Should You Buy Life Insurance Online or with an Agent?

Purchasing life insurance has become easier than ever with online accessibility, but is it the best approach?

When you’re trying to secure life insurance, it’s important to carefully consider what would be most helpful to make the process seamless.

If you’re wondering whether to buy life insurance online or work with an agent, there are a few questions you’ll first want to ask yourself.

What to Consider When Deciding Where to Purchase Life Insurance

Despite both being a means to a similar end, purchasing life insurance online is a different experience from working with an agent directly.

From the amount of energy you need to invest to the costs and timeline, these are a few aspects to consider when it comes to purchasing life insurance. 

• How much work do you want to do?
• How quickly you need coverage?
• Do you want to avoid being pressured?

How Much Work Do You Want to Do?

Working with a life insurance agent, sometimes referred to as an agent broker, means that they take on the brunt of the work for you.

Rather than having to spend hours researching and comparing companies and rates yourself, the agent is responsible for doing this for you.

While it sounds like the least stressful method for purchasing life insurance, you’ll want to keep in mind that you’ll be completely at the mercy of the agent.

The options presented to you will be based exclusively on their findings, but if you’re a busy individual, the appeal of having the burden of endless comparisons can be alluring.

Carefully consider what level of convenience you’re looking for in order to better understand whether purchasing online or working with an agent is the better solution for you.

How Quickly Do You Need Coverage?

Working with a life insurance agent rather than going through an online marketplace almost always extends the timeline it takes to get coverage. Though, it varies on a case-by-case basis.

Some insurance brokers may require you to meet with them in person or by phone to outline your needs so they can get to know your situation better.

From there, they’ll take your information and go shopping to compare which options are best before presenting them to you.

You’ll then need to do some work yourself by comparing the options presented. You’ll need to make sure you’re getting the coverage you need.

In essence, you’re going to need to approve all of the work that your insurance agent has done to ensure everything is correct.

If you need to modify coverage, there may be a back-and-forth, which can also extend the timeline. Though potentially a more thorough and tailored experience, the delay in coverage can be worrying.

For quicker coverage, you may consider opting for life insurance online. Oftentimes, consumers can receive a quote in just minutes after plugging in details.

Depending on the provider, you may also be able to chat with a representative from the insurance agency for assistance on demand.

If You Don’t Want to Feel Pressured

In most instances, a life insurance agent will provide their services on a commission basis.

Because of this, there is potential for the rare unethical life insurance agent to push more coverage than you need in order to increase their commission amount.

By carefully researching agents to find a reputable one that fits your needs, you can help to eliminate the chance of this happening.

When you choose to apply for life insurance online or simply shop and compare, you help to minimize the chance of encountering an unethical agent.

The Bottom Line

Finding and purchasing the perfect life insurance policy for your needs is a highly individualistic task. Depending on your comfort levels, you might consider working with an agent to do the heavy lifting or remain in charge by utilizing online marketplaces.

Shopping around online is a growing trend amongst Americans who are looking for a more streamlined way to purchase life insurance. This method allows you to learn about different options at your own pace and keeps you safe from potentially bad insurance agents. Regardless of which method you decide on, be sure to do thorough independent research.