Problems and Drawbacks of Quote Services:
- May give you an inaccruate 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 comissions 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 convertibilty options
- No advice about replacing your existing policy
- May promise no phone calls (no followup)
- 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 prefectly healthy and are single, and have a good undertanding of insurance terms and definitions, if may benefit you to use a quote serivce, and apply in a short period of time.
The underwiting 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).
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