Are Instant Life Insurance Quotes Worth Their Salt? The Simple Truth

Are the Online Instant Life Quotes what you will really pay for your life insurance or just pie in the sky?

In answer to that question…well…

It really depends on the life insurance consumer you talk to.

Some would say yes, I selected myself as “Preferred” then inserted the required information and got my quote.  I then applied and got approved for what I was expecting.

The next person says… I used the Instant Life Quotes system and…they tried to pull the old “bait and switch” on me!!”

Hmmmm…was the life insurance company or agent/broker really pulling a “bait and switch” or not?

 So What Really Happened Then?

Well, the insurance company nor agent was not trying to rip anyone off.  Kind of looks like it though on the surface.  Let’s look a little deeper though.  You see, those fictitious cases were either examined by an underwriter at the ABC or XYZ insurance company and a final cost decision was rendered by the life insurance company underwriter.

Both applicants selected the company with the lowest cost for coverage based on the quick quote they received online.  Now, the first case applicant was favorable/ideal to ABC Insurance Company while the other individual applicant was not an ideal risk for the other insurer (XYZ Insurance Co.)and resulted in a lot more cost than expected.  There is the “bait and switch” so to speak.

As consumers, we must satisfy these specific criteria to receive the “health class or rate class” selected in the “quick quote.”

This is where your seasoned, independent agent comes in as your intermediary expert.

There is no financial advantage to not speak with one. 

In fact, you may end up overpaying by selecting the wrong company to apply to due to its specific underwriting standards.  You see, the quick quoter does not have enough information to classify all the details an insurer will gather before an offer of life insurance coverage is extended.

To learn more about independent agents/brokers and how they are compensated, click here.

A key point to understand, all life insurance companies underwrite significantly different unless it is a more expensive “guaranteed issue” policy in which medical underwriting a very limited role.  In that case, we cannot compare this scenario.  It would not be as affordable and very limited in maximum coverage amounts.

An important lesson from the above… and you should really consider this carefully…

unless you have communicated directly with a licensed Independent Life Insurance agent, I would say…”take it all with a grain of salt.”  Online, “Instant Life Insurance Quotes” like we at Special Risk Life and most other reputable online life insurance agent/brokers provide, are meant for comparison only.  They are legit as long as you meet all underwriting ideals.

Yes, you can still just apply here online to get it done and sometimes it will hit the nail right on the head…

In other words, if you fit a particular rate class or “mold.”  Many cases go thru exactly as an applicant might expect.  Same at many other reputable life insurance sites.  In the end though, your actual premium will be determined by the underwriter of the insurance company regardless of what the “Instant Life Insurance Quote” was.  That is where the surprise most often occurs and leads to disappointment.

So why can’t they just stick with their “comparison rates” they provide us?

Well, the rates are actually very accurate if your “insurable risk” meets the criteria for that particular rate class and that particular life insurance company.  You may consider yourself a safer risk than the insurance company does.  Their are literally hundreds of life insurance companies out their each with different criteria that determine how they will classify your situation.  In the end, it is how the insurance company perceives any of us as “insurable risks” that will determine what any insured will be charged.

My advice, let your seasoned, independent agent/broker sort this out for you and with you, to avoid a potential surprise.  Talk with them before applying.

So what are the “certain criteria” a life insurer will look at.

First order of business is your overall health condition.

This is frequently determined by any medical exam that is required.  These arean conducted in your home (required for best rates).  It also will involve your prior medical records.

When you apply for coverage, an order for an Attending Physician Statement (APS) may be done.  This is paid for typically by the insurer, but never the applicant.  We do it a bit differently here at Special Risk Life, but that is not the subject of this article.


maybe you believe you are in excellent health, but after review by an life insurance underwriter, they might determine that you have certain degree of additional risk.  To offset any additional risk, the insurer will increase the cost of insurance to cover this.

Your height versus weight.

This is always part of the puzzle to obtain the rate quoted in a online Quick Quote.  You may have a good medical report, but if your height and weight are skewed, you will be rated up.  Overweight for your height will impact you, always.

Your driving record does impact your rates.

What does your driving record have to do with life insurance you ask?  Your alive and kicking and even your health my be pretty darn good, right? Unfortunately, no matter how well you believe you can handle a car/truck… It is time proven that people with a larger number of moving violations are at a greater risk of death than those with little to no history.  To offset this additional risk, the insurer has to increase your premium.  Now 1 speeding ticket does not usually pose a problem to your rate, but if you have a few moving violations to your record, you will be rated up.

Another common factor is evaluating you as a consumer is your occupation or hobbies.  Let’s say you work for a utility company on power lines for a living.  A lot more risk there than someone that works behind a computer everyday.  Maybe you like scuba diving?  Maybe you like rock climbing?  Dangers inevitably surround these hobbies.  You can bet that the insurer will build the increased risks of the utility company employee or scuba diver into their decision unless we make a request to have coverage excluded for all of these specific risks.

Remember, the insurance company cannot see you.

That is why instant quote tools have limitations.  Agents and the life insurance companies need the specifics provided by you to zero in on the best outcome.

Many people feel they are a good risk only to find out the insurer feels a bit uneasy about it.  That is the nature of the business and why you need the appropriate professional in your corner to help you get the best offer.  You need an advocate to speak on your behalf and a method of reaching out to many companies when the case gets tough.

Whether you are the ideal risk the life insurance company wants or not, make sure you have a specialist like Special Risk Life to help you sort it out.  They will help filter out a lot of frustration, a poor offer or even a declination.  The messier it gets, the more the specialist agents are going to save you.

In Conclusion:

Do you have enough education at this point to move forward on your own?  This is something you must determine.  There are also many more resources here on this website.  Speaking to an experienced independent agent is in your best interest, particularly if a competitive rate and coverage is your goal.   It costs you nothing.  I personally recommend that you consider speaking directly to a specialized, independent agent if you are considered high risk.  These cases can be very difficult to place without the right advocate.  Quick Quotes are not going get you the best solution. The key is to find a committed and seasoned guide who can help you sort thru your “insurable risk.”  Seasoned Agents who work with all of the leading carriers and special risks are most likely to hit the nail on the head.  Discuss your situation with them in detail.  Advise them of why you are purchasing coverage and the goals to obtain.  They are going to know who and what will be the ideal for you.

The Simple Truth is, instant life insurance quoting is just a good starting comparison for a lot of people.  From there, you need to find an independent specialist who can dial things in for you and put things in better perspective before applying.

Life insurance is very affordable if you have the right resource working for you.  Special Risk Life Insurance has the experience, knowledge and the access to all the top insurers in the industry.  We are painless to work with and will get the job done the right way.

If we can be of assistance, we would certainly be glad to help you sort it all out.