Life Insurance Companies With Online Application Forms
Last updated: December 28th, 2022
Reviewed by
Grant Desselle
Licensed Insurance Agent
In-person versus online life insurance applications
Before online life insurance
Believe it or not, less than 10 years ago, it was commonplace to apply for life insurance like this:
- Ask friends or family who they use for life insurance
- Look up phone numbers for life insurance companies
- Call and set up a meeting with a life insurance agent
- Go to meet with the agent
- Research all of the options (usually by reading a lot of marketing materials)
- Sign a bunch of paper forms
- Wait, sometimes weeks or longer, for an answer
Now, getting online life insurance
Online life insurance companies have streamlined this process into three easy basic steps.
- Get a quote
- Compare companies
- Fill out the application
- Get instantly approved for life insurance
It doesn’t get much simpler than that!
Why buy life insurance?
Life insurance, whether term or whole, is a financial plan that makes provisions for when you pass away. The most common reasons people take out a life insurance policy are to repay debt, cover funeral expenses, replace their income, and safeguard their family’s future. Some insurance policies also have riders that provide for retirement and financial independence after a certain age.
Despite these potential benefits, only about 60% of people in the U.S. have life insurance. That means at least 40% of Americans could leave their loved ones in financial distress when they die.
Many different life insurance plans are available, each designed to meet specific needs, desires, sensibilities, and financial situations. There can be dozens of factors to think about when buying a life insurance policy, and that is why it’s important to work with a company that can answer your questions, ease your mind and offers you a tailored policy.
With so many plans to choose from and much to consider, it’s easy to see why some people prefer to discuss their life insurance needs with an independent life insurance agent rather than relying on the internet. Plus, some people aren’t comfortable making important purchases like life insurance on their computers or smartphone. While online life insurance isn’t for everyone, plenty appreciate the ease and convenience of buying coverage this way.
While life insurance is often a delicate subject, it’s one that most people will have to consider sooner or later. At some point, nearly everyone has to decide whether to buy a life insurance policy.
The Rise of Life Insurance With Online Applications
As of 2021, more than 750 companies were selling life insurance in the U.S. That might seem like a lot, but unlike the booming ’90s, the industry had been decreasing at a steady pace. Still, the U.S. has the largest life insurance market in the world. It’s a solid industry that is constantly improving and optimizing the services it offers.
When insurance companies started selling life insurance online, the option didn’t catch on immediately. Only about a third of baby boomers and millennials adopted this new way of shopping for life insurance, but among those who did, many commented on how the transition to shopping for insurance on the internet made it much easier to get more accurate information, compare policies, and make intelligent decisions based on research.
How COVID-19 shook the life insurance industry
Not too far into 2020, the insurance industry underwent a paradigm shift. COVID-19 made it necessary to transport consumer interactions, needs, and demands into a full-time digital platform. The industry had no choice but to fully commit to online life insurance without in-person medical exams or agent meetings. The public, caught up in the uncertainty and the life-threatening nature of the pandemic, finally had to adapt.
In a matter of months, over 80% of consumers had made the jump and were conducting transactions online. Life insurance companies were under pressure to modify their platforms to meet the growing demand for self-serve options. During this time, the industry allotted more than $571 million to software development and artificial intelligence (AI) technology. This investment paved the way for a more comprehensive approach to benefit automation, product advice, and security. Life insurance with online applications truly reached optimization.
The life insurance industry was far from the only market affected, of course. Essentially any company doing business with the public had to improve its online accessibility and give customers and affiliates a satisfying shopping experience on their computers, tablets, and smartphones. Americans shifted their mindset and made digital transactions part of their routines. They became more proactive and efficient in their spending habits. By eliminating the middleman, people found that they could save time while also having more control over their life, budget, and needs.
Changing habits
Statistics indicate that the move to online shopping has changed consumer behavior indefinitely. Attitudes about face-to-face encounters as a part of the shopping experience have evolved. Equally important, because of costs, efficiency, automation, and other advances, companies are promoting this transformation in commerce. Many businesses are finding that it’s no longer cost-efficient to conduct in-person transactions.
Most insurers took one of two routes to alleviate the pressure of the growing public demand for online life insurance. Either they scaled and transported their entire operation online, or they grew their operation and partially transported it online. Both have been successful in addressing consumers’ rush to embrace digital shopping.
Online life insurance companies are constantly investing in updating and enhancing their products and digital marketability, making it easier for customers to reap new benefits and achieve better technological control during the shopping and application process.
Despite all of this, some people are still reluctant to apply for life insurance online — or to buy life insurance, period. That can be particularly problematic for older adults.
Life expectancy rates for Americans have almost doubled in the last 160 years. Today, it’s not uncommon for people in this country to live well beyond their late seventies. Unfortunately, because of the strain on pensions and other factors, more than 13% of older adults have incomes considerably less than the poverty level.
Along with that, population numbers have skyrocketed. As a result, the insurance industry has had to rethink how its products work under the dual pressures of the digital revolution and increased life expectancy.
Most millennials have witnessed the struggles of older adults and understand the need to invest in an online life insurance policy as early as possible. This is why online life insurance applications are the way of the future.
Companies That Offer Online Life Insurance Applications
As noted earlier, the insurance industry has burgeoned since early 2020. Today, totally life insurance companies are steadfast and at their highest level of efficiency.
Insurist has teamed up with the best of the 100% online life insurance companies and can work with you to see which of these companies might be best suited for your circumstances. We currently work with these online life insurers:
More companies are constantly added.
Insurance companies are investing in three key areas, not only to fulfill their customers’ needs but also to achieve the goals of profitability and growth. These companies are focusing on efforts to:
- Personalize every aspect of their policyholders’ experience
- Develop flexible products and solutions that are unique to each client
- Invest in their teams’ skills and capabilities
Life insurance is shifting from mortality protections to targeted health management, a pivot in which technology will play a vital role by allowing customers to take a more active role in shaping their health.
Completely online life insurance companies are best for healthy individuals who know exactly what they’re looking for and want insurance coverage as fast as possible.
Research shows that as we grow older, we develop more anxieties and emotional issues when contemplating mortality. That’s not surprising. Although talking about matters like life insurance can be challenging, conversations with an expert who can guide you through your decisions can make them seem less daunting.
With all that’s going on these days, protecting the people you care about is more important than ever. Life insurance has never been easier to buy, and putting it off could be a costly mistake.
See what you qualify for by answering some health questions.
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Brian is the founder and CEO of Insurist and carries Life, Health, and Property & Casualty licenses in all 50 U.S. states. Since 2013, Brian has been a member of Million Dollar Round Table, a designation for the top 1% of financial advisors worldwide. Brian has been featured in Yahoo! Finance, Money.com, Entrepreneur.com, Life Happens, Forbes, MSN, and Good Financial Cents. Brian’s goal is to show customers the best products, the quickest answers to their questions, and provide expert advice.
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Grant's past experience includes work as a licensed sales agent for Hagerty Insurance. He has reviewed thousands of existing auto policies across the nation and issued hundreds of new ones on everything ranging from classic cars undergoing restoration to modern exotics and motorcycles.
