Why compare life insurance policies online? We used to sit down with an insurance agent, have them patiently explain why their plan was best for us, and then choose to apply or pass. However, this process is time consuming and we are never sure whether the company representative presents us with the best plan for us, or who pays him the highest commission. So sensible people would take the time to meet with 3 – 5 brokers before making a decision. However, this took a lot of time for both the applicants and the insurance representatives who did not get the company.
Now don’t get me wrong. I think many people can benefit from the services of a qualified, professional life insurance agent. However, I think it’s best to do some homework before making an appointment. That way you’ll already have your questions prepared when you meet your real estate agent and have a good idea of the price range you’re planning to pay!
A good online quote service should be able to provide you with local quotes. New York will have a different rate structure than Texas, and different communities within the same state will also have different premiums. In addition, with a good system you must be able to compare quotes from multiple companies. In our own research, we found a $300 annual premium difference between the cheapest and most expensive insurer in our area. That $300 difference was for the same 40-year-old man who wanted a $100,000 term life insurance policy for 20 years. Take that $300 and multiply it over the 20 years of the policy, and you’ve got a premium difference of $6,000!
So you see that it pays to take the time to compare premiums. However, calling around or making arrangements with different insurers takes too much time. That’s why online quotation systems work so well! Simply fill in basic details once and then sit back and let life insurers provide you with competitive rate quotes! Some systems allow you to apply online if you choose. But even if you choose to take your quotes to a qualified life insurance agent, you’ll have a good idea of the policies available and you’ll have a good idea of how much that coverage should cost!
If you have a health condition or other situation that affects your rate, the quotes may not be completely accurate unless you can indicate so on the form. In that case, the company representative or broker can help you find the plans that work for you. They can tell you how your own individual situation affects your rates.
Again, I think many people will benefit from consulting a qualified insurance broker. However, I also believe that almost all people will do better by doing some homework themselves before getting ready to sit down and sign a long-term contract! Online quote systems can make that task a lot easier.