While purchasing life insurance through a fully online process may seem like a convenient and straightforward option, this approach often falls short when it comes to getting the best results. Many people are drawn to the ease of filling out forms and receiving quotes instantly, but these online platforms typically offer one-size-fits-all policies that may not align with their specific needs.
One of the most common myths is that online life insurance is always cheaper; however, without the guidance of a licensed insurance agent, you may miss out on important policy details or discounts that could save you money.
Working with a professional, such as through a trusted brokerage like SelectQuote, ensures you receive personalized advice based on your unique situation, including factors like health, lifestyle, and long-term goals. Another myth is that online life insurance quotes are fully accurate; however, without a thorough assessment and discussion with an expert, many online calculators fail to provide true, customized rates. A licensed agent can simplify this process, helping you choose the right policy that best fits your life. Read on to explore three common myths about buying life insurance.
Myth #1: Online Quotes are the Most Accurate
It’s easy to assume that online life insurance quotes are the most accurate and efficient way to secure coverage. However, fully online quote tools can often leave you with broad, generalized estimates that don’t truly reflect your individual life insurance needs. Here's why:
Lack of Detailed Information
Online quotes typically ask only basic questions, such as age, gender, and smoking status. They often don’t account for deeper, personal factors such as your health history, lifestyle, and long-term financial goals—details that can significantly affect your rates. These missing elements mean that online quotes can’t provide a clear, accurate representation of what your coverage should cost.
Overinflated and Rough Estimates
The rates provided by online quote forms are based on algorithms designed to give you a quick ballpark figure, not an actual price. These estimates often result in inflated quotes, which can make life insurance more expensive than it should be. The final price you pay after going through the full underwriting process with an agent is typically much lower than the initial online quote.
Lack of Guidance on Policy Types and Health Classifications
Online platforms can't explain the various life insurance policy options (such as term life vs. whole life) and how each could impact your premiums. They also don’t guide you through the complexities of health classifications, which are essential in determining your final rate. Without this guidance, you may inadvertently choose the wrong policy or miss out on discounts you qualify for.
Myth #2: Buying Life Insurance is the Same as Buying Home or Auto Insurance
Many people assume that buying life insurance is just like purchasing home or auto insurance, but this couldn’t be further from the truth. Unlike home or auto insurance, which typically involves more straightforward questions about your property or driving history, life insurance is a nuanced process that requires a deep dive into your personal health, lifestyle, and long-term goals. Life insurance products undergo an underwriting process that evaluates detailed information, such as medical records, lab results, and other factors that influence your premiums.
Because of the complexities involved in life insurance, it’s crucial to work with a licensed agent who understands the underwriting requirements and can guide you through the process. Online forms and quick quote generators may promise fast results, but they often overlook critical details and provide rough estimates that fail to reflect your true situation. Unlike home or auto insurance, where your needs are more standardized, life insurance varies greatly from person to person—making it unwise to rely on an algorithm that claims to offer a one-size-fits-all solution.
Myth #3: Online Quotes Save You Time
While online life insurance quotes promise speed and convenience, the fastest option isn’t always the best when it comes to securing the right coverage. Spending just 15 minutes speaking with a licensed insurance agent can yield more personalized and accurate results than filling out a quick online form. An agent takes the time to understand your specific needs, such as your health, lifestyle, and long-term goals, and can present you with tailored options that better suit you.
Though the online route may seem to save you time initially, it could cost you in the long run. If you end up with a policy that doesn’t meet your needs or offers inadequate coverage, you’ll be forced to start the search process over again. This could lead to wasted time, effort, and potentially higher premiums if you need to reapply.
Working with an agent doesn’t have to be a lengthy process either. At SelectQuote, our licensed insurance agents can compare quotes from trusted carriers in just 15 minutes using our proprietary technology. In some cases, if you qualify for no medical exam life insurance, you could even be covered by the time you hang up the phone. Ultimately, investing a few extra minutes with an agent can help ensure you get the right life insurance coverage in an efficient fashion.
SelectQuote Can Help You Find Affordable Life Insurance
At SelectQuote, our goal is to make sure you get the right life insurance at a price that suits your budget, without the confusion or ambiguity that often comes with fully online quote forms. Our experienced licensed insurance agents are dedicated to working for you, not the insurance carriers.
We prioritize your best interests, ensuring we don’t push policies you don’t need or overquote you for unnecessary coverage just to make a profit. We also take into all you need to cover, ensuring your loved ones are fully protected should something happen to you. This personalized approach can save you time and money while offering peace of mind that you're getting the coverage you need. With SelectQuote, you can receive customized quotes and find a policy that suits you—all in as little as 15 minutes.
