Life Insurance Companies – How to Shop Online

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With the growing popularity of the internet and smart phones allowing us to shop online, there are an increasing number of businesses seeking to provide information, goods, or services.  Searching for your next life insurance policy is no exception.  It is important for you to know just what kinds of online companies can help you find the right policy.

If you’ve searched for life insurance online in the past, you’ve undoubtedly entered some sort of keywords in your favorite search engine to begin your search.  If you’ve entered these keywords in Google, the first 3 results at the top of your results page (within the highlighted box) are paid advertisements through Google.  The insurance companies pay Google for you to click through to their site (often upwards of $30 per click).  For them, it’s a simple return on investment (ROI) business proposition.  The remaining listings on the page are ranked based on a number of relevancy factors that Google won’t tell us.  Which brings me to my next point.

There are 3 general type of companies that compete for your business in the online life insurance world; 1) captive insurance companies, 2) lead generation companies, and 3) independent insurance brokers/agents.

Captive insurance companies are companies like Met Life, New York Life, State Farm, etc.  These companies sell life insurance exclusively through their own network of captive agents.  Since they don’t carry competitors policies, this tends to be the most expensive way for consumers to purchase insurance.

The second type of company specializes in lead generation and makes money by selling your quote request to one or more independent agents.  If you’ve ever filled out an online quote for term life insurance, you’ve probably experienced the results of this first hand – as many as 8 different agents calling and emailing you to sell you life insurance.  The two dominate players in this space are Bankrate and Quin Street.  Together these two companies own NetQuote.com, Insureme.com, Insure.com, and Insurance.com among others.  These companies pay Google millions of dollars annually.  They also recruit affiliates to put online quote forms on other sites.  These affiliates then take a cut as consumers fill out the quote forms.

The last type of company competing for your business online is the independent brokerage or agent.  The best ones have relationships with most insurance companies and allow you to see the best rates online, ranked by premium from lowest to highest.  These sites, like www.LifeInsuranceCompanies.com, instantly quote life insurance rates from nearly all the top companies. Then, if you choose, an independent agent will contact you and help with the application process.  Not only does this put the control in your hands but eliminates multiple agents from calling and emailing you.

If you know what kind of life insurance companies you’re dealing with, searching for life insurance online can be a rewarding experience.  Informed consumers often make better decisions leading to savings in time, money, and hassle.  Enjoy Life!

Life Insurance Questions – Viaticals and Life Settlements

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Question:  I recently heard about a company that buys life insurance policies.  I am in the process of selling my business and won’t need my life insurance policy any longer.  Is it possible to sell it?  Wynn – Breckenridge, Colorado

Dear Wynn:  Generally, there are two types of arrangements whereby a company buys a life insurance policy.  They are called Viaticals, and Life Settlements.  A Viatical involves the purchase of a life insurance policy from a terminally ill patient.  The idea is to allow the patient to live the remainder of their life more comfortably by providing them with an additional influx of cash while they are living.  A company buys their life insurance policy for an amount less than the death benefit and, in turn, they become the owner and beneficiary of the policy.  When the terminally ill patient dies, the company receives the death benefit.  Viaticals became popular when the AIDS epidemic was surging in our society.  In the right circumstance Viaticals can provide a win/win situation.  However, in the early years, the lack of regulation led to some unscrupulous activities associated with Viaticals.  One such activity involved life insurance agents conning people who were terminally ill to apply for insurance and lie on the application regarding their health condition.  Then they would wait to collect on the death benefit when the person died.  The Viatical industry is now more regulated which has given rise to a whole new industry; Life Settlements.  Life Settlements are not uncommon to use in your situation where you are selling a business and no longer need your life insurance policy.  The mechanics are identical to Viaticals whereby a company would purchase your life insurance policy from you and in turn they would become the owner and beneficiary.  Interestingly enough, all types of insurance policies including term insurance can be candidates for this type of arrangement.  However, Life Settlements can only be used if you fit a very specific profile.  Generally your life expectancy must be less than 15 years. Therefore if you are under 65 and in good health, chances are you don’t fit the bill.  Additionally, most Life Settlements will require you to have had some negative change in health status since the date you purchased the policy.  This tips the scale in their favor since the sooner you die, the quicker they get their payout.  It is possible that a Life Settlement could be used as a viable option to cashing out or letting your life insurance policy lapse if you no longer need the death benefit.  There are a hand full of companies that specialize in this area and I would be happy to steer you in the right direction once I know more about your particular situation.  Personally, I would have a hard time knowing a business is out there waiting for me to die so they can get their payout.  Enjoy Life!

This Q&A editorial has been brought to you by the editorial staff at www.LifeInsuranceCompanies.com.   For instant quotes that compare life insurance policies, their premiums, and ratings, visit Life Insurance Companies today!