Life Insurance Crash Course for Online Consumers: How to Compare the Best Rates!

Last Updated: August 2020

After taking a few minutes to read through this crash course, you will know more than 99% of online life insurance consumers.

The most critical tip I can give anyone searching online for life insurance is to work with an experienced and independent life insurance agent or agency.

Below, we’ll show you several things to look out for when shopping for life insurance online, and tips to compare rates and find the best life insurance policy from a top-rated carrier.

• The Problem with Most Life Insurance Agencies
• How to Compare Life Insurance Rates Online
• Frequently Asked Questions about Life Insurance

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The Problem with Most Life Insurance Agencies

The life insurance business is littered with large call centers where telemarketers are given a script to sell you life insurance. These agencies choose mass production over service and they advertise all over the internet, radio, and TV (Matrix Direct, SelectQuote, AccuQuote, Zander Insurance, etc.).

While they claim to be independent, they only offer a handful of companies. You will be purchasing insurance from a new agent who doesn’t have the knowledge, ability, or desire to find you the best rate. We have many company reviews available such as our AARP life insurance review to help you in making the best decision for you and your family.

When you decide to apply for life insurance, you have to speak with a licensed agent by law. So make sure you find an experienced and independent life insurance agent that can help you with any questions, find you the best rate, and service your policy when you need to make any changes.

Ok, on with the crash course…

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How to Compare Life Insurance Rates Online

Life insurance rates are the same no matter what agent or agency you use. We all use the same published rates.

The key to securing the best life insurance rates for you is to find the company that will look most favorably at your individual health and lifestyle.

It’s as simple as that.

Each company has different underwriting guidelines. For example, you may qualify for standard rates with Company A, but Company B may offer you preferred rates.

Note: If you have any health issues, please contact us and don’t use our instant quote tool.

Tips for Comparing Life Insurance Quotes Online

There is so much noise when it comes to finding life insurance quotes online, that it is difficult for people to know what to do. Here are some helpful tips to make sure you don’t overpay for a policy.

1. Be Careful About Giving Out Your Information

Stay away from entering your information into websites where there is no information about the company. These are data mining sites disguised as life insurance websites. Your information will be sold to multiple life insurance call centers as a lead and you will be barraged with phone calls.

These websites are everywhere, beware!

2. Be Skeptical of the First Life Insurance Quote You See

Beware of the life insurance industry’s version of bait and switch: Quoting you a lower rate than you can qualify for, just to get you to complete an application and medical exam.

When the rate comes back more expensive, most consumers take it because they have already invested time and energy.

3. Work with an Independent Life Insurance Agent

Make sure you’re working with a truly independent life insurance broker or agency who has access to all the best life insurance companies. Think of these online life insurance agencies as a “life insurance comparison service” who work on behalf of you and not any life insurance company.

Some companies use captive agents who can only sell policies from one or just a few different carriers. Using captive companies such as State Farm or Primerica life insurance will only limit your choices.

Comparing more companies will improve your chances to get lower rates.

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Frequently Asked Questions about Life Insurance

Many financial advisors suggest 8-15 times your annual income. In reality, it’s not that simple. We believe it’s different for each situation.

If you have a lot of financial obligations (such as young kids, a small business, elderly parents requiring care, a mortgage), you may consider more coverage. If you don’t have a lot of financial obligations, you may consider less.

Just remember that you can always add (purchase another policy) or shed coverage in the future. For many people, it’s about how much coverage they are comfortable paying.

What’s involved in buying a life insurance policy?

This is how our process for buying life insurance works. It will be the same for any good independent agency.

1. We complete an application over the phone. With 90% of carriers, we can complete an e-signature through e-mail so there’s no paperwork involved. Don’t worry, we’ll walk you through it.
2. We schedule a medical examiner to come to your home for the free mini-medical exam. This includes a blood test and a urine test. The examiner will bring the application for signatures and send it directly to the life insurance company.
3. The life insurance company orders your medical records from your doctor. This is what typically takes the longest amount of time. Once those are received, an offer will be made.
4. After accepting the offer, we will order the policy and you’ll have to sign some forms to place the life insurance coverage in force. This is when your first premium is due.

How long does it take to get a policy?

Typically, an offer will be made 4-6 weeks after taking the medical exam.

If you would like fast life insurance coverage, there is life insurance with no medical exam. However, this is usually more expensive and fewer people will qualify.

Do my life insurance rates ever change?

No. All policies we offer are guaranteed level for the length of the term or life. However, some companies do have policies where rates can increase. These are less popular and can be deceiving.

Does it cost anything to apply for life insurance?

No. The life insurance company pays for everything, including the medical exam. Your commitment is the time to take the exam and to be available for any questions or requests in underwriting.

You don’t make a payment until you are approved at rates you’re comfortable with.

Do you have a family plan?

No. Children can be covered by most companies as a child rider for a limited coverage amount, typically up to age 23. You may also purchase a separate policy for them.

A husband and wife must have separate policies and apply individually.

I don’t want anything drafted from my account, can I send a check monthly?

99% of life insurance companies require you to be set up on an automatic bank draft if you’re paying monthly. Some companies will let you send a check if you’re paying quarterly, semi-annually, or annually.

Remember, you can cancel your life insurance at any time. Even if you’re on an automatic bank draft.

How do I know I’m getting the best rate?

We have access to all the top-rated life insurance carrier’s rates. We’ll share with you the best rates on the market and then show you the best rate you can qualify for. If you are open and honest with your health, you won’t find a better rate.

If you’re healthy, go ahead and use our instant life insurance quoting tool on the right. If you have health problems and need life insurance, we recommend calling us to speak with an experienced agent.