All too often people will simply go online, type in “life insurance” and apply with the first company Google presents. The problem with this approach is he or she is probably choosing a life insurance company instead of an agency. A company will offer one option, whereas an agency will offer multiple options. And just like anything else in life, the more options you have, the better your chance of getting the best deal.
The Truth About Life Insurance
Life insurance, in most cases, is not something that you can automatically buy. Life insurance is something that you have to qualify for. Life insurance health classifications and rates are determined by an insurance company. Those rates are then submitted to, and approved by, that particular state insurance commission.
From there, an application will be reviewed by an insurance company underwriter who will ultimately make a decision regarding whether or not an application will be approved and at what rate it will be approved at. Regardless of who submits the application, the process and cost will always be the same. This is true because of the strict regulations set by the individual state insurance commission.
So you may ask yourself:
“If everyone offers the same rate, what difference does it make who I go with?”
And the truth is, if you are young, healthy and in great shape, it probably doesn’t matter who you choose as your carrier. These clients simply need to find an agent that works with reputable companies, does a thorough needs analysis and be done with it. In these cases, the agent essentially works as an “order taker”, assisting the client with the application process.
But what if you aren’t necessarily:
- all that young,
- or maybe you’re taking some prescription medications,
- or you have some pre-existing medical conditions…
…well then, things get a bit trickier. It’s in cases like these that you truly need an independent life insurance professional that will be able to examine your file and see which carrier would be the best fit for you. Because while it is true that your rate will be the same no matter who submits your application, it’s the experience of the agent/agency that will know which carrier will offer you the most favorable rate class. And that means big savings for you.
Here are just a few examples of how some carriers are better than others in certain situations:
- Most carriers would consider a 5’9” male, weighing 222 pounds a “standard” risk. However there are a few carriers that would consider that same individual a “preferred” risk. By knowing which carrier will provide the better rate will save this client hundreds of dollars each year.
- Let’s look at tobacco use. Now not all carriers view tobacco use the same. Most carriers will give a client a tobacco rating if the client has used any nicotine product within the past 12 months. There are, however, a few carriers that will view cigars, chewing tobacco, electronic cigarettes, etc… differently. Some life insurance carriers will also provide additional discounts for those who have recently quit smoking altogether. Knowing which company to apply with will save this client hundreds of dollars each year.
- Diabetic cases: Does the client have type one or type two diabetes? Is the client using insulin, taking pills, or is their diabetes controlled by diet? Rates for these clients can vary significantly from carrier to carrier. In some cases the client particulars regarding their diabetes could mean the difference between being insured or being denied coverage. Why risk being declined? Talk to an expert today such as the professionals at TermLife2Go.
- Family history of cancer or heart disease: some carriers will penalize you for your family history, other carriers won’t consider family history when considering what rate class to offer. Which carrier are you applying with? Does your agent have the freedom to pick and choose which the carrier that will perform the best for you? Independent agents, such as the agents at TermLife2Go, do have this freedom.
As you can see by these examples, there are a ton of factors that go into which carrier will provide an individual the best possible coverage. Which is why at TermLife2Go we help you understand your options so you are able to intelligently choose what the best option for you and your family is. Our unique quoting software allows our agents to quote dozens of different carriers at once and also identify which carriers will best meet your underwriting needs. This is how we differentiate ourselves from our competition and how we save you money.
So what are you waiting for? Just give us a call to see just what we can do for you!
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