Online Life Insurance Policies

When shopping for insurance, it is easier than ever to find a policy to fit your needs. Especially since nowadays, you can either go directly to an agent, or purchase your policy online and over the phone. Some insurance companies only offer Internet policies. Getting an online policy has many advantages - coverage can begin very quickly, you can get cheaper insurance, and there is no visit to an agent. You do have to watch what you are buying, as your choices may be limited when buying an online policy. If you need numerous features or an annuity on your policy, it may be wiser to speak to an agent.

Buying Insurance Online - When it is the best option

Internet-only insurance policies often do not offer much variety with their policies. If you are looking for whole life, variable life, and variable universal life, its best to find someone who can offer a better explanation than some websites can give. Many insurance companies that offer online policies limit them to policies that can be understood easily.

Arthur Fliegelman is the vice president and a senior credit officer for Moody's Investors service. He states, "A lot of these products that agents sell have every bell and whistle you can think of. To sell online, you want a nice, streamlined, simple product."

Annuities on the Internet

Not only can you buy life insurance, but also annuities that are exclusive to the World Wide Web. But, there are drawbacks to doing so.

When agents themselves sell annuities, they can offer a lot of popular features, such as long term care riders, a guaranteed minimum income benefit, and bonuses. When buying on the Internet, these will not be made available. Also, some annuities will not include death benefits, where the beneficiary would get whatever the policyholder had specified in their contract.

There is one large advantage to getting an online annuity, which is the ability to make an unlimited number of transfers, between both funds and any sub-accounts.

Internet Policies are increasingly popular

Making major purchases online has become increasingly popular with many people. The Internet has become part of most people's everyday lives, and so many of us feel more comfortable doing business online, rather than in person or on the phone. According to Robert Wooley, Louisiana's Acting Insurance Commissioner, anyone who does purchase an insurance policy online should read the terms of the contract thoroughly and fully. You need to have an understanding of what you are buying. "We're glad to see understanding is on the rise," Wooley says. "However, it's still troubling that while two-thirds of adults feel they have the right amount of insurance, only one-third seem to fully understand what they have."

Arthur Fliegelman, also of Moody's, believes that online insurance providers need to expand their services to be easier to understand, and with the ability to do more. He believes customers should be able to do things such as pay premiums, change an insurance beneficiary, or change their coverage online.