Do web-only life insurance policies and annuities offer pared-down options?

Thanks to modern technology, it isn't difficult for people to find insurance policies that will suit their needs, lifestyle, and budget. As a matter o fact, insurance customers now have a choice of purchasing their policies either by going to an agent, purchasing their policies online, or over the phone. There are now policies offered by insurers that are only available on the web.

Major pulses can be offered by web-only life insurance policies. Coverage can be offered cheaper and faster, and customers won't have to visit an insurance agency to purchase them, which also means that this method of purchasing can save time. However, your choice might be limited. You might be better off going to an agent if you want your policy to have a variety of features on your policy or annuity.

Variety in regard to policy features isn't offered in some internet-only life insurance policies. Whole life, variable universal life, and variable life require more explanation than some web sites provide because they are more complex life insurance products. That's probably the main reason why insurers limit their online offerings to policies that are understood easily.

Arthur, Fliegelman, vice president and senior credit officer at Moody's Investors Service, says, "A lot of these products that agents sell have every bell and whistle you can think of. To sell online, you want a nice, streamlined, simple product."

Keep in mind that you can purchase annuities that are exclusive to the web in addition to life insurance. Nevertheless, there are drawbacks. Here are some features that are not available on web-exclusive annuities:

• Long term care riders
• Guaranteed minimum income benefits
• Bonuses
• Death benefits (beneficiaries would receive what the annuity holder had put into the contract)

Just because online annuities don't have many of the features that regular annuities have, there is one advantage. With online annuities, you have the ability to make an unlimited number of transfers between funds and sub-accounts which is considered a necessity for many consumers out there.

Robert Wooley, Louisiana's acting Insurance Commissioner, says, "We're glad to see understanding is on the rise. However, it's still troubling that while two-thirds of adults feel they have the right amount of insurance, only one-third seem to fully understand what they have."

Before purchasing a policy online, it is very important to know exactly what the policy has to offer so that there will be no unexpected surprises down the road. You can't contact an insurance agent and ask the agent to explain what a certain policy will do. You have to do the research and understanding yourself. Make sure that you know what you are purchasing.