Life Insurance Online: Think Twice Before You Click

    | March 13, 2024


    In a world where online shopping is the norm for everything from groceries to gadgets, it’s essential to recognize that purchasing life insurance online should be approached differently. While the internet provides a convenient starting point for research and rate comparison, selecting the right life insurance policy requires a more nuanced and personalized approach. Here’s why making smart choices in life insurance means looking beyond just online platforms:

    • The Limits of Online Shopping for Life Insurance: Unlike buying everyday items online, life insurance demands in-depth consideration. Online platforms can offer a broad overview of options and pricing but lack the depth and personalization crucial for such a significant long-term decision.
    • Why Direct-to-Consumer Models Fall Short: Direct-to-consumer life insurance models, while straightforward, often prioritize the insurer’s benefits over the buyer’s specific needs. These models lack the tailored advice and advocacy provided by an independent broker.
    • The Importance of Independent Brokers: After initial online research, consulting an independent broker is crucial. They provide access to diverse products and unbiased advice, filling the gaps that online platforms and direct-to-consumer models leave.
    • Personalization Matters: Life insurance isn’t a one-size-fits-all product like many online purchases. It requires customization based on individual circumstances, financial goals, and life plans. An experienced broker can craft a policy that fits your unique life narrative.
    • Adapting to Life’s Evolutions: As your life changes, so should your life insurance policy. Brokers play a key role in adjusting your coverage to reflect significant life events, something that a static online policy cannot offer.
    • Building a Relationship for Future Guidance: Choosing life insurance is the beginning of a long-term relationship, not a one-off transaction like most online purchases. A broker offers ongoing support and advice, adapting your policy as your life evolves.
    • Understanding the Underwriting Process: Grasping the nuances of life insurance underwriting is crucial. Different insurers have varied approaches to underwriting, affecting how they treat individual circumstances and health conditions. A broker can navigate these differences effectively, ensuring you find a policy that best matches your profile. This level of understanding is typically not available when purchasing insurance directly online, where the nuances of underwriting can significantly impact the suitability and cost of your policy.

    Opting for a broker’s expertise over the convenience of online platforms ensures that your life insurance choice is not just a transaction, but a well-considered component of your financial plan, offering peace of mind and security for the future. In the realm of life insurance, smart choices involve personal guidance and expertise, distinguishing it from the usual online shopping experience.


    All opinions expressed in this article are for general informational purposes and constitute the judgment of the author(s) as of the date of the report. These opinions are subject to change without notice and are not intended to provide specific advice or recommendations for any individual or on any specific security. The material has been gathered from sources believed to be reliable, however Telemus Capital cannot guarantee the accuracy or completeness of such information, and certain information presented here may have been condensed or summarized from its original source. PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RESULTS. Kovitz Investment Group Partners, LLC (“Kovitz”) DBA Telemus Capital. Telemus Capital is a division of Kovitz, a registered investment adviser with the Securities and Exchange Commission (SEC). Telemus Capital’s main office is located in Southfield, Michigan. SEC registration does not constitute an endorsement of the firm by the Commission nor does it indicate that the adviser has attained a particular level of skill or ability. Investment decisions should always be made based on the client's specific financial needs, goals and objectives, time horizon and risk tolerance. Current and future portfolio holdings are subject to risk. Risks may include interest-rate risk, market risk, inflation risk, deflation risk, currency risk, reinvestment risk, business risk, liquidity risk, financial risk, and cybersecurity risk. These risks are more fully described in Telemus Capital's Firm Brochure (Part 2A of Form ADV), which is available upon request. Telemus Capital does not guarantee the results of any investments. Investment, insurance, and annuity products are not FDIC insured, are not bank guaranteed, and may lose value. Any reference to an index is included for illustrative purposes only, as an index is not a security in which an investment can be made. Indices are unmanaged vehicles that serve as market indicators and do not account for the deduction of management fees and/or transaction costs generally associated with investable products. The S&P 500 index includes 500 leading companies in the US and is widely regarded as the best single gauge of large-cap US equities.

    Advisory services are only offered to clients or prospective clients where Telemus Capital and its representatives are properly licensed or exempt from licensure. No advice may be rendered by Telemus Capital unless a client service agreement is in place.

    Todd Wolfe

    Todd joined Telemus in November 2022 after 28 years serving in multiple roles in the insurance industry. He has been an Independent Insurance Agent, Brokerage Manager, and also Regional Vice President for two Fortune 500 Life Insurance Companies. Todd is a proud Alumni of Michigan State University and continues to learn as a student of the industry earning both his Chartered Financial Consultant (ChFC) and Certification in Long Term Care (CLTC) designations.

    Todd Wolfe
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