More than 2 million individual life insurance policies sold in 2008 were purchased through the Internet, direct mail or telephone. These ‘direct’ sales accounted for more than 20 percent of all life insurance policies sold that year, according to research by the Life Insurance Marketing and Research Association (LIMRA) and the Life Insurance Direct Marketing Association (LIDMA), of which QuickQuote is a member.
Why They Buy
The research findings also show consumers chose direct channels such as the Internet due to selection, price, and convenience. Respondents cited a good website as a top factor in their decision to purchase life insurance online.
“It’s exciting to hear more consumers are turning to direct channels such as the Internet to purchase term life insurance,” stated Tim Bain, President of QuickQuote. “We’ve known for many years direct channels, and the Internet, in particular, would become the method of choice for consumers looking to purchase term life insurance. Now we are starting to see that vision come to fruition.”
Automation of key elements in the term life insurance purchasing process has helped improve cycle time and convenience. Just a few short years ago, applying for a policy was done entirely on paper, which required mailing applications, physical signatures, etc. Today, we make better use of technology in the following ways:
- Online Application Forms – forms can be completed online or by telephone.
- Electronic Signatures – forms can be signed electronically, with no need for printing, mailing, etc.
- Electronic Submission – forms can be submitted to the insurance company electronically.
- Status Updates – underwriting progress can be checked online and in real-time.
- Electronic Policy Delivery – the newest automation to the process will be available from QuickQuote this summer!
While purchasing term life insurance online may not be as simple as downloading a new app or e-book, it’s certainly much better than the ‘old school’ way. And if your life insurance need is $500k or less, Non-Medical Term Life Insurance can be purchased in as little as 15 minutes, entirely online! You won’t find an app for that in the App Store.
Sources: LIMRA, LIDMA