If you are shopping for life insurance remember this one fact. The agents have absolutely no control over the rates being charged. Only the companies do.
If the government ever did one thing right, it was regulating insurance rates to protect consumers!
Life insurance rates are regulated but don’t take our word for it, contact your states Department of Insurance
The object of this article is to inform you and make sure you understand that no insurance agent or agency can sell the exact same insurance product for more or less than another. The companies publish the rates and the rates do not change unless the carrier decides to change the rates themselves. You will see a difference in premiums between one company to another but that is just simple competition.
You will not see a difference in premiums for the exact same product with the same exact company between agents. Many consumers today actually believe that insurance is a negotiable product you can play “let’s make a deal”. The agents and brokers have absolutely nothing to do with the pricing of premiums and if one tells you they can. They should be reported to your states department of insurance & professional regulation.
Each and every state monitors life insurance rates and has to approve them before the products can even be sold
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. 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.
A carriers rates are provided to their agents and brokers through software or an online service
Years ago the life insurance companies used to supply agents with rate books. Those rate books are thankfully all gone and now we use modern quoting engines. The high tech quote engines today can compare the rates from over 60 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.
“Save up to 73% on your life insurance premiums”
Did you ever see some of these life insurance websites and see a statement such as “Save up to 73% on your life insurance”. This was and still is a statement that has appeared on a number of life insurance agent’s websites. 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. The bad part about it is this misleading statement actually worked well on quite a few saps who sucked this up and bit the hook.
As far as this goes, nothing can be farther from the truth. If you read any of this on a website go to another website so you are not mislead like these statements are trying to promote. Always remember, there is no such thing as discounting rates or offering sales prices. I always liked how they specifically used 73% instead of 70 or maybe 75%.
Securing the lowest rates of life insurance begins with working with an experienced life insurance professional
An experienced independent life 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.
All life insurance companies have their own premium structure for each plan design they sell
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. 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.
Don’t fall for any deceptive advertising stating discount percentages, this is just false advertising.
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 and simply lying to you.
Life insurance rates are created by the companies actuaries and not by insurance agents or brokers
The fact is the life insurance companies have complete control of an applicants final rates all the way to the point when the underwriting process is completed. 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 health rate classes if a person qualifies for them.
Popular causes of life insurance rates increasing
- Medical related health conditions
- Hazardous Occupations
- Dangerous hobbies & sports
- Serious motor vehicle report violations
- Tobacco use (mainly cigarettes)
- Pre-mature death Cancer & heart disease (parents)
- Credit history issues
Our final thoughts on this subject
When you plan on purchasing your life insurance, connect with an honest and reputable life insurance agent. You may contact us 7 days a week and evenings for all the help you need with no cost or obligation. Life insurance will never be a one size fits all product. 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.
Any good independent agent will make the shopping for the best plan design easy and straightforward. We are always here to answer any of your questions and helping you select the best policy for your specific needs and budget.
Make sure to download our free eBook and learn how to save money on your new life insurance purchase.
All the best,