house insurance online quotes

People seek online quotes for a variety of reasons. There are those who are uncomfortable speaking with an agent because of the implied responsibility that entails. Others are just looking for a range of prices as part of beginning the process of applying for coverage.

However, no matter how sophisticated the website, any potential applicant interacting with a machine cannot receive guidance based on experience, nor can a machine advise you based on your best interests.

Recently, I compared several of these large internet insurance websites that concentrate their business among a few of the low cost carriers against an independent agent’s ability to choose from many more highly rated companies.

Here’s what I found.

Generally, applicants under 50 in good health will pay about the same cost at the better health ratings (preferred best and preferred non-smokers). This is because most low cost carriers are priced competitively for young, healthy applicants. Even without major health issues, many applicants over 50 will see a wider range of premiums than those under 50. In addition, those with weight and/or health issues may see an even greater range of prices.

Many online quote sites concentrate their business among a limited number of carriers. This makes sense for the online website because fewer carriers mean higher volume per carrier. Higher volume translates into higher commission levels and bonus.

In contrast, most independent agents offer coverage through a large group of carriers. As applicants age, the independent agent is likely to find more options for the client. This is because each carrier has slightly different underwriting criteria.

Another major advantage of using an independent agent is their ability to access competent underwriting advice before applying for coverage. They often have access to an in house underwriter or an underwriter at multiple carriers. With literally hundreds of companies to choose from, this is an important benefit of using an independent agent. It assists the agent and applicant in choosing a carrier, saving time and frustration for all concerned.

When appropriate, the independent agent can go to several carriers on an informal basis with pertinent medical information and receive informal offers. In this way, the agent can guide the applicant to the insurance company that looks at their case in the most favorable light.

Another important distinction between online sites and qualified independent agents concerns some “out of the box” thinking. Recently, we were able to assist one of our life insurance clients in Florida by replacing a whole life policy with a guaranteed premium universal policy. This resulted in reducing his premium by almost half because he had no need for cash accumulation.

Because we were aware of changes in carrier underwriting guidelines, one of our term insurance clients in Southern California was able to replace a 2 year old policy and save money while extending the guarantee period. Certain underwriting criteria will see improved ratings over time. Another term insurance owner in Texas replaced existing coverage and received a better health rating because we alerted him to the opportunity.

These are just a few of the value added benefits that a competent independent life insurance agent can provide.

Leonard Robbins has written additional articles that can help you choose the best policy for your current and future needs. You may contact him at lenny@lifenetinsurance.com or visit his website at http://www.lifenetinsurance.com/ to read all you’ll need to know.