In modern day society, not having life insurance actually seems to be pretty uncommon. However, there are times when someone might opt out. Maybe you don’t want to travel to an insurance company just to determine your eligibility, or maybe you’re in a rough spot financially and can’t afford the premiums right now. Either way, acquiring this type of insurance is not only easier because of the internet, it’s oftentimes more affordable for people on a budget. Here’s what you need to know about getting life insurance online.
What is Life Insurance and How Does it Work?
Let’s start by going over what this insurance is and how it functions. It’s a type of insurance that you pay on over the course of your life and build up a cash value. The cash value is what goes to your beneficiaries in the event of your death. However, this is just the bare basics of this insurance.
Death isn’t the only way to receive a payout from a life policy. You can sell your policy back to the company you obtained it from for a percentage of the overall value. The same also goes for getting a life settlement. If you decide on a life settlement, reviewing a guide that gives you all the details you need to know is recommended. Life settlements are just like selling back to the insurance company, except the buyer is a third party, whether it’s an individual or company.
Types of Life Insurance to Choose From
There are many types of life insurance available when it comes to catering to specific needs, so you should at least understand the basic features to look for. For example, while whole life insurance builds up a cash value over time, term life policies give you a set amount for a specific time. This time limit can span as short as five years or as much as 30 years. However, as time goes on, the value of your policy decreases. Term life is simply the opposite of a permanent policy. Here are the other types of life policies:
- Indexed universal
- Variable and variable universal
- Simplified issue
- Group policy
- Stock policy
Stock policies work much differently than your standard life policy. The value of a stock policy is determined by the status of the insurance company’s stocks. If it goes up, the value increases and if the stocks drop, the value decreases. Be sure to study each of these policies to better understand how they work and to figure out which one is best suited for your needs.
Why You Should Purchase Online
After you’ve settled on the policy you need, now’s the time to find a reputable insurance company. And all it takes is a quick Google search to begin your search. Review every company you find and compare each quote you get. Purchasing online is more ideal because the premiums have a higher chance of being lower, you have access to continuous customer support and there’s little risk involved.