Shopping for insurance online can be a very pleasant experience or it can be a complete nightmare. Let’s take a second to discuss and mention the do’s and don’ts of online life insurance shopping. Most people when looking for life insurance go about shopping for it the same way as they do car insurance. Instinctively they feel that the way to start is to get a price quote. Be careful, as this can be dangerous and here’s why.
Most websites that have the word “Quote” or “Quote’s” in the name, are selling the information you fill out to sales agents. Most shoppers want a list of quotes to be emailed to them when they fill out the simple online form so they can review the quotes in peace without feeling pressured by an agent. Little do they know that the personal information they filled out in the form is then sold to as many as ten different insurance salespeople. The salespeople then call the shopper in the attempt to earn their business. So within 24 hours they receive as many as ten phone calls from ten different agents all claiming to have the best products. This can be very overwhelming and it’s our experience that most potential insurance buyers are not pleased with the experience.
If you are able to find an insurance carrier who you think you may want to contact, make sure you know what company they represent. The reason being is this: If you call up an agent who only sells brand X insurance, (a captive agent) than they can only recommend that you buy brand X insurance. Captive agents may have a bias opinion when giving their recommendation, and may not be looking out for your best interests. Examples of captive agent companies are; State Farm, New York Life, and All State. These are all decent companies who have their place in the industry. Just know that the agents whom sell their products are not allowed to sell outside of that company. It’s fair to say moral character may get in the way when addressing the question “Is this really what’s best for my needs?”
If you go to an independent agent who sells multiple lines of insurance, you have a better chance of finding a non-bias agent. Due to having a wider selection of products to choose from they will have a better chance of fitting the product to your need vs. fitting your need into their box of their products. You should shop the captive agent salespeople as well, but realize going into the conversation that if they find themselves not having the best product they may still push the sale which inevitably is a compromise of moral character. Personally, that is why I became an independent agent, so I never need to find myself in that situation.
Lastly when looking at insurance companies there are certain criteria we recommend you adopt as your own. We recommend you only do business with companies who have been around at least 100 years. This proves that the company has positioned themselves to weather any economic storm that may lie ahead. Secondly, work with companies who have at least an A+ rating from A.M .Best A.M. Best is a large third party independent reporting and rating company that rates an insurance company on the basis of the company’s financial strength, operating performance, and ability to meet its obligations to contract holders. (A+ is the second highest rating out of 15.) Lastly the customer service you find from both the agent and the company itself are very important. We encourage you to call the company up and see how long it takes you to reach a real person to speak with.
Think of it this way, if something were to happen to you, how much trouble would it be for your significant other to handle the insurance claim?
