Understanding what your life insurance quote means is essential to having a good experience when you apply for a policy.
Misunderstanding creates confusion, and confused consumers are more likely to skip buying this important financial protection.
Here is what to expect (and what not to expect) from your life insurance quote.
What a Quote Can do for You A life insurance quote simply provides an estimate of what your policy will cost, before any in-depth information is known about your health and risk classification.
Because the insurance company has not completed underwriting at the time that you get your quote, the outcome may change after your application has been turned in.
What a Quote Cannot do for You A life insurance quote is not a promise that you will be approved for a policy, or that you will be approved at the same rate that you were quoted.
Remember, anyone can use an online quoting system to get a quote for any amount or rating class.
For example, a 70-year old man with heart disease and diabetes could get a quote for the best rating class without disclosing any medical history, but he will not be approved for the best rating class after the insurance company reviews his medical history.
Your Quote May Differ Insurance agents cannot approve your policy, nor can they promise your policy will be approved at a certain price.
Only the life insurance company can approve your policy, after a formal application has been submitted and underwriting review has been completed.
Wait until you have a policy in hand that clearly states the price before agreeing to purchase.
Most applicants are approved at the same rate they are quoted, however this is not always the case.
Here are some common reasons why your policy might not be approved at the same price as your quote.
An experienced life insurance broker works with several insurance companies and will be able to help you find the best company to apply with.
Misunderstanding creates confusion, and confused consumers are more likely to skip buying this important financial protection.
Here is what to expect (and what not to expect) from your life insurance quote.
What a Quote Can do for You A life insurance quote simply provides an estimate of what your policy will cost, before any in-depth information is known about your health and risk classification.
Because the insurance company has not completed underwriting at the time that you get your quote, the outcome may change after your application has been turned in.
What a Quote Cannot do for You A life insurance quote is not a promise that you will be approved for a policy, or that you will be approved at the same rate that you were quoted.
Remember, anyone can use an online quoting system to get a quote for any amount or rating class.
For example, a 70-year old man with heart disease and diabetes could get a quote for the best rating class without disclosing any medical history, but he will not be approved for the best rating class after the insurance company reviews his medical history.
Your Quote May Differ Insurance agents cannot approve your policy, nor can they promise your policy will be approved at a certain price.
Only the life insurance company can approve your policy, after a formal application has been submitted and underwriting review has been completed.
Wait until you have a policy in hand that clearly states the price before agreeing to purchase.
Most applicants are approved at the same rate they are quoted, however this is not always the case.
Here are some common reasons why your policy might not be approved at the same price as your quote.
- After underwriting review, the insurance company came to the conclusion that your risk classification was different than what was used for your quote.
- You had an age-change after you got your quote.
- The insurance company updated their rates after you got your quote, but before your policy was issued.
- Your quote was obtained with erroneous information, such as an incorrect birthday or the wrong gender.
An experienced life insurance broker works with several insurance companies and will be able to help you find the best company to apply with.
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