Buying Insurance Online
Have you seen the online lures to buy insurance online? Guaranteed issue. Instant approval. A $million of coverage for as low as $50 a month? Click on just one and watch how fast your feed gets polluted with these ads!
Is it a good deal? Is it that easy? Can I still get it even though I have major health issues? Let’s look at all these questions to see what we can find out!
Something I have told my clients for years is “you can’t buy Life Insurance at Walmart!” You need to find a good, independent Financial Advisor or, as most people do, wait until one of us finds you! I don’t shop at Walmart’s much but maybe, just maybe, you actually can buy life insurance at Walmart. If you can and you have seen it, leave a comment below!
What I have learned is that you can buy almost anything at Costco. Including Life Insurance! Not 100% certain they still do but I know for a fact that they did in the past. I had to check it out. Upon further inspection, it was a Manulife plan. The only option available was a five year term. This means your premium would increase in cost every five years! It was also “Simplified Issue”. This means that you only have to answer a few questions such as; Have you been told by a medical professional that you only have 6 months to live? Answer yes to this one and you are out of luck. In more ways than one! It also means that it will be more expensive than normal issue insurance an advisor may recommend. I have never sold a five year term policy to anyone. Not sure what need would fit that coverage.
Typically, the online offers that include coverage amounts, typically in the $500,000 range or $50,000 to $100,000 range if the ad targets seniors, for really low premiums, would only apply to very healthy individuals ages on the lowest end of the age spectrum. Truth is, if you are even considering buying insurance this way, it is because you probably have issues that you are pretty sure will impact your ability to buy insurance.
The risk in trying to buy insurance online is a very important consideration. If you give it a try because you have some issues (nothing too serious) and just hope to get coverage, it could completely backfire on you. If you were to get rated or, even worse, declined altogether, you have now severely limited your ability to buy insurance the old-fashioned way, from an advisor.
Most advisors that come across clients with health issues or other insurability issues (there are quite a few) know that they might have difficulty getting their client insured. The good news is that we can usually find a solution. As long as you have not jeopardized your situation online, there are a few ways that I can be sure to get you covered no matter what your situation is. (except for the six months to live question) If you have health issues, including Cancer, I can get you insured. If you have health issues that are not too bad, I can get you insured. Maybe even at standard rates, if you go to the right company!
At the end of the day, all you want to do is get coverage in place at a fair price without too many headaches. Beware of the online offers. They are designed not to insure you at those fantastic rates. They are designed to lure you in. This is not the way to do business. Promise high but deliver low. Just remember before you sign on the online dotted line, what they offered you in the first place that sounded so good and the risks involved in making a purchase this way.
My advice (I am an advisor, after all) is to speak with a professional who will take the time to evaluate not only your insurance needs but also, your insurability and what might be the best option available for you specifically!