Life Insurance Question

[tinkerbell615]

DH and I are shopping for term life insurance at the best rates for us. We have some now, but just want to make sure that we are getting the best price for what we want.

The insurance broker that has been working with my employer for many years is working on getting us quotes.

My question is this... He gave us a packet of forms to fill out so that he could shop for the best prices. In the packet of information there is a release for us to sign so that they can get our medical info., financial information, etc... We have never done this before and I am a little leary about signing that paper. Is that what you typically have to do? He claims this is the best way for us to find the best rates. We have gotten a couple of other quotes and have not had to do this.

Just interested in your comments on the subject. Thanks!

 

[a1tinkfans]

The "broker" makes his money off of your policy. Thus the more he sells to you, the more he makes. You can cut him out completely by using any online insurance place to give you a quote to give you a ball park. Its easy!

Generally speaking the policy is based on your rating, A+, and then downgraded from there, the lower the grade, the more $$ it costs you.
First off, the rating is not "locked" until the underwriting in the company gets your blood and your weight (and theres lots of tips to follow to be sure you are at your healthiest ) So
to me, it is premature to have him asking you to sign your information over to him when he has not even gotten you basic info for rates with your "basic" info (ie weight, height and any Med Hx , ie hypertension (controlled or otherwise) smoking or drinking, then of course your dob is vital)
He can give you basics WITHOUT your more personal info and then IF he gives you something you are interested in pursuing, they/the specific carrier (prudential, Metlife, etc) you choose will ask for your more personal info within a contract to "bind" your insurance.
TERM is the way to go Try to get the LONGEST policy at the youngest age, (ie 20 year, 30 year) that you can afford ..in the long run it is worth it.
Most people Over Buy the Amount and do not get it for LONG enough and thats where the mistakes are made. Think ahead and you will not regret it..it gets VERY expensive as you get older..which is why many that are now older, have none! With people retiring older, having longer to live and more bills ...the people left behind often get nothing as the policy term was too short and it was not renewed!
Well hope this helped a bit, good luck and SHOP around, prices do vary

 

[tinkerbell615]

Thank you "a1tinkfans". As I mentioned we do have term insurance now, but are just shopping to see if it is the best deal. The broker did tell us that he gets commission no matter who we decide to use, so he would just shop everyone and try to get us the best deal. Does the insurance typically run higher with a broker? Just curious.

I think I will have DH ask him if he can wait on the medical info release until we decide if we want to purchase.

 

[a1tinkfans]

Thank you "a1tinkfans". As I mentioned we do have term insurance now, but are just shopping to see if it is the best deal. The broker did tell us that he gets commission no matter who we decide to use, so he would just shop everyone and try to get us the best deal. Does the insurance typically run higher with a broker? Just curious.

I think I will have DH ask him if he can wait on the medical info release until we decide if we want to purchase.

Ya know...with a broker, I do not know..But with a licensed insurance agent that works for a carrier, typically that is no. But they do make a lot off of the policy. If you are considering "adding" to your policy by either increasing it OR adding another layer of protection (like you have a 15 year at 100K and now want to add a 30 year at 100K) it is a bit easier than if you are REPLACING what you have currently with totally new coverage...
WHo ever you are using should be able to answer each and every Q you have and you should feel comfortable asking. Let them "earn" your business, so ask away
Is your current policy convertible? Can it be extended or increased? Those Qs should be known to you. It may be to your advantage to find that out before considering going thru a new carrier/policy...

 

[clh2]

My DH and I did our term life insurance policies over the internet too.

IMHO - the only thing a broker does on your behalf is to make a commission off of you.

I also agree that the online companies are able to provide a "pretty close quote" based on how you answer the questions.

 

[tinkerbell615]

Thanks again. I am sending an e-mail with my questions. I do understand that they need personal information, but I am really funny about just signing a release for medical, financial, driving records etc... for quotes. DH and I have nothing to hide, but I don't want to offer my information to just every company that gives us a quote through the broker.

Maybe it is best for us to just stay where we are. It just seemed like our rates jumped quite a bit this last time and there was not an age change etc... that should have made them go up the way they did. I thought shopping was the way to go, but it really might not be.

Thanks for the input. You guys are awesome!