Before You Use Online Term Quotes
The internet has brought term life insurance sales into the 21st century. Each year millions of people go in search of term insurance quotes online by completing forms, and yet many of these people are unaware they may be paying more than necessary.
Consumers investigate the premuims online for a series of reasons. Many individuals feel more comfortable investigating online for quotes before speaking with an agent. Applying for life insurance coverage often consists of the applicant checking out price ranges first.
In this day and age, it is common for websites to serve as guides for life insurance applicants. However, never underestimate the power of an agent.
I recently took a look at several notable insurance websites that base their businesses among low cost carriers as well as the ability of an independent agent who opts for companies that are rated higher.
I learned the following:
Better health ratings, such as preferred best and preferred non-smokers, are generally also given to applicants that are healthy and under 50 years old. This is generally the case because many low cost carriers tend to be priced competitively for healthy, young applicants. A lack of major health issues does not stop applicants over 50 years of age from seeing a wider range of premiums than those under 50. Applicants with weight and/or health dilemmas may be offered more price ranges as well.
Oftentimes, online quote sites decide to focus on a certain number of carriers. Fewer carriers means a higher volume per carrier, which makes sense. Higher volume directly correlates to higher commission levels, along with a bonus.
In contrast, a large group of carriers are involved when it comes to independent agents offering coverage. As applicants grow older, the independent agent is likely to discover more options for the clients. This is due to underwriting criteria varying for each carrier.
Among the numerous advantages of purchasing insurance through an independent agent is their ability to locate competent underwriting advice before applying for coverage. More often than not, they have access to an underwriter at multiple carriers or an in house one. Using an independent agent gives customers the opportunity to choose from hundreds of companies. It helps the agent and applicant decide on a carrier, saving time and frustration for both parties.
When appropriate, the independent agent can go to several carriers on an informal basis with pertinent medical information and receive informal offers. This way, the agent can guide the applicant to the particular insurance company that examines their case in the most favorable light.
Another important distinction between online sites and qualified independent agents concerns some “out of the box” thinking. We recently replaced the whole life policy of a life insurance client of ours in Florida with a guaranteed universal policy. The need for cash accumulation was not present, therefore reducing his premium by nearly half.
Because we were aware of changes in carrier underwriting guidelines, one of our term insurance clients in Southern California was able to replace a 2 year old policy and save money while extending the guarantee period. Certain underwriting criteria will gradually result in improved ratings. Another term insurance owner in Texas replaced existing coverage and received a better health rating because we alerted him to the opportunity.
These are just a few of the value added benefits that a competent independent life insurance agent can provide.
