Is It Cheaper to Buy Life Insurance Online or Offline?
NEW YORK, January 11, 2023 (Newswire.com) - iQuanti: The life insurance marketplace is full of professional agents and brokers who are more than willing to speak with you on the phone and connect you with a great policy. However, thanks to technology, there are also hundreds of reputable websites that claim to do the same thing at the click of a button. So, which one is better?
While cost is certainly a primary concern, customers also need to think about the overall experience. This post will look into the pros and cons of comparing life insurance quotes online versus offline through an actual professional.
The Quoting Process
Before finding out how much a life insurance policy will cost, you'll want to get a quote. The process for doing this can differ significantly between online and offline vendors.
Online
Getting a quote online is usually fairly straightforward. You'll spend some time answering a few questions, and the software will crunch this information to determine your rate.
Even though this may feel anonymous, once the website has your information, it may spam your inbox with daily emails encouraging you to make a purchase. Or you may receive dozens of unwanted phone calls from different representatives pressuring you to make a decision.
Offline
When you're looking for something more than just a simple term life insurance policy, speaking to a real person who can listen to your concerns and answer your questions could be helpful. Live agents can also recommend products you may not even be aware of.
At the same time, it's also good to be aware that some companies mandate their agents to push certain products. So, you always have to do your due diligence when considering if the policy being offered is truly the right choice for you.
Cost and Discounts
Because life insurance is based on so many different factors, there can be some noticeable differences between what one provider will offer you versus another
Online
Online quotes for life insurance will often come with substantially discounted rates. Because these options can be purchased directly by consumers without a middleman, the fees can be minimized, making the premiums much less.
Offline
Agents and brokers make their money by helping customers to purchase a policy. Though their commissions and fees will inflate the cost, there is also the possibility that they may be able to get you certain discounts that aren't well-promoted. Also, a good representative may also be able to recommend a policy within your budget but offers a wider range of benefits (such as an indexed universal life policy).
Claims and Future Assistance
Although price is often at the forefront of the life insurance buying experience, there's often more to it that can add to your costs later on when you have a question or need to make a claim.
Online
Unfortunately, when making a purchase online, you sacrifice that person-to-person connection that's made when working with a real person. Each time you call the life insurance company, you'll most likely be redirected to the latest customer representative who you've probably never spoken with. Additionally, if you have questions, you may have to rely on tools like email and chats with customer service where there may be a delay, or the answer might not fit your question.
Offline
The beauty of working with an agent is that this will be your person throughout the life of the policy. If you ever have questions or concerns, they can help you and provide you with straightforward answers.
The Bottom Line
Buying life insurance can vary significantly between online and offline vendors. Actual agents can better handle both the quoting process and future claims. However, buying basic term policies online is usually cheaper because it cuts out the middleman and minimizes the fees.
Source: iQuanti