5 Reasons Why You Should Buy Life Insurance Online in 2023

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5 Reasons Why You Should Buy Life Insurance Online in 2023

With the New Year well underway, many people are starting to look forward to the goals and challenges they face this year. While many may be planning to quit smoking, lose weight or tackle accrued personal debt, one thing that may not receive the necessary attention is purchasing life insurance.

Life insurance is designed to provide your loved ones with a cash lump sum after you pass away. In return, you would pay a fixed monthly payment (or monthly premium) to keep this cover valid. Life insurance can last for a set period, or it can last for life, regardless of when the policyholder passes away.

While many may see life insurance as either a face-to-face business or something which requires a phone call, life insurance can now be secured online – and 2023 is the ideal year to make your purchase.

5 Reasons Why You Should Consider Buying Life Insurance Online in 2023

1. It’s more convenient

It’s more convenient

Instead of booking an appointment with a financial advisor or calling a life insurance provider directly, some providers/brokers now allow the option of accessing and completing a life insurance application and buying a policy online.

This allows you to complete the process at your own leisure and provides you with an element of control. Over the phone or in person, companies require this information to process your application and input the data themselves. This can take significantly longer unless you’re using a life insurance broker (such as Reassured) who can also source quotes for you from some of the UK’s top providers.

It can be stressful over the phone or face-to-face, and you may feel pressured by time to quickly complete your application. If this is a concern, it’s certainly worth utilising an online application form, if available.

2. You can do your own research

You can do your own research

While brokers can locate and source quotes which reflect your required cover, you may have already discovered the life insurance plan you wish to purchase. Securing it online can save time and prevent you from being swamped with additional quotes.

While some quotes may be beneficial, if you’ve already done considerable research, you may only receive quotes which you’ve already compared, or which aren’t as good.

Furthermore, while many companies can only help you make an informed decision about your cover, others work for commission. The last thing you want is to find the perfect policy for your needs, only for a salesperson to make you question your choice or sway your decision.

3. It’s safe (if you buy from an FCA-regulated company)

FCA-regulated company

If you’re worried about online safety, then ensure the company you are purchasing life insurance through is FCA (Financial Conduct Authority) regulated.

The FCA register is a free service available to anyone. Simply input the company or financial advisor you are dealing with, and if they appear, they will be FCA regulated.

If you still have concerns, then any reputable company will be able to provide you with their FCA number, which can also be checked on the register.

Many financial organisations also have customer service agents available, meaning that this information can be checked, and you have access to professionals who can offer help with an application.

Most brokers have a dedicated customer service team who can walk you through any steps in the application process if required. This means that help is available, even if you want to make the final purchase online.

4. You know what cover you require and why

You know what cover you require and why

When securing life insurance, the big thing you need to ask yourself is why do you need this coverage? It may be a contingency plan to cover a mortgage and the family home or your children’s financial security if the worst was to happen to you.

Whatever the reasons, you can then determine the type of cover you require. While you can receive help with making an informed decision, you may either wish to undertake your own research or have already determined the period and amount of cover needed.

There are four types of life insurance:

1. Level-term life insurance

Provides a fixed amount over a set period

2. Decreasing term life insurance

Provides a decreasing amount over a set period

3. The whole life insurance

Provides a fixed amount until whenever you pass away

4. Over 50s life insurance

Provides a fixed amount and lifelong cover, but only UK residents aged 50-85 are eligible

All four of these policies have fixed premiums and the payment would be made as a lump sum when you pass away – providing it’s within the terms of the policy.

Of these policies, only level and decreasing term life insurance are available to purchase online. However, this is only with a few providers as some companies do not offer the option of purchasing any life insurance online.

It should also be noted that if you have underlining health issues, or any other factors which could be considered high risk, your application could be rejected online. In this situation, it may be in your best interests to call a life insurance broker to see if a specialist insurer could offer you your required cover.

5. Prices are increasing for everything

Prices are increasing for everything

While we have covered why you should secure life insurance online, we have yet to discuss why 2023 is the optimal year to do so.

This is partially due to online services being fully developed, customer-friendly interfaces and internet speeds being quick in most areas.

However, it’s also because the UK is facing a cost-of-living crisis, inflation, and a potential recession.

With our passive income not stretching as far as it once could, it’s worth having a plan in place for your loved ones if the worst was to happen to you. Furthermore, with prices increasing and quotes becoming more expensive as you get older, you will find that taking out cover at a younger age can help you to save money (allowing you to lock in the cheapest premium for years to come).

Having that peace of mind in a place where your family are financially covered if something happens to you may not solve current financial woes, but it could help your family financially if they lost you and give them one less thing to worry about during the grieving and transition period.

Secure life insurance online – but only if you want to!

Not everyone wishes to secure life insurance online or have the internet skills to make the purchase – and that’s ok.

Securing and paying for life insurance is a long-term commitment and you may wish to speak to someone to help you with the process and make sure you get the optimal coverage at the best price.

The good news is that many life insurers and brokers offer both online and over-the-phone services. This means that whichever way you choose to secure life insurance, you can guarantee you can complete your application quickly and accurately.