Why Most Online Life Insurance Quotes are Worthless

Term life insurance quote sites are common, easy, and cheap. Does that mean it is a good way to shop?  That depends.

  1. How do you feel about telemarketers and spam emails?
  2. Do you have health issues that might affect approval?
  3. Are you certain which policy is right for you?

Below I take up those three points in detail then (at the end of this page) I will give you two solid solutions for shopping for life insurance.

ONE: How do you feel about telemarketers and spam emails?

The irony about online term quotes is people turn to them to avoid a pushy salesperson hounding them by phone or parking themselves at your kitchen table until you buy whatever they’re pitching. But that’s exactly what happens. 

Here’s my warning about this “free” service; they’ll want to know your first and last name, phone number, birth date and email address. Then they’ll sell it to life insurance agents. Plural. Lots of agents! If you request a quote, you are giving permission to receive phone calls, spam emails, and junk mail from them. Read their privacy policy before you click “submit”. Here’s an exact quote I copied from one site.

“Providing contact information such as your e-mail or phone number will be viewed as your express invitation that we, or any of our affiliate partners, may contact you about insurance, even if you are on a state or federal ‘Do Not Call’ list.”

Who will call you? Good agents. Pushy guys. Nice women. Inexperienced new agents. Knowledgeable professionals. Creeps. Lazy agents. Ignorant brokers. Whoever has the money to pay for leads can get your contact information! And you WILL get calls. Some will be local and want to meet in your home. All of them need to make a sale so they can buy more leads just like yours.

As a broker, I get advertisements to buy leads sourced this way.  Many quote sites sell your information to several agents. The primary purpose of the site is to generate leads for agents. That’s how they make money. They may sell your information to their “partners” too. The few places that sell leads to only one agent make a big deal about it: “Exclusive Leads!” the advertisement screams.

TWO: Do you have health issues that might affect approval?

If you are young and have a squeaky-clean health history, you might be okay buying online. But if any of the following apply to you, then an online quote is not likely to be accurate:

  • You are older,
  • Have ever been prescribed medication,
  • Have high blood pressure or cholesterol,
  • You are under or over weight,
  • Visited an emergency room,
  • Been diagnosed with a disease or had surgery,
  • Have tickets on your driving record,

If any of those apply to you, you are not a good candidate for buying life insurance online. The site generates low-ball quotes based on your gender, age, and nicotine use. Some sites ask a few other general questions. That’s all.  The low-price likely will evaporate to be replaced by an expensive policy.

Will you even qualify for the online quote you were given? It’s hard to say. As a broker of 31 years (as of 2021) I’d have to ask you, “What’s in your medical records?” One quote site has this truthful warning (but ALL of them should post it!)

“The premium rates shown are for quoting purposes only, are not an offer of coverage and are not guaranteed. Final premium rates will be determined by the insurance company and are based on individual circumstances. As a result of underwriting, final premium rates may differ from quoted premium rates.”

 Online term quotes are worthless because you must qualify for the rates, something the computer software cannot predict. Most consumers don’t know that every life insurance company makes up their own underwriting rules. You might be totally amazed how wildly different they handle something as simple as high blood pressure, a few pounds overweight or a family history of heart disease. (Yes, your family’s health history will affect your rates!)

That’s why an online quote is of so little value. It’s just a generic quote, not an educated guess, not a professional opinion nor a promise. There is no underwriting review prior to giving you a rate. It’s just a teaser to get you interested, nothing more.

THREE: Are you certain which policy is right for you?

Who knows if an online quote is for the right kind of life insurance for your needs with a company who will look kindly at your health history and offer a policy at the lowest price?

“Field Underwriting” is the detailed pre-application qualification process that allows a broker to match you up with the company most likely to offer the lowest rate. It’s the only way to get an accurate quote you can count on.

Even if you are young and perfectly healthy, are you buying from a company that specializes in super-preferred cases? You don’t get that kind of life insurance service from an online quote site. You can get it by speaking with a broker who is a skilled field underwriter.

And make no mistake about it; the life insurance provider WILL send for medical records, require a physical exam and lab tests (except for small or specialized policies.) The chances of hiding a medical condition are almost nil. Don’t even dream of hiding your tobacco habits.

The few companies that advertise life insurance policies that don’t require medical qualification are VERY expensive. You don’t want to buy from those unless you are seriously ill or dying. And even then, you should know a claim won’t be paid until the policy is 2 years old.

Your best bet is to “know before you go”. That’s a downfall of working with a quoting service or a one-pony-show “captive agent”. I am a broker and expert field underwriter who will give you the one-on-one service that results in a firm offer at a great rate from a highly-rated company.

Two solid solutions to help you shop smart for life insurance

Solution 1: Below are links to three tools to learn about life insurance so you can buy with confidence:

  1. Confessions of a Life Insurance Agent: The 9 Inside Secrets You Must Know to Slash Your Premiums! © Request this book and a quick quote FREE BY MAIL here.
  2. “4 Questions to Ask yourself BEFORE Shopping for Life Insurance” Request this report as a PDF download here.
  3. “3 Things Every Ex-Wife and Widow Wished She Knew about Life Insurance BEFORE the Divorce Was Final or He Passed Away” Request this report as a PDF download here.

 Solution 2: Get a quick unbiased online quote from a company that will NOT sell your name. (You can request contact by an agent but don’t: call me!)

The link below (Term4Sale) is the only source of life insurance rates on the internet that I recommend. Yes, I mean ONLY! That’s because the company that operates the site, Compulife Software, Inc., does not sell life insurance. None. Period. You can trust them because their income comes from selling quoting software to independent insurance brokers (like me.) They compile life insurance rates from insurers in the U.S. and Canada.

Their rates are accurate based on the information you input for their online form. That said, it is still a generic quote.  You may not qualify for it and it might not be the right policy for your needs.   Get a quick quote from them but get expert help from me.

Get your quick quote here: TERM4SALE®

Who else wants to work with an Independent Insurance Advisor?

Truthfully, not everyone needs life insurance. But if you do need it and don’t have it, it’s time to start shopping smarter. But better yet, learn how to be an informed consumer so you can buy the right plan that meets your unique needs, budget, and goals. Life insurance is too vital to your family’s wellbeing to buy any other way.