2 Easy Ways to Get Term Life Insurance: Online or Over the Phone
Buying life insurance may seem overwhelming. To start, it’s difficult to have a conversation about it with loved ones, but there’s also so much information and many options to consider. Here, we’ll review some of the easier ways to buy life insurance, including how to get life insurance quotes and apply for coverage over the telephone or online.
According to a recent survey from LIMRA, approximately 30% of Americans plan to buy a life insurance policy online.1 While that meets the needs of some individuals, there are still many people who prefer to purchase their policies by directly calling a company.
According to Todd Oster, Assistant Vice President at Amica Life, there isn’t a “wrong or right way” to secure life insurance for your family. Depending on your comfort level with the information available, you may choose to shop online, speak with a licensed life insurance agent or both.
Approach 1: the convenience of online quotes
The internet offers a substantial amount of information on life insurance products — and how to use them. In addition, many websites let you compare quotes and complete applications online. And depending on your health/how much life insurance you need, you may be able to obtain coverage without an insurance medical exam.
Oster says, “The internet allows you to self-service your life insurance purchase experience, and more people are taking advantage of that capability.”
Online applications make buying life insurance convenient by allowing you to apply for a policy any day or time that works for you.2,3
If you choose to buy life insurance online, you’ll want to know beforehand what type of policy you need, as well as how much life insurance to purchase. Here are two basic policy types:
Term life insurance:
Typically, term life insurance policies are available for specific periods of 10, 15, 20, 25 and 30 years. Once you get a policy, your rate and coverage stay the same until the end of the term.
Whole life insurance:
Usually, whole life insurance policies are more costly and for a number of reasons, mainly because they typically help protect your family for life. Neither the death benefit nor premium will increase as you age or as your health changes. Due to their slightly higher level of complexity, most whole life policies are not available for a quote and online application.
Another tip: Have information gathered ahead of time to speed up the online purchasing process. Before starting your application, gather your:4
- Social Security number
- Driver’s license number
- Recent medical history, including height, weight and general health history for yourself, including prescription details
You’ll also want to know how much life insurance coverage you need to purchase. To help you decide, here are some questions to answer:5
- How much debt do you have? (Think about your mortgage, as well as car loans and credit card debt.)
- Do you have children who plan to attend college?
- How old are your children?
- On average, how much are your monthly bills?
- Do you have a small business you want to ensure has funds after you’re gone?
- Do you want to leave a legacy for your family?
- What kind of funeral or end-of-life plan do you have?
- Do you currently have life insurance through your employer or any other life insurance coverage?
- Do you have an emergency savings that your family can rely on?
- What other expenses do you think your family will need to pay for in your absence?
The bottom line: It’s easy and convenient to apply for a policy online if you have a good understanding of life insurance and know which type of policy you’d like to buy beforehand. If you’re unsure of the answers to the questions above or want to talk through them with a licensed sales representative, buying life insurance online might not be your best option. Oster says, “Purchasing life insurance online is well-suited to someone who’s been through the process before.” Online application is also useful for insured consumers who want to add more coverage through the purchase of an additional policy. You may want to do this if you just had a baby or take on new debt, such as a mortgage or college tuition.
Approach 2: the personal attention of a sales representative
A sales representative helps you understand life insurance terminology and offers advice about the right amount of coverage for your situation. When you have questions or want to talk through options, it makes sense to speak with a sales representative directly.
Call a life insurance sales representative directly if:
- It’s your first time buying life insurance.
- You’re uncertain about the life insurance buying process.
- You’re unsure how much coverage your family needs.
- You need recommendations from an experienced representative.
- You have a unique situation that isn’t readily addressed online.
- You’re interested in multiple life insurance products.
Some companies let you start the application process online. If you have questions along the way, you can talk to a sales representative later. Amica’s secure website saves your application, so your sales representative can seamlessly reference it during your phone call and help you complete it.
At Amica, we offer term life insurance policies online or through a sales representative. If you’d like to purchase a whole life policy, it’s best to call one of our licensed insurance representatives at 800-234-5433.
Remember, buying life insurance is a big step. It requires you to consider difficult questions about how you’ll care for your family when you’re no longer there. Above all, choose the best and most comfortable approach for you and your loved ones.
Want to learn more about Amica life insurance?
1 2022 Insurance Barometer Study, Life Happens and LIMRA, 2022.
2 Interview With Todd Oster, Assistant Vice President at Amica Life.
3 Online application not available in all states.
4 How to Buy Life Insurance the Easy Way, moneyunder30.com, 2021.
5 10 Best Tips If You’re Buying Life Insurance for the First Time, Forbes, 2022.