The Truth About Life Insurance Quotes
We’re going to share an industry secret with you. A secret most life insurance companies would really prefer that people not be aware of. That secret of course is that when you ask for a price quote, the number you get is non-binding. What does that mean? It means that when you ask an insurance agent how much a life insurance policy is going to cost; the insurer doesn’t have to honor preliminary life insurance quotes. Once your application is submitted and they thoroughly investigate your medical records, and determine what health rating you qualify for, then and only then will they give you a genuine offer.
This is an important point. Because this is how life insurance companies market their products. They know that most people, and agents as well, will only comparison shop for the lowest of all possible rates. They assume that life insurance policies are all just the same generic product with no difference between what each company is offering. That is not really true. But to muddy the waters even more, there is no standardization for life insurance health ratings. Each carrier creates their own rating system, and there are no uniform qualifications between each insurer.
Health Ratings Are Not All Created Equal
A health condition that may put you in the “standard” category for one carrier, might be more acceptable to another carrier and qualify you for a “preferred” rating. However, if you only shop for the seemingly lowest price, you may be overlooking the company that might give you the better rating. What good does it do you to apply for coverage for coverage based on a quoted premium that you won’t qualify for?
Life Insurers Compete on Underwriting, Not Price.
Life insurance company marketing executives understand and count on this. They anticipate people going online and getting life insurance quotes and only applying for the coverage that shows them the “cheapest” policy. They will have a “super preferred” or “elite” heath rating to entice prospects to apply with them, even though only a minority of applicants will actually qualify for that “low cost” policy.
After enduring the hassles of the underwriting process, most people aren’t prone to starting over from scratch with a different insurance company. Consequently, they just settle on taking whatever health rating the underwriters offer them.
The Advantages of Online Life Insurance
With online life insurance, you will still be asked some questions about your health, and any medical conditions that you have, but there’s no para-med exam (no urine samples, no blood testing, and no needles!) that need to be done. The underwriter just goes by your answers on the application and verifies them with your health records stored on a central database (everyone has one whether you’re aware of it or not).
Plus, there is no Attending Physician Statement (APS) that needs to be ordered, which means the underwriting on your application can be completed in as few as a few minutes. This means that you will have a bonafide quote almost immediately to base your decision on. And if the offer isn’t acceptable to you, then you simply decline it. You are never obligation to accept any offer. In fact, you have an additional 30 days after you accept the policy to change your mind and get a full refund.
Get the peace of mind knowing your family’s future is taken care of.
Apply online for real suggestions and premium rates. Most policies issued in less than an hour.