About Term Life Insurance Quotes…some basics

Since changing focus from Health insurance to Life Insurance and speaking with 6-15 people daily, mainly those seeing a quote and “shopping”, some obvious trends and ideas people hold have become clear. This post is to set the facts straight.

First, what people want is a close and firm number as possible to make a decision.

Here’s two facts:

  1. From any one insurance company, for any given policy type, issued under the same medical conditions for the applicant, THERE IS ABSOLUTELY NO DIFFERENCE IN PRICE.

2.  A quote may be provided by a sales agent but it is at best an estimate of where the applicant will fit. It looks at ht, wt, age, and smoking status,  and possibly a general health picture. The sales agent then consults the various quoting references and offers a number.

Depending on the criteria the agent applied, that number can easily vary +/-10  or even 20 percent, leaving the applicant wondering “what’s going on?”, hoping for the best and lowest, and starting the application.

The process starts, and in many cases “locks up” the applicant. In way too many cases, the agent in this cut-throat, competitive business, will offer the lowest price.  Sometimes to get there, they will use valid health criteria but turn to a B rated company (vs A or A+) and the applicant does not even know to ask”what’s the rating of that company?”

Let’s say the quotes are all A or A+ companies. The application is taken, and is processed, returning to the prospect (YOU?) the final and official and ONLY GOOD number.  In over 50% of the cases, the applicant (YOU) is displeased, but accepts that number and the contract.  Why?  Because the process of applying is not enjoyable; a new application may require a new paramed.

Half my peers.. I call them “scum agents” to this regularly, and get away with it.  I will not lowball you.

Do you want max protection and get real numbers? Then apply with 2 or more companies. It costs nothing to apply.

Other tips: Make sure you are being quoted on the policies with the same features and benefits.

For any given amount of benefit, there may be savings by using a combination of different products.. see our main PAGE (not post).

If all agents offer the same price for the same given product,  how do you know what to do or how to have the best for your money? The answer is first shop with an agent who you feel might be trustworthy, and then second, who can offer and show you  a comparison of companies and rates… not just an agent with only 1 or 2 choices.

Thank you for reading.  Your comments to this post are welcome.