December 16th, 2009
Numerous websites offer so-called preferred rates when quoting online life insurance rates. Many of these websites use preferred rates as their default premium in their instant quote calculators, even though less than 30% of all applicants qualify for these preferred rates.
Numerous variables can disqualify individuals from online carriers' preferred rates. These variables include:
1. Prior tobacco use
2. Height and weight
4. Blood pressure
5. Driving record
6. Family history
7. Past substance abuse
8. Hazardous sports and occupations
The difference in premium between preferred and standard rates can be significant. Case and point, a 40-year-old, male non-smoker would pay $62.55 a month for 500,000 of term 20 coverage under standard rates with Equitable life. Whereas, the preferred rate would be 44.55 a month.
When online providers give the preferred rate up front, they hope to lure customers into the application process. Another problem with the online carriers is that they do not have a clear understanding of which carriers best meet risk profiles, (i.e. some insurance carriers specialize in working with diabetics or people with blood pressure or cholesterol histories.)
It's the job of the insurance broker, to best match the insured with the most appropriate plan and insurance carriers for a client's own indvidual needs and medical situation.
For more details, please visit our Term Life Instant Quote Calculator, or contact us at 1866-899-4849.