When you first start looking into purchasing life insurance, it can be difficult to decide which type of life insurance to get and where to get your policy from.
When shopping for term life insurance, you’ll want to get multiple quotes to help you find the right type of policy at the best price. Quotes can vary widely from company to company, so shopping around can save you a lot of money.
Many people will use an insurance agent to help them with this process.
However, it is possible to get coverage directly from a life insurance company without the involvement of an insurance agent.
Some companies even offer term life insurance with no medical exam required. Direct term life insurance is an option to consider if you do not wish to use an intermediary, such as an insurance agent or broker.
So exactly what is direct term life insurance?
Here in this article, we will explain what direct term life insurance is.
What Is Direct Term Life Insurance?
The fundamental purpose of term life insurance is to protect against financial loss for a predetermined period. The periods range from 5 to 30 years and these policies often come in 10, 15, 20, and even 30-year options. There are numerous variations of term policies, including those that are level, graded, increasing, and decreasing.
These items are consistently the most cost-effective while also providing the greatest coverage.
At its core, direct term life insurance is a type of term life insurance that is sold online and allows policyholders to interact directly with their insurance provider. A direct term life insurance policy is one you purchase directly from one provider.
Most companies that offer direct term life insurance let you submit your application for a policy online. You will start by entering basic information about how much coverage you want. Then, you will share some information about your health and lifestyle.
An underwriter will review the information you have provided about your health, and they may ask you to schedule a medical exam. After the underwriting process, you will be given an offer for insurance. You must sign your policy and pay the initial premium to activate your coverage.
What Type Of Insurance Should You Get?
Direct term life insurance is an option worth considering if the ability to shop at your own pace, submitting an application online, and working with a specific insurer are some of the most important factors to you when purchasing a policy.
However, working with an independent insurance agent or broker is the best way for the vast majority of people to locate a policy that meets all of their requirements.
Independent life insurance brokers and agents work with various life insurance providers. As a result, they know which companies are more accommodating toward particular health conditions and lifestyle choices. They provide advice that is free from bias regarding the insurance company and plan that will best meet your budget.
In conclusion, direct term life insurance is a type of term life insurance marketed online and allows policyholders to engage directly with the insurance provider.
