You’ve made the decision to purchase life insurance and you thought, “I’m going to simplify this process by researching and making the purchase online.” However, when you Google the words “life insurance,” or “life insurance quotes,” you are presented with many choices. You were looking for a simple solution, so how can you simplify the process? The first step is to gain an understanding of the types of life insurance websites on the Internet:
- The Broker: This is most efficient way of purchasing life insurance. You enter a little information and the web site’s quote engine will give you several choices, based on your information. If the quote takes into account health questions (e.g. blood pressure, cholesterol, family history, etc.), your quote will probably mirror the insurance companies’ underwriting guidelines and will most likely be closer to the final premium determined during the underwriting process (the actual premium may vary from the quote if other medical and/or lifestyle information comes up in the process).
- Insurance Company: A few insurance companies have their own web presence and even offer quotes on their websites. In most cases, your information will be forwarded to agents or brokers who will contact you. Many people go direct to an insurance company’s website, thinking the premiums will be less expensive than going through a broker. As the premiums are set and filed in every state, the price is the price, no matter who you purchase the policy through. The downside of going through insurance company sites is that you will have to go to many different sites to comparison shop several companies.
- The Lead Generator: These websites generally don’t give you instant quotes. They will require that you complete an online form and will forward your information to one or several agents or brokers, who paid the lead generator for your information. You can usually expect several phone calls from these agent/brokers, as they are looking for a return on their investments.
- The Lead Generator Aggregator: This is my least favorite of the online options. With this type of website, you enter your zip code and a list of companies comes up. Usually, it’s a combination of brokers, insurance companies and lead generators. You now have to sort through all the offerings and see which one you’d like to use. It’s basically a duplication of websites you can find yourself in Google (or Yahoo or Bing) and will only add to the time spent shopping for life insurance. There has recently been a rash of these types of websites popping up out of nowhere. Most, in fact, are owned by the same company.
I would recommend checking out several broker websites and work with an established firm with a process that simplifies the shopping experience for you. Several websites, including LifeInsure.com, meet these requirements.