February 21, 2024
Pros And Cons Of Buying Life Insurance Online
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The Pros And Cons Of Buying Life Insurance Online [2023 Guide]

Buying life insurance online is the modern way of conveniently organising your life insurance in your own time and space. It is quick and easy; you could be covered in under an hour!

It is the same process as buying a policy over the phone; answering a questionnaire that will provide key information about you, what policy and level of cover that is required, the difference is you fill out the questionnaire yourself at your own leisure.

Securing life insurance is important as it protects loved ones financially if the worst were to happen to you.

Continue reading as we explore the advantages and disadvantages of buying a policy online to see if it is a suitable method for you…

Pros And Cons Of Buying Life Insurance Online

Buying Life Insurance Online

PRO: It’s quick and easy

You’re inputting your own information which can make you feel more comfortable and at ease, especially if it is regarding personal medical history. After completing the application form and receiving their quotations (depending on personal circumstances), most candidates can secure a policy online immediately.

CON: It might not be straight forward if you’re ‘high-risk’

The process may become complicated on your own if you have some complex factors that need to be disclosed that could affect your premium costs. For example: if you have a pre-existing medical condition, have a high-risk occupation or take part in high-risk hobbies such as extreme sports.

PRO: You’re in control of taking out a policy

Meaning you can do this whenever is best for you. You can take as much time as you need to go through the application so you have plenty of time to decide what suits you best – ensuring that the policy you’re taking out is strictly what you want.

CON: You’ll need to do your own research

Typically, when taking out cover over the phone, you’ll have an agent who’s ready to answer your questions and provide information, whereas when doing this by yourself, it may be more time consuming to research the policy options that suit you.

PRO: Help is only a call away if needed

If applying for life insurance online and you get stuck at any point in the process, you can pause your application and pick up the phone to speak to an expert who can guide you through the full application.

CONS: Not all policies are available online

As buying life insurance online is a relatively new concept not all insurers offer all products online. Over 50 life insurance and whole of life insurance are two policy types that are not yet readily available online.

Some Top Tips When Buying Online

Tips for Buying Life Insurance Online

  • When buying life insurance online it’s important to know that you’re buying from a well trusted provider. A good indicator is by making sure you go for a provider who is Financial Conduct Authority (FCA) regulated (in the UK).
  • Each insurer will have a different underwriting process; therefore it is important to compare quotes to find an affordable premium price suited to you.
  • Do your research. When using an over the phone service, there is usually a professional agent who is able to provide information and complete the application for you, so make sure you have all the information you need to help you make the proper decision.
  • If you know how much cover you need, then buying life insurance online can provide you with a quick and easy way to secure a policy compared to other methods.
  • Consider writing your life insurance in trust which could help avoid/minimise 40% inheritance tax on a future payout.

Where Can I Buy Life Insurance Online?

Where can I buy life insurance online

Some insurers have recently started offering buy online services, you can usually get the process started directly through their website, through comparison sites (such as Comparethemarket and GoCompare) or through a broker.

For example, the UK’s largest life insurance broker Reassured now offer a buy life insurance online service. This is a hassle-free way to purchase a policy online without incurring any fees – the end-to-end process can be completed within just 15 minutes and just 23 clicks.

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