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If you’ve been wondering whether you should buy life insurance online, you’re not alone. A lot of people need life insurance during important stages in their life. We’ll cover the main reasons why people get insured and how to accomplish that easily online at Quotacy today.

Why people buy life insurance online

Who are the most important people in your life? Whose face flashed in your eye? Your dear friend’s or beloved pet’s? A business partner’s or your lover’s? A child’s or your life partner’s?

Protecting the people we love

People buy life insurance online to protect those they love from financial hardship. It’s natural. You don’t want the people you love to suffer—especially if you would die unexpectedly. It happens unfortunately.

Many clients share with us that they are shopping for life insurance because someone in their family is terminally ill, getting quite old, or a close friend’s parent died way too young. These life events trigger them to investigate buying life insurance online.

» Compare: Term life insurance quotes

Just got married. Just had a baby.

A lot of people first consider buying life insurance when they get married or have a baby. Some couples end up buying a policy and some don’t. According to LIMRA, 40 percent of people in the USA wish their spouse or partner owned more life insurance.

Why?

Most people are dependent on their partner’s income to cover the basics in life. Having children adds a big emotional responsibility and financial responsibility to a person’s life.

While you may be happy living a simple life as a single person, your kids or life partner might not be as minimalist as you. So, our costs overall tend to go up when we’re partnered up or have kids.

Kiddos and money

To raise a baby up to age 17 costs on average $233,610 (2015) for a middle-income ($59,200 to $107,400 pre-tax income) family with two children. These statistics are for married couples compiled by the USDA.

That $233,610 price tag doesn’t include the cost of her higher education. That’s easily another $200,000 (or more) depending on where your child goes to college.

Here’s a cascading waterfall of baby-related expenses that parents face:

  1. Birthing costs for baby.
  2. House for baby.
  3. Care for baby.
  4. Car to transport baby.
  5. Food, clothes, and toys for baby.
  6. Education for baby.
  7. Healthcare for baby.
  8. Entertainment for baby.
  9. Vacation with (or to get away from) baby.
  10. Celebration (birthday parties to wedding day) for baby.
  11. Inheritance for baby.

» Calculate: Life insurance needs calculator

Life insurance for parents

The cost for all of this is spread out over the course of a lifetime, but sometimes we wake up to realize that we want insurance against bearing all of these costs alone. A 2016 LIMRA study states:

One in five households with children under age 18 are uninsured. […]

Of those families who have no life insurance coverage, 73 percent recognize they need life insurance and 62 percent say they would be in immediate financial trouble if a primary wage earner died.

If you’re planning a family, it’s good to research your options regarding life insurance for parents. We’ve put together a great list of resources here.

There is no doubt that getting married or having kids (or adopting a child) is one of the biggest reasons that people buy life insurance online at Quotacy.

If you wish to buy life insurance online, here’s a simple how-to guide no matter what stage of life you’re in.

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Life insurance for career hobos

Maybe you’re not a hobo, but many of us are wandering from job to job in the digital age. Whether you consider yourself a digital nomad, happily working the gig economy, or an entrepreneur, many of us are no longer fully-employed in a corporate job with a traditional benefits package, including group life insurance.

Part of taking good care of yourself as a freelancer is to buy life insurance online that will go with you as you move from gig to gig.

Group life insurance from an employer typically won’t transfer with you to your new job.

Buying additional coverage voluntarily in an employer’s group plan may make sense if you’re very young (in your 20s), but the closer you get to age 50, know that your plan rates will jump dramatically as group life insurance plans overall tend to be priced at a higher rate per $1000.

If you’re switching jobs often, we recommend that you compare your quotes and buy life insurance online via a broker like Quotacy.

You most likely will find that you can buy more term life insurance coverage for less money by comparison shopping online rather than purchasing it through you employer’s group life plan.

For anyone who intentionally works 6 months full-on to take 3 months off to travel, this is an important way to ensure that you’re covered in the gaps when you’re happily unemployed according to your own life plan.

Can I buy life insurance online if I’m unemployed?

Here are a few quick tips on on how to buy life insurance online if you’re temporarily unemployed or between jobs. Read our full article here.

How to buy life insurance online if you’re unemployed:

    • Demonstrate your potential for future employment – Share your resume with the life insurance company you’re applying with to demonstrate that your unemployment status is potentially short-term.
    • Prove your financial know-how – If you have a track record of being financially stable and a good credit rating, the underwriters for your life insurance may view your temporary unemployment more favorably. Your Quotacy agent can include records from your savings or investment accounts to bolster your application.
    • Apply for less coverage and buy more later when you’re employed – Applying for a lower coverage amount while you’re unemployed makes sense. Once your income increases, buy more coverage. It’s better to have some coverage than none at all. Learn more about laddering (owning multiple life insurance policies) here.

The big 5-0

Since we’ve mentioned that group life insurance plan rates tend to increase when you turn age 50, we would be remiss not to mention that this is true overall. It is wise to buy life insurance online before you hit the big 5-0, if possible.

Average 20-year term life insurance rates (age 50)

Term Insurance Quotes for Healthy, Non-Smoking 50-Year-Old Male
Insurance CompanyCoverage AmountTerm LengthMonthly Premium
Banner Life$250,00020 Year$40.85
Principal$250,00020 Year$41.96
Protective$250,00020 Year$41.50
Pacific Life $250,00020 Year$41.44
AIG$250,00020 Year$42.73
Prudential$250,00020 Year$45.50
Haven Life$250,00020 Year$43.50
United of Omaha$250,00020 Year$46.16
SBLI$250,00020 Year$51.68
John Hancock $250,00020 Year$57.13
Lincoln Financial $250,00020 Year$65.84

You may look at these monthly rates and feel that they are fairly affordable. That’s great. Know that the age you are when you first buy life insurance online is the age that your monthly (or annual) premiums will be locked in.

Look at the rate table below to see for yourself how the amount you’ll pay to buy life insurance online will jump in price once you hit age 50.

Average 20-year term life insurance rates (age 25 to 65)

Average Annual Cost of a $250,000 20-Year Term Life Insurance Policy for a Healthy Non-Smoker
AgeMaleFemale
25$169$148
30$173$153
35$183$163
40$244$211
45$361$298
50$542$418
55$853$634
60$1480$1069
65$2578$1841

To make sure that your family is protected and to do so for less money, if possible, it’s best to buy life insurance online before you hit the big 5-0. Understanding life insurance pricing can help you make better long-term financial decisions when you’re younger.

Final expense insurance covers end-of-life costs

Most commonly people buy life insurance online by getting quotes for term life insurance as it is the most affordable type of policy to own. Financial advisors like Suze Orman advocate that, along with other NAPFA financial planners.

Most term life insurance applications require a medical exam for approval. If your health makes it difficult for you to buy life insurance online, you can purchase a final expense life policy online to cover anything from leaving an inheritance to paying for your funeral or burial.

The death benefit from a final expense policy may be used at any funeral home in lieu of purchasing a burial policy that must be used at a specific funeral parlor. Many families prefer not to be locked in to making arrangements at only one funeral home.

This type of life insurance product goes by many names:

  • final expense insurance
  • burial insurance
  • funeral insurance
  • guaranteed issue life insurance
  • guaranteed whole life insurance
  • instant approval life insurance

No matter what you call it or the official product is called, it’s mean to be issues immediately once you fill out your application and pay the first premium.

If you are unable to buy term life insurance or whole life insurance online, then a final expense policy may be the best way to insure yourself and provide for your family.

» Compare: Final expense life insurance quotes

No matter your stage of life, we’re here to help you buy life insurance online. Contact us if you wish to have one of our life insurance advisors help walk you through buying life insurance online. We’ve got you covered.

About the writer

Headshot of Kate Thomas, Director of Inbound Marketing, at Quotacy, Inc.

Kate Thomas

Director of Inbound Marketing

Kate is Director of Inbound Marketing working on business strategy, SEO, and writing for QuotacyLife. Kate's gift is explaining complex financial planning and life insurance topics in a simple and direct way to help families become more financially savvy and empower themselves to make wise choices. She works with Quotacy's underwriters to ensure the financial tips shared in her blogs are spot-on and truly helpful to anyone researching the ins and outs of life insurance online. If you would like a topic to be covered in our blog, leave Kate a comment below or connect with her on LinkedIn.