For most who are shopping around for a life insurance quote, getting some life insurance prices and doing the research without speaking to someone is the ideal scenario.
Hey, I get it!
There's real emotion which often includes fear of getting sold, and we are aware of this at Insuranceopedia. That is what our website was created for: To help people do research on their own time.
Let's help you understand the ins and outs of getting a life insurance quote online — we're talking the good, the bad and the ugly.
Getting a Life Insurance Quote Online: The Good
The majority of our visitors are here to do some research. The best part is we have all kinds of articles about life insurance to help you understand:
- What is life insurance?
- Why do I need life insurance?
- What types of life insurance are there?
- How much does life insurance cost?
- Is term life insurance right?
Here's the good part: If you want to get a quote right now, you can. Use the life insurance quote comparison tool, or as some call it, life insurance calculator.
All you have to do is put in some necessary information, select the type and there you are. You will then see a variety of quotes from many life insurance companies. The quotes are in order from the lowest life insurance premium to the highest life insurance premium.
When you are ready to take the next step or have questions, you select the button, and request more information. Your information is emailed to a licensed insurance agent that is local to your area.
They can answer any questions you have, make adjustments and provide other options if necessary. With most life insurance companies in Canada, you eventually need to go through a life insurance agent to put a policy in place. That agent would also be servicing your policy in the future once in force.
Can I Buy Life Insurance Online Without Using an Advisor?
There are a few insurance companies that you can quote and apply directly online. These coverage are typically a form of guaranteed life insurance that don't require a medical. With these plans, they are usually a higher cost, but that's what you get when underwriting is limited or if you have health concerns.
A few insurance companies have an online platform that is done through advisors, but you can still get a quote and apply if you choose.
Here are two direct links to get a life insurance quote and apply online:
Just input your information and follow the steps. If you need assistance, there is a phone number or you can also set up a time to chat and go through together.
This program is when you want to protect your family financially to cover the mortgage. Just input your information about yourself and the mortgage you want to protect and three options will pop up. You can make adjustments to the coverage, as well.
I do see this evolving over the next few years when more insurance companies will have these online platforms. When they have them available, you will be the first to know.
Just make sure you subscribe to our newsletter to have everything conveniently land in your inbox.
Getting a Life Insurance Quote Online: The Bad
The Bad — Part 1
Here are a few bad things you might not know:
- How much life insurance should you have?
- Why do you need life insurance?
- What types of life insurance are available?
- What is the best type of life insurance that will suit your needs?
- What are the advantages and disadvantages of the types of life insurance?
We don't expect you to know these things. After all, you aren't a licensed insurance advisor. To get aligned with the right insurance program, those are the areas you should have some answers.
Don't worry — we have a solution for you.
Bridge Wealth Group has a life insurance needs analysis tool that will help guide you to answer these questions. When you complete the analysis, you can save the file for your records. This information will be needed at application time and is a great discussion tool for the advisor you work with.
The Life Insurance Needs Analysis Will Help Define:
- How much life insurance you need.
- Reasons for having life insurance.
- What's most important for you and your family
If you need some assistance in completing the analysis, you can click on the request more information button in the quote tool.
While you are thinking about the needs, it will be useful for you to consider what amount you can afford in your budget. Your budget will help align with what type and style of insurance will fit. It makes the process easier for an advisor to help you with the best options.
The Bad — Part 2
The next bad part is there are many choices of types of life insurance. Now typically, when you're getting it online, most people are just purely looking at the price, and that's not always a good thing.
The least expensive will be 10-year term life insurance. Whether that is the best solution for your long term would need to be determined.
What will be your plan if you need insurance after ten years?
There are more options for life insurance, such as:
- 15-Year Term Life Insurance
- 20-Year Term Life Insurance
- 25-Year Term Life Insurance
- 30-Year Term Life Insurance
- Term Life Insurance to Age 100
- Whole Life Insurance
- Universal Life Insurance
There's also the permanent life insurance options.
Permanent life insurance can sometimes scare people because it will typically cost more than 10-year term life insurance. Permanent insurance is another investment and a part of your asset class for your financial planning.
So, that's the bad part. But what's the ugly part?
Getting a Life Insurance Quote Online: The Ugly
Part 1: The Ugly — Medical Conditions
If you have a few medical conditions, not all insurance companies are equal. What I mean by that is they all do their underwriting a little bit differently. They all are going after a bit of different clientele, and they all have a diverse variety of questions in the way they're worded.
Blood Pressure Concerns
If you have had some concerns in the past with blood pressure, depending on how you answer questions, you could be rated. This means you will have a higher premium if approved. Some companies treat medical situations differently, and you could receive a policy potentially with no issue or rating at all.
To prevent getting a potential rating or being declined life insurance, you could go through our life insurance quote tool.
When you find something that you feel fits your situation, just hit the request more information button. When the advisor reaches out to you, you can discuss any potential health concerns. They can guide you to an insurance company that will fit your situation.
Let's use this example: A person using marijuana less than four times per week.
Maybe they just use it recreationally on the weekend. Some insurance companies will consider you a smoker even though you are not using any nicotine-based products.
If you are considered a smoker, the life insurance rates are anywhere from 30% to 60% higher than non-smoker rates dependant on your age, and you could even get denied a life insurance policy or rated.
If you had done your research you could've had one in place with virtually no medical and the pricing is reasonable.
Some insurance companies treat marijuana usage differently, while others might will treat you as a non-smoker and save you money on the insurance premiums.
An advisor can provide some guidance on the different companies in relation to marijuana use. For example: there is one insurance company that will treat you as a non-smoker, and you don't have to complete a blood profile or paramedical. This would be very ideal for some, and something that's unfortunately unknown by many marijuana users.
Part 2: The Ugly — Term Insurance Renewal Time
Let's say you just want to get some life insurance in place, but your budget is limited in the amount you can afford. In this case, you would purchase a 10-year term life insurance as it is usually the least expensive.
When the 10-year term life comes to renewal time, you will have a few options.
- You can accept the renewal rates as per the original application. These rates will be significantly higher than applying for a new life insurance policy. Still, you don't have to qualify medically.
- You can apply for a new policy. You are now ten years older, so it will be more expensive than the original policy. What happens if you develop a medical or health condition where you won't qualify, or you might be rated? You potentially might not be eligible for a new life insurance policy and will have to accept the renewal.
- You can exchange the original life insurance policy to a longer term life policy with no medical. Some insurance companies have these options, and some don't. Some can exchange up to 5 years and some up to 10 years. But you might not know this upfront. You also won't be aware of what you can exchange or convert to later on.
So that's the good, the bad and the ugly of getting a life insurance quote online. Ultimately, there's a life insurance quote tool you can use for free.
Use it and check out some prices and options, but don't forget to complete the life insurance needs assessment. When you are ready or have more questions, just click the button to get more information for the quote you want. An advisor can help you along the way by looking at your situation and help guide you to the perfect program.
The best type of life insurance to have will be the one you have in place before it is needed. We just don't know when that time is — Darrel Pendry