How to Buy Life Insurance Online

One of the advantages of purchasing life insurance online is getting an idea of how much life insurance might cost you.

Instructions

Difficulty: Moderately Easy

Things You’ll Need:

• Financial Calculator
• Internet Access
• Computers
• Life Insurance

1. Roughly estimate the amount of insurance you need by multiplying your gross annual income by 6, 7, or 8 (if under 40), or 4, 5, or 6 (if over 40). If you have a mortgage to pay off, consider adding that amount to whatever result you have.
2. Go to insure.com, or any one of several other Web sites that feature life insurance quotes.
3. Fill out the questionnaires as honestly as possible; if in doubt about any health question, be a little pessimistic - at least for a quote.
4. Choose a quality company with a plan that appeals to you and that is affordable.
5. Follow the individual company's instructions for submitting a formal application.
6. If a medical or paramedical exam is necessary, schedule the exam time in the morning, if possible, for best results.
7. After successful underwriting, check your policy carefully for errors or inaccuracies.
8. Sign the delivery documents and return them to the insurance company along with your first premium check to put the coverage in force.
9. Keep your insurance policy in a safe place, treating it like any other legal document.
10. Make sure your beneficiary knows the policy's location and/or provide that person with a full copy of the policy.

Tips & Warnings

• Many Web sites have online insurance calculators to help you determine how much life insurance you need.
• Your best buy in life insurance is usually term.
• Level-premium plans do not go up in price until the end of the specified number of years in the term plan - usually 10, 15, or 20 years.
• If you only need the coverage for 1 to 3 years, consider an annually increasing premium to save on total costs.
• A good health history and exam results will get you the lowest rates.
• If your health is a problem, search the Web for sites that specialize in "impaired risk" or "sub-standard" life insurance.
• Tobacco use of any kind will increase your rates; but, if you quit, you can appeal to the company in a few years to lower your rate to that of a non-smoker.
• You can apply concurrently to more than one insurance company.
• Be sure to request, in writing, that the insurance company send the results of your exam and lab work to your doctor for your records - there is no charge for that service.
• Don't work out, involve yourself in stressful situations or drink caffeinated beverages before any exam for life insurance underwriting.
• You don't have to include a check with your application unless you want to.
• Don't take more than one exam for underwriting; companies can share information.
• Avoid adding unnecessary riders - particularly those for a spouse and children - to your policy. They'll drive up the price.
• Not all sites quote all companies.
• Don't forget to look at Web sites for individual insurance companies with which you may be familiar; many of those sites offer helpful calculators and may have very competitive rates.