There is no such thing as discount life insurance
By law, an insurance company is required to charge the same premium rates, for a given product, to everyone — no matter what agent or company they use to obtain the policy.
This is partly because not doing so creates an unfair marketplace for the consumer, potentially reducing service and information, which could then potentially affect particular groups, classes, or people in certain geographic areas.
It also can lead to a condition called adverse selection — where a certain risk isn’t properly accounted for, or fully paid for. Adverse selection — which is created by a variety of factors including discounts or rebates — can jeopardize an insurance company’s general account and also cause some people in the insurance risk pool to effectively be subsidizing others in the risk pool, and could ultimately lead to a company’s failure.
Buying Life Insurance Online
“Buying” life insurance online creates a perception of savings, and in many cases, deprives the buyer of the support from a professional who can effectively guide them, free of charge.
Sadly, online marketing of life insurance seems to give many people the impression that life insurance is a commodity that can be quoted, discounted, and obtained completely online and that there is no difference between companies or their products. Websites quoting premiums rarely reflect the reality for most folks by definition.
By reading the fine print on the various websites, you will find that the advertised quote is at the best possible rating — meaning, it’s someone with a near perfect medical history, optimal weight, no adverse family medical history, and with no chronic conditions.
This turns out to be a small portion of applicants… and no telephone representative, or even an agent, can determine the applicant’s actual rating; that can only be done by underwriters at the insurance company, which is issued after an extensive review of the applicant’s personal health history as noted by their medical exam report and lab test, as well as a copy of their medical record from their primary physician.
The process of obtaining a life insurance policy can take several weeks, and sometimes months with more complex medical histories, and many times this discourages the applicant from looking elsewhere when they feel they’ve been intentionally misquoted a rate (just so someone could capture their business and shut out other competitors, who may have been more realistic in their quoting.)
Seeking An Experienced Professional
It’s important to speak with an experienced, knowledgeable, licensed agent who understands all the factors in play. The agent can advise you on the various features or benefits that are built into one company’s policy that may not be in another’s. Your independent agent should be able to produce and review a VitalSignsⓇ comparison of the carriers he or she is recommending to you.
In the hands of an experienced agent, the reports on the various carriers can help guide your decision to a company you think is most suitable for your goals. This is where an experienced agent is your best ally, as someone who can provide valuable information and saving you time.
With a knowledgeable, experienced agent, you can get a realistic quote, given your personal and medical history. Your agent will also assist you in presenting all the relevant information so that the underwriters can give you the best possible rating.
And, many people are completely unaware that while working with the right agent will help your underwriting go more smoothly and get you the best possible rating and therefore lower premium, it is all done for the applicant with at no cost to them.
An experienced independent agent is a tremendous resource who can provide you with detailed, valuable information which will save you both time and money. Remember, an independent agent is licensed at a state-level and is uniquely expert in insurance laws. They are your best resource to getting the best policy to meet your needs.