How To Buy Term Life Insurance Without An Agent

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How To Buy Term Life Insurance Online

If you decide to purchase life insurance online without the assistance of an agent, the process is simple.  Once you know how much coverage and how long you want it to last, use an online quoting tool that shows instant quotes like the one on this site.  You can compare the A.M. Best rating and premiums; There’s also a simple health analyzer to help you determine what rate class you’ll be approved for.

You’ll start by estimating your rate class.  Be realistic.  If you know your weight is at least 20% more than it should be, don’t choose to estimate yourself at Preferred Plus.  The rate class you choose doesn’t matter to an insurance company.  It’s more for you to estimate what you’ll pay in premiums.  Go to the online link to get to the application. We use Banner Life’s online link to buy Term Life insurance without talking with an agent. Fill out basic information, including the amount of coverage, length of time for the term, your name, address, and date of birth.

After you submit the first part with basic information, you’ll get an email from the company within 24 hours.  This is where you’ll provide your health history, lifestyle activities like scuba diving or rock climbing, and foreign status. You’ll also tell them who you want to name as your beneficiaries and their information.  The insurance company will ask for your consent for third-party reporting agencies to release personal information to them, including prescription history, medical information, driving record, and other court filings.

Once you complete the second part online, the insurance company will determine if you need further investigation.  If they do, you may be required to complete a medical exam by a nurse, and they could order medical records.  Sometimes, you’ll be asked to provide additional information like your driver’s license, green card, Visa, or need to answer more questions if there are discrepancies in verifying your identification.

After the insurance company compiles all your information, the underwriter will determine what rate you qualify for, and you’ll get an email with their “Offer.”  You can either accept the offer or decline it.  If you accept it, you’ll be asked to provide payment information, and then your term life insurance will become active once the payment is approved.

What You Need When You Fill Out The Application

Beneficiary Information– Figure out who your primary beneficiary will be.  You can have more than one primary beneficiary, but for most, it’s their spouse or children.  You’ll need their name, date of birth, phone number, and address.  Most companies also ask for the Primary Beneficiaries Social Security number, but it may let you proceed without it. You should also list a contingent beneficiary or the person next in line if your primary beneficiary dies before you.

Medical Information– Make a list of the physicians, hospitals, and other outpatient facilities you’ve been to in the last ten years.  Most people don’t have the exact dates they saw physicians or were treated in a facility, but try to estimate to the best of your ability.

Prescription History in the last 5 years- If you have taken medications within the previous five years, note their names, the time frame you used them, and the medical reason you were prescribed each.  Be specific. For example, if you took pain medication, you’ll want to know the cause, not just where the pain was.  Do the same thing for things like antibiotics.  Make sure you give the exact reason you were prescribed an antibiotic.

Banking Information– You may be required to provide payment information when you fill out the application.  If you’re offered Temporary Insurance, you’ll need to provide it when you do the second portion of the application during the online interview.

Our #1 Recommendation

Banner Life for Term Insurance  Banner Life is an A+ rated company by A.M. Best and is the largest term life insurer.  More often than not, they offer some of the lowest rates for their term-life policies.  You may qualify for their exam-free underwriting process for policies up to $2,000,000 and possibly get an approval in only a few days.

You may qualify for their expedited underwriting process and get approved in a few days.  Banner Life also offers non-medical process, meaning policies under $2,000,000 don’t automatically require a medical exam.

 

You shouldn’t disregard a company if you don’t recognize the name.  Just because you don’t recognize the name doesn’t mean it’s not a good company.  Some insurers spend more money on advertising and marketing campaigns than others.  For example, Banner Life is one of the most competitive companies for term insurance today.  They are issuing more Term Life policies today than any other insurance company.  Most people have never heard of them unless they were researching Term Life Insurance. On the other hand, you probably recognize Met Life.  They’ve done a lot of mail, print, and TV commercials over the years.  It doesn’t mean they are any better than Banner Life.  It just means you’ve heard of them.

Tips for Ensuring No Surprises When Buying Life Insurance Directly

To purchase life insurance directly online, you should understand a few things.  First, you won’t talk with an agent unless you choose to.

  1. Buying life insurance online won’t get you any personal advice. If you don’t want any advice, that’s OK, but it may benefit you to get an opinion.
  2. You won’t have access to information specific to the policy you’re interested in like you would an agent.
  3. Brochures, personalized illustrations, and product information aren’t readily available; sometimes, they’re unavailable online.

Agents can assist you in estimating your premiums, coverage options, riders, and exclusions. This empowers you to make well-informed decisions based on your specific requirements and budget.

Purchasing life insurance without an agent gives you the exact control over your policy management. You can easily update beneficiary information or make changes to your coverage as needed by accessing your account online or calling the insurance company’s customer service or policyholder service number provided on the policy.

Some policies may not include conversion as part of their coverage. Conversion refers to the ability to change or switch between different types of policies, from term life insurance to whole life insurance. It’s important to carefully review the terms and conditions of any policy you are considering to ensure that it includes conversion if that is something you desire. If conversion is not explicitly mentioned in the policy, you may not have the option to convert your policy in the future in an unforeseen circumstance. Some policies with minimally lower premiums, including Haven Life, Penn Mutual, and Thrivent For Lutherans, do not include a Conversion option. These policies just don’t stand up to the quality of most others.

While it is true that not all policies offer the option to continue coverage, many insurance providers do provide this feature as a way to ensure ongoing protection for their policyholders. It is essential to carefully review the terms and conditions of your specific policy to determine if continuing coverage is available. If it is not, you may want to explore other insurance options that offer this valuable benefit.

The Pros and Cons of Buying Term Life Insurance Without an Agent’s Assistance

Whether you’re considering a term life policy, whole life coverage, burial or funeral insurance, universal life, or final expense insurance, understanding the pros and cons can help you make an informed decision about your financial future.

Pros of buying life insurance directly:

1. Convenience: Buying life insurance directly lets you skip the hassle of dealing with intermediaries or agents. You can research, compare, and purchase policies without talking with an agent.

2. Cost: The cost is the same whether you use an agent or complete the process.

3. Control: Buying life insurance directly gives you complete control over the decision-making process. You can choose the coverage that best suits your needs without any external influence.

4. Time: Complete the application process at your convenience whenever you have the time.

Cons of buying life insurance directly:

1. Limited guidance: Without an agent’s expertise, it may be challenging to navigate through complex policy options and understand all aspects of your coverage.

2. Lack of personalized advice: Direct purchases often lack personalized recommendations explicitly tailored to your unique financial situation and goals. The problem with this is that you may not understand everything about the policy you should.

3. Limited product range: Some insurers may only offer a limited range of policies when selling directly, which could restrict your options compared to working with an agent with access to multiple insurers’ products.

4. Potential for mistakes: Without professional guidance, there is a higher risk of making mistakes during the application process or misunderstanding specific policy provisions.

It’s important to consider these pros and cons before deciding whether buying life insurance directly is right for you.

Nothing replaces doing your due diligence before you buy a policy.  Make sure you research different insurance companies and policies available online.  You should always compare quotes and company ratings before you apply.

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