Helping folks purchase affordable life insurance products in all 50 states has enabled me to speak with many consumers everyday. Quite a few people I converse with share a mutual misconception about life insurance premiums. Many consumers actually believe that insurance premiums vary from one insurance agent or broker to another. Many feel that the more they shop the more they might save. This would be as if they were buying a new Sunbeam toaster or a new Sony flat screen television. Nothing is farther from the truth due to the fact that all life insurance premiums are regulated by law.
Let me rephrase that, all insurance rates are regulated by law. Regardless of what form of insurance you want to buy, there is only one set of rates. These rates are published by the insurance companies actuaries. First, the rates are published by the carriers and then your states Department of Insurance reviews them. If each states department of insurance officially approves them, they can be published and offered to the America’s consumers. If you are looking for accurate and immediate life insurance quotes, you will find them on our website’s quoting system. It if free for you to use as much as you would like.
This misconception was created by people witnessing thousands of other goods and services that have variable pricing between sellers. The auto industry is the most common area of sale that people are aware of. Insurance premium regulation is an absolute must in the United States.
No one can sell the same exact policy for more or less than another.
Just image if the insurance industry operated like many of the others. The american consumers would be playing “let’s make a deal” with some salesman over price. You would feel like you were in a Ford dealer haggling over a price. Nobody would ever know if they paid a fair premium or were raked over the coals. The statistics show that over 40% of intended new car buyers stop shopping because of the haggling involved.
Many consumers are taken advantage of because of their lack of skill in negotiating so these people end up pay more than they should for the same product someone else pays. We can thank our lucky stars that the insurance industry has set the standard for fair sales practices. Between the insurance carriers and your department of insurance you have no such thing as variable pricing.
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? Such statements as “Save up to 73% on your affordable life term insurance”. Another one I see is “protect your family now and save up to 70% on your term life Insurance”. They usually 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 will see these on TV and show up all over the internet. We believe in offering the best online life insurance quotes with no “dog or pony show”.
Some of the others will use phrases such as “we have the rock bottom lowest premiums”. Another is “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.
In reality the premiums for a specific plan design and face amount are the same across the board. Premiums never vary from one agent to another and this holds true in all states. High risk life insurance also works the same way. A person applying for life insurance with medical conditions can pay more than a healthy person but that is normal.
Your states Department of Insurance enforces this regulation. This protects 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. 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. Also including their 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. 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.
Finding the best online life insurance quotes in not like shopping for a new Sunbeam toaster.
The one concept that these agencies have in common is to influence the consumer market to believe premiums are negotiable. 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. Any agent that tells you they can save you more money on the same product is violating the law.
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 updated on a regular basis. The insurance carriers and the quote engines are updated just like clockwork to insurance accurate premiums. When you see rates show under “standard”, preferred, or “super preferred” rate classes. They are always 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. A quick and simple pre-screen is necessary to make that judgement call. The quoting engines are a great way to review the plans pricing from one carrier to another. There is more to it than that if you want to get serious about what your premium. Naturally, everyone is looking for low cost life insurance.
If you have health conditions, we always suggest a pre-screen to get an accurate idea of the outcome. This can be done before you apply so there are no surprises.
Our office does not “throw numbers” at a consumers looking for rate quotes. We always like to know the specifics of the application so we can give them accurate rates. These would be rates they deserve to see, not rates that would be displayed in a “perfect world”.
Everyone’s health history is different and that is why it takes the training and experience. A life insurance agent has to guide their client through the complete process. They also have 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 consumer would never know if he or she is paying too much money. You can find more information on how life insurance rates are regulated by law by contacting your Department of Insurance listed on their government websites. There are many ways the agents can find the very best life insurance rates for their clients. It all revolves around putting in the effort to choose the most applicable company and the best health classification for their client.
Don’t hesitate to call us 7 days a week with any questions you may have with no obligation what so ever.
Thank you very much for taking the time to read this article. I hope it has shown you how the government has provided you with the protection to regulate insurance rates. Read our “about us” page to learn more about us and our business. Take a moment to read some of our other informative blog posts.