Life Insurance Prices!
How in the world can you tell that you are getting the most affordable and best Term Life Insurance Prices available when you are shopping online for your insurance? That is a great question and it sometimes is not easy getting the best rates and quotes for your term life needs. Well that is why were here to help you out, you see there are a few tips and tricks and some good ole common sense that you can apply so you make sure you get the best term prices right up front. Also pricing that sticks and doesn’t change after you get into underwriting and then you get an offer that is two or three times what you were quoted.
How are Life Insurance Prices determined?
The annual premium that you will pay for your policy is determined by the company and their actuaries. Every company for the most part will price there products based upon the following items below.
1.) Mortality and Expense Charges
2.) Persistency and Lapse ratios
Mortality costs is what the Insurance company charges you for the pure cost of insurance in the policy. Other costs that affect your price of insurance is the policy fees, administration and the companies overhead plus tax.
Overhead and expense charges!
These costs will include the following:
1.)Cost of facilities
2.)Data processing and equipment
3.)Employee costs and Labor
4.)Sales expenses (including sales commissions, marketing costs, sales offices etc)
The above items all affect the pricing of your term or whole life insurance policy that you end up purchasing from your agent or broker. If a company is well ran you most likely will get a cheaper policy than if you bought a policy from a company that has higher costs or more overhead. Conversely you want to choose a company that also has good customer service and picks up the phone when you call with questions.
The best thing to do is obtain quotes and comparisons from a company like ours, check the ratings of the carriers and speak with your agent about the quality of the company. You may choose the absolute most affordable and cheapest priced policy but you may sacrifice customer service or you may not get the best underwriting offer with your current health. If the expenses of the company are higher it may also have an effect on the cash value if you own a whole life or permanent policy. Please click here to find out more on the different types of Life Insurance Broker or agents that can help you find the best priced policies.
This may all be confusing but we are experts that are available to help you navigate through many of these confusing choices and questions so you can choose the best priced policy for you and your family.