Everyone always wants the best rates.
Term life insurance is no different.
Thanks to the new world of online
quoting and shopping, the holy grail of
best term life insurance rates is now
available. We may not have eternal
life yet but at least we can sleep well
knowing that we have the lowest rates
for term life. Let's look a little
closer at the tools available to make
this happen and how to tell if you're
getting the best rates.
to get too Macroeconomics 101 in an
article about life
insurance but getting the
best rates is really a function of
information in our business. It's
not like supply and demand enter the
equation and you can buy a cheap policy
because the carrier made too much of
them and no else is buying them.
It doesn't work this way. Probably
the first thing to tackle is what
exactly is reflected in the pricing of a
life insurance policy.
The price of a life insurance plan
essentially reflects risk. It's
the price of risk that you are paying to
keep the policy in effect. If the
risk of a person in a given age band,
area, gender, etc is the same then why
would rates be different from carrier to
carrier? Shouldn't they be
essentially the same? First of
all, risk is a probability and as much
as life insurance carriers like to think
they can pinpoint a given risk, it's
still just an extremely refined and
educated guess. They may have
estimated too high and thus the rates
are higher to you the consumer.
They may have estimated too low and the
rates are lower to you (but likely
higher to subscribers to follow).
This is part of the equation...just a
inherent ambiguity in the future that
they are trying to guess.
Some carriers may also just be more
efficient at running their business or
they may even be trying to "buy the
business" by under-pricing their
product. This can have
ramifications for their future financial
That being said, how we can be sure we
are getting the best life insurance
rates on the market? Let's go back
to our initial topic of information.
If you, the consumer, have all the
possible plans, carriers, and rates at
your disposal and the guidance of a
broker who is impartial, then
you are well on your way to best rates
available. Let's break down these
First is having all the information.
Some carriers are just better run.
Others may rate better for a certain age
band, area, or gender...not to mention a
dollar amount. One carrier may not
like large life insurance policies such
as $1m plus while others feel confident
about this range. It may even be
their specialty. A carrier may
have had extraordinary claims experience
with their plans and increase rates to
compensate for this. They may have
over-compensated and will have to adjust
when the market tells them "no thanks".
There's a whole host of reasons for
discrepancies in pricing but as long as
you can comparative shop the various
options, you'll get the best rate.
We don't quote just one or two carriers
for this various reason. It's
absolutely not in our interest to have
you pay more. You're more likely
to find other rates and plans somewhere
cancel the life
policy you have with us.
We would rather you find the correct
(translated best rate with a solid
carrier) through us and be a satisfied
customer. A decade ago, it was
almost impossible to present all the
major carriers and plans. Brokers
naturally narrowed the selection to a
few and carriers would only show you
their plans. You're missing a lot
of that critical "information" we
online term life
insurance quote will
automatically parse the many plans out
there to find the best-priced life plans
for your given demographic information.
With this one-stop option, we have
addressed the "information" piece of the
equation as well as the impartial term
life broker side. You are now in
the driver seat and here are the keys.