LifeNet Insurance Solutions Blog

Insurance Premium Calculator Falls Short

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Convenience is the obvious allure of buying from an insurance premium calculator website. But just as with buying at a convenience mart instead of a full-scale grocery store, you’re going to pay dearly for that convenience.

If you are considering using an online insurance premium calculator and then buying on that website, you should realize that:  
 

• Websites with insurance premium calculators notoriously deal only with a limited number of carriers. You’re not going to get an adequate comparison of all your options.
• You’re not going to get any guidance about the type and amount of insurance that makes the most sense for you. You won’t talk to an actual person until you’re ready to close the deal you’ve hastily selected without any professional advice.
• Online quote engines operate with a “one size fits all” mentality. They won’t match you with carriers who offer the best rates for your age or any specific conditions such as smoking or diabetes—even though there are unquestionably significant variations in how companies charge for certain ages and health issues. Premium calculators are designed to spit out a quote—fast. They aren’t designed to look out for you.
• Online calculators don’t usually ask enough questions to avoid surprises. The calculator’s quote may be misleading—a fact you won’t realize until you’re late in the process and an agent on the phone asks for information that didn’t figure into the quote.

The Best Calculator Is a Person

There’s nothing an insurance premium calculator can do that an independent life insurance agent can’t do. But there’s a lot a knowledgeable independent agent can do that the online quote engines can’t.

Unlike searching by yourself online—not knowing for sure where to look—an independent agent with years of market experience won’t be shooting in the dark. A quality agent will:

• talk in-depth with you to understand your personal situation and make sure you’re buying the life insurance you really need
• have access to a wide range of carriers and products
• have extensive knowledge of which carriers offer the best rates for any specific age or condition.

The Bottom Line

With something as important as life insurance, it’s shortsighted to take the quick but more expensive route of using an insurance premium calculator online. Take the time to do it right and consult with a market-savvy independent agent.

Photo Credit: Pargon