riders” attached to the policy, the option to convert or expand your coverage in the future, the reliability of the company you are considering, and whether or not your life insurance coverage can be combined with other insurance policies for a discount. Once you have taken the time to consider each of these variables (and any other variables that are important to you), you will be in a much better position to make an objectively good choice.

Steps Involved in the Life Insurance Application Process

The life insurance application process involves multiple different steps. The complexity of the process and the amount of time it takes for your application to get approved will depend on the life insurance provider that you choose as well as the type of life insurance that you are hoping to apply for. While some life insurance providers may require several weeks before they can finally approve your application, others may be able to approve your application the very same day that you apply.

1. Choose the type of policy you need

Once you have received a life insurance quote—or multiple life insurance quotes—the next step is to decide exactly which policy you hope to apply for. Do you want a term life insurance policy or a permanent life insurance policy? Do you want a lot of coverage or just a little bit of coverage?

>> Find Out: Difference between permanent life insurance and term life insurance coverage

2. Fill out an Application

Once you have decided on the policy, the next step is for you to fill out the application. Most life insurance applications will ask about your age, gender, medical history, lifestyle choices, and several other categories. Some life insurance companies will also require you to take a medical exam before your application is actually approved.

3. Moving Towards the Approval of the Policy

Along with the medical exam, whether you chose to apply for your life insurance policy or not, there will almost always be a phone interview that will help the life insurance provider gain a full understanding of your situation. Once your application has been approved, you will then be in a position to decide whether or not the policy you applied for makes the most sense for you. You will not be financially committed to any life insurance policy until you have begun to actually pay your premiums.

As you can see, there are many different moving pieces involved in the process of obtaining a life insurance policy. However, despite the many complexities of the industry as a whole, with a proper understanding of the application process, you can easily begin to take your first steps forward. By obtaining life insurance quotes online before you begin the application process, you will be in a much better position to find the type of policy that you need.