Life Insurance Rates are Regulated by Law!
Many consumers actually believe that insurance premiums vary from one insurance agency to another and the more they shop the more they might save as if they were buying a Sunbeam toaster or a new Sony television. Nothing could be farther from the truth due to the fact that all insurance premiums are regulated by law. The rates are published by the carriers and then your states Department of Insurance regulates the premiums for the consumers protection.
This misconception was created by many advertising phrases found on the internet leading you to believe that insurance rates are negotiable.
The most important concept to remember is all life insurance rates are regulated by law.
Nobody can sell the same exact policy for more or less than another.
All Life Insurance agents use the same exact published rates!
Did you ever see some of these life insurance websites and see the message they are trying to get across to the consumer concerning premiums? Such statements as “Save up to **% on your affordable life term insurance” or “protect your family now and save up to **% on your term life Insurance” and display a numerical percentage of what you should expect to save. These are actually two phrases currently used by a couple of the big life insurance call centers your see on TV and show up all over the internet.
Some of the others will use phrases such as “we have the rock bottom lowest premiums” or “we have the lowest premiums” and the list goes on and on. This type of advertising is for all types which include term, universal life and whole life insurance quotes. Many of these types of websites claim they have the best life insurance quotes available when in reality the premiums for a specific plan design and face amount are the same straight across the board and do not vary from one agent to another.
Your states Department of Insurance enforces this regulation to protect you from unethical pricing tactics or who knows what you would be paying.
Finding the best rates requires work on your agents part. Pre-screening your application to utilize the correct company is crucial.
We will shop the life insurance market hard and to the extremes to get our clients the lowest premium, but this is done by utilizing the carrier that is offering our client the best and the most low cost premium on the market for our customers current health history, age, gender smoking status and lifestyle. The other main ingredient to the lowest premium is using the most applicable carrier that is offering the very best rate classification.
This is how we are able to save our clients a considerable amount of money on their premium versus our competition that simply uses the first company they contact to simply save themselves time but costs the client more money in the long run. It simply takes a lot of effort to truly look for the very best plan design with the absolute lowest premium. We do not save people money based on the fact we can just give them a lower price as if insurance agents were selling Chevy’s or Ford’s at a car dealership.
Life insurance premiums are not negotiable. Finding the best term life insurance is not like purchasing a Ford or a Sunbeam toaster.
The one concept that these agencies have in common is to influence the consumer market to believe premiums are negotiable and they can “get you a lower price” on your life insurance or any other insurance for that matter. The very simple truth is that all types of life insurance rates are regulated by law for your protection. There is no such thing as an agency “cutting you a better deal” or giving you some sort of a “discounted premium”.
Many people because of this actually believe if they shop the market long enough they will find a better price from some other insurance website or agency for the exact same product. Insurance carriers set the premiums which are then supervised and authorized by the state Department of Insurance. At BestChoiceLifeInsurance.com we never try to lead the public into believing this. But you remember the old saying “Caveat Emptor”, Let the Buyer Beware!
Life insurance rates are created by the companies actuaries and not by insurance agents or brokers.
The very simple fact is the insurance carriers have total and complete control of an applicants final premium when the underwriting process is all said and done. Quote engine quoting rates are 100% accurate due to the fact they are published by the insurance carrier and the quote engines are updated on a regular basis. When you see rates show under “standard”, preferred, or “super preferred” rate classes they are totally accurate for those rate classes if a person would qualify for them.
The key is to know what exact class is a person going to qualify for. This is going to take the help of an experienced agent to review their perspective client medical history in the form of a pre-screen to make that judgement call. The quoting engines are a great way to review the plans pricing from one carrier to another but there is more to it that that if you want to get serious about what your own premium would be if you actually apply. Naturally, everyone is looking for cheap life insurance.
If you have health conditions, we always suggest a pre-screen to get an accurate idea of the outcome, before you apply so there are no surprises.
At BestChoiceLifeInsurance.com we do not “throw numbers” at a consumer. We like to know the specifics of the potential application so we can give them the accurate rates they deserve to see, not rates that would be in a “perfect world”.
Everyone’s health history is different and that is why it takes the training and experience of a life insurance agent to guide their client through to process to be able to choose the correct carrier and plan design for their clients needs. If rates were not regulated by law, the industry would be in the same situation as buying a used car.
At that point the insurance buyer would never know if he or she is paying too much for the insurance product they purchased. You can find more information on how life insurance rates are regulated by law by contacting your Department of Insurance listed on their websites.
Feel free to contact us 7 days a week if you have any questions with no obligation toll free 800-897-5699.
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