Life Insurance Rates are Regulated by Law for Your Protection!
Life insurance rates are regulated by law! Without premium regulation, purchasing life insurance would be like buying a used car! The object of this article is to inform you and make sure you understand that. No insurance agent can sell the exact same insurance product for more or less than another. The insurance companies set the rates and are enforced by each states Department of Insurance.
You will only see a difference in premiums between one life insurance carrier to another which is perfectly normal competition. Purchasing any type of insurance product shelters you from the nonsense you will find for example on a used car lot. .
All life insurance rates are regulated by law for your protection. The insurance companies publish the rates. This means they do not vary from one agent to another for the exact same product. Rates vary between companies but never between agents.
Each state monitors life insurance rates closely
Life insurance companies do not take it upon themselves to design the product, set a premium for the product and then just start selling it. They have to present the product and its pricing to each states department of insurance to be approved and OK’ed to present to the consumer market. They have to do this for every state they plan to sell insurance in.
Regardless of what form of insurance you want to buy, there is only one set of rates. This process takes months on end for each product a carrier wishes to sell. If we did not have this type of regulation, the consumers would be totally confused and “taken to the cleaners”.
A life insurance companies rates are published by actuaries
The insurance company actuaries create their rates based on life expectancy statistics. Years ago the life insurance companies used to supply agents with rate books. Those rate books are thankfully history and now we use modern quoting engines which are always up to date. The high tech quote engines today can compare the rates from over 40 of the top rated life insurance companies in less than a minute. This give the insurance agents all the information they need to make a decision on which company would be the most cost effective for their clients.
Website ads to watch out for!
Did you ever see some of these life insurance websites and see a statement such as “Save up to 73% on your life insurance” or another percentage number for example? These ads appear on a number of life insurance agent’s websites and they are completely deceptive to say the least. This statement is meant to make the consumer believe that they can offer you lower rates than another agent.
This is simply a form of deception and false advertising to mislead the consumers to believe they can apply for “discounted rates” and nothing could be farther from the truth. The bad part about it is, this misleading statement actually works well for unethical agents. Many misinformed consumers sucked it up and bit the hook.
Finding the lowest rates begins with your independent agent
An experienced independent insurance agent can get you pointed in the right direction and help you choose the right product for your needs. Purchasing life insurance should always be a simple job when you are working with a knowledgeable agent or broker.
Trying to do the shopping by yourself will not work because of all the technical factors that you have to understand. Life insurance in reality is one of the most simple forms of insurance. Most consumers make it very complicated and confusing. That is why an agent is so important.
Insurers have their own specific premiums for each plan design they market
Some carriers are going to be more competitive that others in respect to face amounts, term periods, age groups, tobacco use and other variables. The premiums for life insurance for smokers can actually be over 300% especially for cigarette smokers. One carrier for example will have lower more competitive rates for smokers that another.
There is no such thing as any one company having the lowest rates in the industry. They all spend a large sum of money each year having statistics created which will answer many of their questions on how much they believe they should charge for each and every plan design for each age group.
Common causes of life insurance rates increasing
- Medical related health conditions – learn more!
- Hazardous Occupations – learn more!
- Dangerous hobbies & sports – learn more!
- Serious motor vehicle report violations
- Tobacco use (mainly cigarettes)
- Premature death Cancer & heart disease (parents)
- Credit history issues
Take your time and get to understand the many types of life insurance products available to you. Don’t let anyone rush you into buying life insurance either. We can help make the shopping for the best plan design easy and straightforward. We are always here to answer any of your questions and help you select the best policy for your specific needs and budget. Check out our let’s get started page for more usefull life insurance buying tips.
All the best,
We are here to help you with no cost or obligation. Take a moment to set up a time to discuss your life insurance needs.