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Life Insurance Quotes Online, Know The Rules

Life Insurance Quotes Online, Know The Rules

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

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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.

15 Responses to Life Insurance Quotes Online, Know The Rules

  • Tim , Good advice as I have been on the end of some those calls for home loans also.

    Cliff

  • Thank you Cliff, the only upside is that you won’t be lonely for a few weeks.

  • Life insurance buyers learn the hard way after they apply and do not receive the rate they were quoted…we call this bait and switch! Good info Tim!

  • Jack, as always you are spot on. Thank you!

  • Thanks for continuing to add great content!

  • Thanks Tim, great article!

  • Tim, this is good example of Food for Thought. But don’t you think that everyone is out here to sell and earn something. And what I understand is that most of the sites always display a disclaimer that once you use our site, you give automatic permission to use your information to others.

  • Alok,
    If there is a disclaimer I am sure it is fine print and very long. Meaning a very small percentage of people would actually read a disclaimer. Certainly this country only survives and thrives on commerce. The true art of selling is not cramming products and services down one’s throat but making it enticing enough that the consumer wants to buy. Thank you for sharing.

  • Thanks for that article. I know about the problems for agents because I’ve been using those kind of leads–without much success. But I wasn’t aware that quotes are usually for the best possible rates–which, of course, doesn’t do anyone any favors. Besides repeated contacts from agents, another problem, as you certainly know, is that too often the phone #’s are non-working, or even for someone else. My recommendation to consumers is to contact 3-5 independent agents and ask for several quotes from each.

  • Fred, thank you for sharing your experiences as an agent. Just imagine how the client feels. You gave really good advice to the life insurance prospects out there. Much continued success my friend!

  • Buying leads is never profitable for the reasons stated. Do you really think that you will have exclusive leads that no one has seen in the past or will see in the future? These marketers try to get these leads to as many agents as possible no matter what they tell you. Save your money.

  • Good article, this is why I don’t buy leads

  • Thank you for the input Brian and Robert. I probably pissed off a lot of lead companies, but the truth is the truth. They have done this to themselves.

  • Let me help you make the lead companies mad.

    We’ve all seen their emails. The lead companies have “magically” located prospects sitting in their home with their checkbook in hand wanting to buy life insurance but not knowing how to do that. These prospects are just waiting for any agent to call them to help them out.

    Being the good guys that they are, the lead companies are willing to provide an agent with leads that no other agent has ever seen nor will ever see so that by just paying a few dollars, the agent can make an easy sale. What could be easier? Just dial and earn! Take a break every once in a while and order your new Ferrari!

    A more accurate picture is that these lead companies are trolling for lazy agents just sitting at their desks with their checkbooks in hand dreaming of making easy sales

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