WHY WOULD I BUY LIFE INSURANCE OVER THE TELEPHONE?
Buying life insurance will never be exciting; however, it is becoming much easier and more convenient now that many companies are willing to allow their lowest cost products to be sold over the telephone. As a consumer you have the opportunity to deal with a real, and normally knowledgeable, representative who can provide you rates and information within minutes.
There is no longer the need to have an agent come to your home and spend hours trying to sell you something that won’t fit into your budget. If you choose an agency that uses software designed to compare most the products available in your state, you will combine convenience with the lowest possible rate you are eligible for.
IS IT SAFE?
Yes, if you use common sense.
Applying for life insurance requires you to provide sensitive and personal information to the insurance company that will issue your policy. Use common sense in deciding with whom you share your Social Security Number, Date of Birth, and Driver’s License Number with.
Here are some indicators that you are dealing with professionals:
• Have the people you have spoken with acted in a knowledgeable and professional manner?
• Have they asked you about your medical and personal habits history before they quoted you a rate?
• Have they clearly explained the application process and the procedures you must follow to obtain a policy at or near the rate you were quoted?
• Have they clearly explained that your policy may not pay a claim if you do not provide accurate answers on the application?
If the answer to all of the questions above is yes, then you have reason to be confident that you have made the right choice; however, if you have any lingering doubts there are a few more qualifiers you can look for:
• Have you been instructed to make your check payable to the insurance company and NOT the agent or agency?
• Have you contacted your state insurance department to confirm that the insurance company (NOT the agent or agency) is licensed to do business in your state?
• How did you find this company? Did they send you something in the mail; did you find their web site?
Again, if the answers are yes then you have found a winner. Let’s face it: Very few crooks act like professionals.
HOW DO I FIND INSURANCE OVER THE TELEPHONE?
The internet has become the choice of many for fast and easy information. Type “Insurance by Telephone” or similar key words in the search field of your Internet Browser and you will get many pages of links to chose from. Look for toll free or other telephone numbers and begin calling. Ignore the sites that have only forms to submit your information. Most of them will have insurance calling you in an attempt to set up a visit to your home.
HOW DO I GET THE BEST RATE?
Finding the lowest rate that you qualify for is more about what you shouldn’t do than what you should. Here is a list of things you should not do if you want to pay the lowest arte you are eligible for:
DO NOT provide false information about your health or personal habits during the quote or application process. Life and disability insurance rates are based on your actual health and personal habits, not on what you would like them to be. State insurance regulations require insurance companies to issue a policy at the rate you qualify for. There are no exceptions! This means you cannot negotiate, ask for a discount, or provide false information in the hope that you will get a better rate. Be honest during the process and you will receive the best rate offered by that company.
DO NOT deal with any agency that does not use rate comparison software to develop a quote. This new technology allows for the comparison of literally hundreds of different companies in order to provide you the best rate you are eligible for as long as you answer each qualifying question as accurately as possible. For example: five (5) pounds of weight might make the difference whether Company A or Company B is the cheapest. Give the representative the truth and they will find you the lowest rate.
DO NOT believe you are entitled to, or will receive, a discount or special price from anyone. Any licensed agent making such an offer is violating state insurance law. YOU ARE NOT AN EXCEPTION! Consider this: normally only greedy people get conned.
DO NOT delude yourself into thinking that a referral from your CPA, broker, lawyer, tax person, or a friend will get you the lowest rate. Remember, the object is to pay the lowest rate, not subsidize someone’s drinking buddy. As previously stated, there are no discounts. You will have to decide whether to do business with anyone that considers violating the law to be an acceptable business practice. If you want to do business with a referral, use the qualifiers detailed earlier in this article. If the referred agent passes those standards, you should receive a competitive quote.
SUMMARY
It is now possible to make an unpleasant task easier and less expensive. If you combine the tools listed above and a little common sense, you have reason to be confident that you have paid the lowest rate you are eligible for.