Are Initial Quotes Accurate?
The life insurance quote is a very useful tool when you are trying to decide how much coverage works for you and at what price. The quote has now become the first stop for individuals buying insurance so that they can research the different policy types, the coverage amounts, and various other features that come with certain types of insurance.
For example, a customer will use the online insurance quote to compare the cost of a term life insurance policy with a whole life insurance policy. They will notice that the premium for the whole life insurance or universal life insurance policy is higher than that of the term life policy. They may even notice that the death benefit is lower. However, they may also make note of the fact that whole life insurance policy gains cash value that can be borrowed against in the future.
Then again, a customer may be interested in term life insurance only, so he or she uses the online life insurance quote to compare a term policy with a $350,000 death benefit and one with a $500,000 death benefit. Obviously, the $500,000 is going to have a higher premium, but the point is to see if it is affordable. But there may be some factors missing to determine the accuracy of the quote.
There are a number of details that go into the online life insurance quote to determine a dollar amount. For example, a person's health and lifestyle are factors and so is age. This information can be provided, but it may not make the quote entirely accurate.
For example, term life insurance policies usually require that a medical exam be done first. It is easy to say when using a life insurance quote that your health is fine. However, the blood test done during the health exam shows high cholesterol. This is a risk factor that could raise the premium a little.
Nevertheless, this does not devalue the online insurance quote in any way. Although there are some factors that may need to be determined in the future, it is an estimate anyway. The goal, however, is to make that estimate as close as possible through a series of qualifying questions. When the questions are answered truthfully, you may find that the accuracy of the quote is not far off.
Something such as high cholesterol is not going to increase the premium by much. This applies to all policies, although universal and whole life insurances may not need a health examination, but honesty instead. They have higher premiums anyway and will cater to those of all levels of health. This means they may be slightly more accurate than a term life insurance quote.
The Value of Quotes
Do not let the fact that the quote may be slightly off discourage you. The difference from one policy to another is always going to remain the same. The dollar difference shown in the quote is quite comparable to what will happen in reality. Overall, the quote is an exceptional guide at making sure you purchase the policy is right for you.
And it has been shown time and time again that the difference between the quoted amount and the actual premium varies by only a small percentage. Unfortunately, there is no way to determining exactly what a person will pay until all questions are answered and health exams, if any are required, are completed.
So always make the Internet quote your first stop so that you can make an informed decision and don't worry as much if initial quotes are accurate. When you have the right policy you'll feel great. You'll know you made the right decision.