Today in the information age the first place consumers tend to go for research is the Internet. In the current time of wanting everything in a single instant is there any surprise that insurance carriers and brokers would design platforms for quoting and applying for insurance online.
Both Insurance carriers and marketers have been offering quoting aggregators as a way to both trim down cost of advertising and reach consumers as they begin there online research and shopping. So the big questions is: Are the premiums provided from these quoting websites accurate and are these rates you can realistically expect to obtain for your specific age health and weight class.
Are Carrier and Broker Website Quoting Platforms Accurate?
When you go to search for life insurance online you will see many sites suggesting lowest rates and 40-70% savings. Well the truth is you can save big by comparing rates from among all the carriers as rates for the same coverage can vary from one carrier to the other. Your best bet is to shop a broker/agency who offers the broadest choices from multiple carriers and products. The rates are provided in real time direct from each carrier. In other words when you plug in your age, weight and answer “no” to any serious health issues then yes you are getting an accurate estimate but only if you’re in the right health class which may require more specific detail. A simple quote website is a good idea if your looking for a ballpark figure of what you might expect to pay. Rates are set by carriers and regulated by the state so rates will not vary from each broker/agency if comparing the same product and same carrier for the same search parameters. Most quote aggregator websites simply lump everyone into several rate classes depending on how many health questions are included in the quote form.
What are Rate Classes and Why are They So Important?
Rate classes are how life insurance company underwriters determine where you fall in the mortality risk. These carrier classes and underwriting guidelines vary from carrier to carrier and this is why an agent can be invaluable to a proposed insured by asking detailed questions and determining which carrier rate class will provide the path of lease resistance and lowest possible premiums.
Preferred Best or Super Preferred: You're impeccable when it comes to mortality risk.
Preferred: You're in good condition overall but perhaps you take medication or are a little overweight
Select or Standard Plus: You’re above standard health, possibly hereditary risk of cancer, heart disease in family, overweight or take a medication or two with good control
Standard: You're average, have several heath issues, previous health history or bad driving record or other higher risk issue like occupation, dangerous hobbies like scuba diving
Preferred Tobacco and Standard Tobacco: Smoking rates are usually significantly higher and have their own risk class even if healthy
Table Ratings: Table ratings are flat extras added to the standard rate for risk factors anywhere from 15-50% for each table level added typically measured in numbers or letter from 2-8 or B-H
Speed of Technology Meets Agent Pre-Underwriting
Agents today are combining quoting websites, underwriting platforms and telephone applications to pre-underwrite proposed insured for accurate rate class estimates and then submitting the application through a automated platform connected to all carriers, The agent can then quote specific to the clients health and direct them to the proper carrier and rate class for a formal application, order the in home health exam and make even the most complicated high risk life applications simple and fast, shaving days off the exam process and expediting the application through the underwriting process.
Website quote engines have their place in providing information to consumers online
However, to obtain the most accurate life insurance quote it is to your advantage to provide as much detail to a licensed life insurance agent who can research your health profile against the best choices of carriers and products. Insurance prospects, that open up about the details of their health profile and impairments if any, will receive a better indication of what final rate they can expect, expedite the approval process and policy issuance, reduce their long-term premiums, and prevent the worse scenario of being declined.
Christopher Beard is a life insurance agent who uses automation to simplify the consumer buying experience. He is the president of Trinity 1 Financial Group and works with clients select the right carrier for life and health insurance to insure approval at the best rates for there health and age.
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