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By James Tobin
If you are wondering if there is more to choosing a life insurance quote than clicking on the carrier with the lowest monthly cost, you are in the right place. This article will run you through the considerations, other than cost, that may come into play.
You have probably figured out that once you have decided upon the terms you want to use for your policy application, and received the pricing from the instant quote tool, the next step is deciding on the carrier with which to apply.
The obvious easy answer is “the one with the best price”, and this answer is often the correct one. However, there are a few considerations that may affect that decision. Below, we will go over them point by point.
For applicants with a less than perfect medical history, this may be the most important question.
After all, a quote is not an offer of insurance. In order to receive an offer, your medical history will be analyzed by the underwriting department.
Knowing which companies prefer which risks is the whole ball of wax here. If you apply to the wrong carrier, the price you based the application on will almost certainly be wrong.
This is one reason that working with an experienced independent agent is important. If you have a history that includes health issues, or are unsure about the underwriting class you are likely to wind up in, please use the custom quote form. This will give you the best chance at an accurate quote that will match the offer you receive.
This issue of how an applicant with a checkered health history is advantaged by dealing with an experienced independent agent is explored in more detail on the site. If you would like to see a real life example of how this works , please click this case study.
There are several carriers that have sub par rating or no ratings at all. The life insurance help desk has limited the exposure of clients by only offering A rated or better carriers.
Nonetheless, if the higher rating is a deciding factor for a client, they may be willing to pay a few dollars more a moth for the higher rated carrier. We provide the financial ratings of all carriers we offer.
Underwriting turn times vary from carrier to carrier. While delays may be caused by a complicated medical history requiring an attending physicians statement or a second sign off due to the benefit amount. An independent agent can point you to the faster carries.
If getting your policy finalized fast,is very important to you, you may choose a slightly more expensive carrier or a non-med policy that is Jet- issued. These issues are discussed in more detail click here.
Life insurance riders are amendments to a policy that can be selected (often at an additional cost) to enhance the policy. Certain riders , which are not available on all policies, can be very valuable. below are some of the more common riders to consider.
Conversion Rider- A conversion rider allows you to convert an term policy into a permanent policy without proof of insurability. this can be particularly valuable in cases where your health has begun to decline. The cost of this rider is usually built into the policy and is discussed in further detail here.
Living Benefits - This rider, which is different from policy to policy, allows for the disbursement of up to 90% of the death benefit, if the insured is terminally ill. This rider is usually built into the policy but must be elected.
Disability Waiver- this rider allows for the waiving up premium payments in the event that the insured becomes disabled and is unable to work. This rider must be elected and comes with an additional premium cost.
Child Rider- The child rider allows for the coverage of any minor childeren upto a fixed amount (usually $50000) that will expire at the age of twenty one or end of the underlying term policy. however, this coverage can be converted to permanent coverage in accordance with the rider language.
Now that you have a better understanding to the question ”What’s Involved in Choosing a Life Insurance Quote?” you can see their are are many issues that are taken into consideration when choosing a quote/ carrier to apply with. For a more in depth discussion of these considerations, please see the deciding on the term plan that's best for you.
Thank you for choosing the Life Insurance Help Desk to read about choosing a life insurance quote. Should you have any questions, please feel free to call or contact us. We encourage you to continue with the steps in the process of getting a policy in force.
Jim Tobin is the owner of Life Insurance Help Desk, a Fairfield County, CT. life insurance agency. You can find him on LinkedIn and Facebook. Over the past 10 years, Jim has used his CFP-financial planning designation to help individuals with their life insurance needs. In addition to working with life insurance clients, Jim teaches ESL classes in his spare time. He resides with his beautiful wife Nicole and the 3 cats that rule their lives..
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