A growing popular way to find life insurance quotes online is to use a search engine like Google, Bing or Yahoo. You will not find a shortage of websites offering free no obligation quotes. There is really nothing wrong with getting life insurance quotes online as long as you understand the game that is being played. Unfortunately, most consumers do not realize they are in a game let alone how to play the game. Let’s explore the process.
The vast majority of life insurance quotes online are through what is known as lead sites in our industry. These websites are built strictly to gather your information and sell it to as many agents willing to buy online leads. Most of the agents have systems in place that as soon as your information is received their dialer is calling your phone number. I have seen consumers receive as many as 40 calls per hour from starving life insurance agents waiting to “sell” an application. It is like throwing fresh meat in the lion’s den, survival of the fittest. This is a great cure for loneliness, because your phone will ring for weeks as your information continues to be sold to agents buying “B” leads or recycled leads.
The site will provide you an accurate quote of the best rating possible known as best preferred rate. Here is the catch less than 10% of the population will qualify for this rate. This is set for an extremely healthy individual. So why quote it? It is less than half the rate of a standard quote, it is used to “suck in” the unsuspecting consumer to applying for coverage. This philosophy assumes by the time the consumer applies and has a paramed exam. A paramed examiner physically meets with the consumer to take blood, urine, height, weight and medical information. Waits for their medical records to be ordered and received by underwriting, which in most cases takes 4 to 6 weeks, the consumer will be at a point to just accept the much higher rate of standard which is over 60% of the population. The truth is there are different rates based on criteria of tobacco usage, build, life style and medical history. No one can predict a rate accurately over the internet or phone without seeing you or asking specific questions. If the agent states they can, RUN! Remember most will fall into the standard category. When you see Table rates, those are for people considered high risk due to life style or health issues. Each table will raise premiums 4% to 8% per rating. Once a person’s risk exceeds table 10, they usually are considered to be uninsurable. It will be very difficult if not impossible to purchase life insurance for that individual.
There are 14 different rating classes for life insurance:
Best Preferred Top 10% or Less
Preferred
Select Plus
Select Top 30% or Less
Standard Most 60%
Table 2
Table 3
Up To Table 10 Then Uninsurable
Again there is nothing wrong with getting life insurance quotes online as long as you realize your information will be sold. You will be bombarded with phone calls and emails for several weeks. The quote you receive will be the absolute best case scenario that only the top 10% of our population qualifies for life insurance premiums. Now you know the rules of the game, so you can play to win. If you would like to avoid this process, talk to friends and family and use a referred trusted independent life insurance agent and avoid the headache all together. Good luck!
“It’s like the Wild West, the Internet. There are no rules”.—Steven Wright
Image by Stuart Miles at www.freedigitalphotos.net
Tim Wilhoit is owner/principal of Your Friend 4 Life Insurance Agency in Nashville, TN. He is a family man, father of 3, entrepreneur, insurance agent, life insurance broker, salesman, sales trainer, recruiter, public speaker, blogger and team leader with over 26 years of experience in sales and marketing in the insurance and beverage industries.
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