Confessions of an Insurance Calculator
Posted by Lenny Robbins on Tue, Dec 06, 2011 @ 03:46 AM
If you've been thinking about getting life insurance to protect your family from financial difficulties, you may have looked at some of the online insurance calculators. However, when you plug in the information that is supposed to give you an idea of what you need and the rate you would get, you often get wildly different estimates.
Why Don't Online Calculators Work?
- Online insurance calculators are often skewed toward younger people, so the rates they give are generally nothing like what a person over 50 would actually be asked to pay once you apply for insurance.
- Online insurance calculators are often sponsored by just a few insurance companies, so you are not really getting an idea of what your insurance rate options are from all companies, nor do you know whether these companies are highly rated ones.
- Insurance calculators can't ask all of the questions that an agent may ask to give you the best idea of your rating and premium quote. (Remember a quote is just a quote, only an insurance company can offer you a contract).
How Do You Find Out Your Rate?
- Even if an online insurance calculator gives you a rate, you would not be able to buy insurance unless you completed an application and your information was sent to an insurance underwriter at the carrier.
- Insurance rates are individualized based on your current medical condition, your medical history, your family medical history, a paramedical exam, and lab tests.
- In addition, insurance companies will ask about dangerous jobs, your driving record, and any risky hobbies you might pursue.
- ONLY after evaluating all of your information, the insurance underwriter will make a recommendation about whether the company will offer you insurance and at what rate.
Should You Tell the Truth, Even If It Looks Bad?
YES, YES, YES. You need to be sure to be absolutely truthful in filling out your insurance information, because if you don't, the company might get out of paying a settlement because you were fraudulent. It isn't worth it to lie. This is an area where an independent life insurance agent can help you by presenting your information in the best way possible and having you apply with the company that will consider your information most favorably.
Do I have to Get a Medical Exam and Lab Tests? If you don't have a medical exam and lab tests, then you will have to pay more for your insurance. In fact, as an older adult, you may not be able to qualify for life insurance without such testing. It 's best to be honest about your current health situation, insurance companies always seem to find out anyway!
How Can I Get the Best Insurance Rate?
An experienced, independent insurance agent is the best choice for people who need to find the right insurance at the best rate because:
- An independent agent isn't tied to one particular company or type of policy.
- They are able to evaluate the situation with your interests in mind, not the company's.
- In addition, an independent insurance agent knows the different underwriting guidelines of different companies, so they can chose the one which is not only most likely to be willing to insure you, but also will give you the best rate.
- In fact, they may be able to discuss your application with their in-house underwriter so that you apply to the best insurance company for your specific situation.
The Bottom Line: Why Independent Insurance Agents are Best for Older Adults
An insurance calculator can't talk to you...they can only take the information you put in and in return give out what they are programmed to give you. You may be perfectly healthy, or you may have health or lifestyle situations which make you a higher risk for life insurance. However, delaying buying life insurance is an even bigger risk (the risk of leaving your family unprotected). You are as healthy today as you will ever be. Calling an experienced independent agent and having them help you evaluate your life insurance options can give you the peace of mind and make sure your family is taken care of.
Photo Credit: Geek Calculator