Getting an Instant Term Life Insurance Quote:
A Closer Look
When shopping for term life insurance, you may see offers
for “quick quotes” or forms for getting an instant
term life insurance quote on the Internet. And, while these
instant life insurance quote calculators can be useful for
getting a ballpark estimate on what you may pay, it takes
more than a quick quote to get an accurate rate. Among other
things, you’ll need to speak to a licensed agent who
will gather an in-depth profile of your health history, learn
more about your coverage needs, and arrange for a free medical
exam (a requirement for medically underwritten life insurance).
Quick quotes: a first step in the process
Companies often engage consumers with an instant life insurance
quote or quick quote that is based on very little information
about you. The fact is, the initial estimate is merely a preliminary
step in the process. Ron Harris, president of Matrix Direct
(www.matrixdirect.com), one of the nation’s largest
direct marketers of term life insurance, points out that every
accurate term life insurance quote requires a discussion with
a licensed agent and the completion of a medical exam. “People
get a quick quote and think it’s accurate, or very close.
But it often isn’t. They must still talk to a professionally
licensed agent and take a brief medical exam to get an accurate
term life insurance quote. It can be an unwelcome surprise
to think the rate is going to be one thing, then find out
later in the process that it’s higher.”
Rate classes: the standard that determines
how much
you will pay
Prior to insuring, life insurance companies assess the likelihood
of someone dying. They consider things such as medical history,
weight, genetics, tobacco usage — even recreational
interests (e.g., a scrapbook hobbyist is a lower risk than
a skydiver). They weigh these factors and arrive at your “rate
class,” which determines what you pay. Most insurance
companies have four basic rate classes for non-smokers and
two for smokers. For example, the very best rate class for
non-smokers is “Preferred Plus” (sometimes called
“Premier”); the next best rate class is “Preferred;”
followed by “Standard Plus” (sometimes called
“Select”); and finally “Standard.”
Depending upon your age and the amount of coverage and term
length you are seeking, the cost differential moving from
just one rate class down to the next can be significant. For
example, a man 45 years old who is seeking $500,000 of coverage
for a 20 year period, could pay one-third more
if his rate class was identified as “Standard Plus”
vs. “Preferred.” Increases like these may represent
hundreds of dollars a year. While a licensed insurance professional
can take into account the many factors necessary to know you
individually and to find your rate class, instant life insurance
quote technologies do not gather this depth of information.
Identifying your rate class — and premium
Medical exams pinpoint certain aspects of your health situation
to determine the exact rate class. A simple blood test and
urine sample measure cholesterol levels or screen for problems
such as diabetes, liver or kidney disorders. Talking to a
licensed agent can help to get a more accurate picture of
lifestyle factors that are part of your profile. All of these
data points are used to identify your rate class and ultimately
your premium. “Sometimes premiums end up the same as
an instant term life insurance quote, sometimes higher, sometimes
lower. Until all the information is collected, there’s
no way to know the exact premium,” Harris says.
The more time an insurance professional takes to learn about
you, the better off you will be-- not only by helping to identify
your accurate rate class, but by providing the information
you need to determine the appropriate amount of coverage for
your situation and the length of time for which you will want
to keep your policy in-force.
Matrix Direct: We’re here to help
Matrix Direct is staffed with licensed insurance professionals
who are ready to assist you with your term life insurance
quote. Conveniently available by phone, our team of friendly,
knowledgeable agents listen carefully to your specific objectives,
ask the right questions, provide straightforward information,
and guide you through the application process. Over one million
people have contacted Matrix Direct for assistance with their
life insurance needs. It’s simple enough. Just visit
www.matrixdirect.com
whenever you’re ready.
Copyright ©2005 by Matrix Direct Insurance
Services. All rights reserved.
