Instant Life Insurance Quotes & Problems
May give you an inaccurate price quote
Often ignore or omit cholesterol guidelines
May assume all companies rate your health identically
May not quote the most competitive companies
Won't have agreements with smaller carriers (lower rates)
Hire unlicensed company employees to answer your questions
Make higher commissions because of volume
View you as a one time application or sale
Have different agreements with each carrier, creating bias
May not be appointed as an agent for every company shown
May not explain riders (additions) or convertibility options
No advice about replacing your existing policy
May promise no phone calls (no follow up)
You will never speak to the same person twice
Your unique needs probably won't be addressed
May not let your know you're unqualified for a plan
Customers may not understand the fine print of each policy
Offers no opinion about each carrier
You may not have the time to go through a mountain of info
Companies do not verify application data you submit online
Details of different plans may confuse you
You have no insurance intermediary between you and the carrier
No info on the carrier's reputation
Underwriting requirements may not be posted
Availability of each plan may not be disclosed
In short, quote services are good money makers because they stream line the life insurance APPLYING process. With people wanting to make their insurance choice carefully, this may not be a process you want started in 15 minutes.
If you are perfectly healthy and are single, and have a good understanding of insurance terms and definitions, if may benefit you to use a quote service, and apply in a short period of time.
The underwriting process is the same for a perfectly healthy person using these quote services as a traditional agent providing personal service
Of course, since I am an insurance professional, my opinion is biased (towards the customer), but that's what I get paid for!
The insurance companies pay higher commissions to a quote service (than they would an gent providing personal service) because the carriers reduce their overhead by saving on paper, broker packages, underwriting and application forms. They also do not have to deal with agents calling the company (representing their clients).