These Web-enabled agencies differ from traditional agencies in that their primary goal is to draw traffic to their Web sites, which generally is done by multimedia advertising or by forming alliances with Bank and brokerage Web sites that also market insurance. Even though both sources operate as supermarkets for mutual funds, brokerage companies such as Fidelity Investments and Charles Schwab are attempting to brand their own insurance products. At present, it is unclear what direction banks will take in selling life insurance on the Internet. This is changing, however, as companies move more of their new business processing to the Web. Coming to Term Term insurance has been the life product most often sold over the Internet.
Term insurance is simpler in design than other products and lends itself to Internet selling.
The major players in the term insurance market offer extremely competitive rates. In most cases, the sales involve products that pay full retail commissions. Most of the large term writers have felt compelled to offer products on the Internet that are comparable to those offered through traditional agent distributors. They also offer comparable products to avoid distribution-channel conflict. Ironically, most Internet intermediaries require full commissions to cover their costs.