Is it possible to get the kind of insurance you want with online sales platforms? While you can certainly get some types of insurance online without ever talking to another person, you might not get what you want. It may be massively convenient to buy things at the click of a button, yet some things are simply better with a personal touch. Ultimately, it all comes down to what you WANT from an insurance policy.
The Internet’s Impact on Life Insurance Sales
While many people would have you believe that all life insurance is the same, that simply isn’t true. Term insurance and whole life insurance, for example, have wildly different components. For starters, one is permanent insurance, and the other is not. When it comes to life insurance, you’re much better served by looking at all types and finding a policy that works for you. Regardless of typical advertising, cheaper is not always better.
Consider the following:
Term Insurance is Simpler to Buy
Term insurance is temporary insurance that many people buy when they want to protect something or someone on the off chance they die. For many people, term insurance is useful when they have children or get married. However, it is not permanent, and has no cash value component, making it a relatively empty “cost” unless you die while you have it… and for most people, term insurance coverage falls off around age 60.
Since term insurance is a pretty simple product, it’s also a pretty simple application. You CAN get inexpensive coverage without getting a medical exam or speaking to another person. If you want something immediate, this is the path of least resistance.
However, for those wishing to build a legacy or family banking system, you simply cannot get what you want without a medical exam and more extensive underwriting. And typically, this means speaking with a life insurance agent. This is the type of insurance that has a savings component and is permanent insurance that is guaranteed to pay out.
Whole Life Insurance is Highly Customizable
When you want to buy term insurance, it’s pretty straightforward. There aren’t a lot of bells and whistles to think about. You decide how much coverage you want, and the company gives you some pricing and term options. You can get more complex with your policy by adding riders, and having an agent explain to you what these riders do (and why you may or may not want them) is invaluable.
Whole life insurance, on the other hand, is much more complex and can be customized to suit your specific objectives. The structure of your policy can change depending on whether you want early cash value build-up, PUAs, riders that give you additional benefits, and much more. Having an agent who is extremely familiar with the policies can help you get exactly what you want.
Not to mention, you are just as unique as the product you’re buying. The customizations that work for you aren’t necessarily going to work for the next person. Having someone who can look at your personal economy, financial objectives, and characteristics can help you get coverage as unique as you are.
Most People Benefit from Help
Finally, going to an agent is important simply because buying life insurance is hard. Since it’s a rather infrequent purchase with a lot of under-writing and legal speak, having a professional interpreter can go a long way. Buying insurance isn’t like going to the grocery store and grabbing something off the shelf.
While the foundational financial principles of insurance aren’t hard to grasp individually—such as shared risk, sequence of returns risk, and opportunity costs—the configuration of these principles within the context of your finances CAN be complex.
An agent who understands what all of the life insurance products and riders are from a deep level can advance your financial objectives tremendously. If nothing else, having an agent can be a great way to get your specific questions answered on a human-to-human level. Even the internet has its limitations in communicating concepts and ideas.
Get the Coverage You WANT
Ready to start a whole life insurance policy, or simply have some questions to get answered? We’d love to put you in contact with a Prosperity Economics Advisor, who can answer your questions and get the ball rolling.