What is online life insurance?

Online life insurance is an insurance product designed to pay out a lump sum to the family of a customer who dies during the term of the life insurance product.

Is online life insurance only online?

Online life insurance can be managed on the internet but will be typically provided by the same providers as standard life insurance.

Does online life insurance work in the same way?

Online life insurance works in the same way as standard life insurance. A customer will pay a fixed monthly premium for a set period of time, which will be set based on their health and lifestyle choices, and their age.

Customers who smoke, are older, have a history of illnesses in the family or are seen as unhealthy will be charged more because there is a higher risk they will die before the insurance term is up.

Is all online life insurance the same?

Most online life insurance is term life insurance, which will only pay out if the customer passes away during the term. Insurance companies are effectively gambling that the majority of customers will live past the end of their term, and that they will not have to pay out all the time.

Also available is whole online life insurance which works in a different way to term life insurance in that a customer will receive a payout whenever they die. The advantage for customers is that they guarantee a return on their investment, although this will be an investment that is substantially higher than a term life insurance one.

Another advantage of whole online life insurance is the ability to borrow money against the final life insurance pay out in later years. Customers who have paid off their mortgages, have children who have left home and have pensions their family can rely on may no longer need a life insurance pay out, so can borrow against that pay out and enjoy the money before they die.

Does online life insurance pay out in the same way?

Online life insurance will still pay out to a family in the event of death to the customer. That money will then be used to pay off a mortgage, pay for university or school fees, pay for funeral costs or simply to cover costs while the family get themselves back on their feet.

When looking for online life insurance make sure you fill out our enquiry form to get a life insurance quote today.