While the convenience of online insurance applications is appealing, significant drawbacks exist compared to working with an independent insurance agent. Avoid problems and ensure optimal coverage by speaking to an expert first with this article write by experienced independent adviser of Insurance Direct Canada .
1) Permanently Damaging Your Future Life Insurance Eligibility
Completing online applications without guidance risks negatively impacting your ability to qualify for affordable life insurance forever. Most applicants need more expertise on how medical diary affects life insurance eligibility and premiums. They may fail to properly disclose health conditions, resulting in higher rates or a decline when the insurer reviews the application later.
This decline goes on your permanent MIB report to all insurer’s access. Just one decline makes qualifying for preferred life insurance rates extremely difficult in the future. You’ll overpay for potentially decades due to one mistake on an online application. Discussing your health history with an agent beforehand avoids inaccuracies that damage your insurability.
2) Losing Out on Exclusive Life Insurance Discounts and Rewards
Online life insurance applications rarely offer discounts that could provide substantial savings. However, agents can access special discounts, sponsored rates, and incentive programs that could reduce your premiums by 40% or more.
For example, agents can determine if you qualify for a preferred life insurance rate, saving you up to 40% over standard rates. Costco members get exclusive discounts of around 50% when applying through an agent. You lose out on all potential rewards and discounted life insurance rates by applying online without guidance.
3) Inability to Identify the Right Life Insurance Policy
Online applications only offer generic life insurance policies that likely don’t fit your specific budget and needs optimally. Picking the wrong policy can mean overpaying or having insufficient life insurance coverage for your family.
Agents leverage their expertise to identify the ideal type of life insurance and carrier based on income, planned use of proceeds, existing policies, and more. Having access to hundreds of products from dozens of top-rated life insurance companies gives them the flexibility to find you the right solution.
Without expert help, you may have a one-size-fits-all life insurance policy that leaves you overpaying or underinsured. An agent provides personalized guidance to find your situation’s optimal life insurance coverage.
4) Significant Delays Issuing Coverage from Lengthy Life Insurance Underwriting
Online applications promote speed and convenience. However, after submission, it often takes weeks as you wait for the life insurance company to underwrite and approve the application before issuing a policy. This leaves you uninsured until the entire underwriting process is completed.
Agents frequently have access to accelerated life insurance underwriting programs that approve policies within days by leveraging prescription histories and MIB data (Medical Information Bureau). Rather than waiting weeks for medical exams and lab results, these exclusive programs protect you quickly. Online life insurance applications can’t match the speed of agent-assisted accelerated underwriting.
Get Personalized Guidance from a Trusted Life Insurance Expert in Canada
Purchasing life insurance in Canada is a complex, high-stakes decision. While convenient, online applications mean losing out on personalized expertise and exclusive discounts only agents can provide.
To avoid future regrets, speak to an independent life insurance agent first. They will guide you to the ideal life insurance policy for your specific needs and budget while saving you money.
Should I apply for life insurance online or through an agent?
Working with an experienced independent agent is highly recommended over applying online. Agents can save you money through exclusive discounts, make sure you accurately disclose medical history to protect your insurability, identify the optimal policy for your needs, and get coverage issued faster.
How much can an agent save me on life insurance?
Agents have access to discounts and preferred rates that could reduce your life insurance premiums by 40% or more compared to online applications. Costco members, for example, get 50% off when applying through an agent.
Will applying online damage my ability to get life insurance later?
Yes, mistakes or omissions on online applications can lead to declines that damage your ability to qualify for affordable life insurance in the future. An agent helps you avoid this.
Don’t online apps issue policies faster than agents?
No. After online submission, it can take weeks or months for underwriting and policy issue. Agents often have access to accelerated programs that approve policies in days without the long underwriting delays.
