Are you a fan of fairy tales?  The reason I ask, is because a lot of the quotes I hear are simply that.   Often times I will talk to a client who got quoted super preferred rates and are 50 pounds overweight.  This makes the prospect happy to hear this and builds up an unrealistic expectation.

A true life insurance quote will factor in numerous items including:

1.  Tobacco use

2.  Current health

3.  Health history

4.  Drug and Alcohol use or history

5.  Profession

6.  Avocations-dangerous or otherwise

7.  Medications

8.  Citizenship/travel

Those are just a few of the factors that can effect a life insurance quote and ultimately the underwriting rating.  When we work with clients we try and gather as much information as possible as  good field underwriters so we can make our best estimate on the potential rate.   Obviously, we explain that everything is subject to underwriting, but based on the information we have received, this is where we will project.  Not only that, depending on what the underwriting factors are it may make sense to quote certain companies.  Many companies have a niche and they underwrite and price better for certain risk factors.   This is why having an experienced agent, who understands this is important.

Make sure when you get your next quote, that the agent isn’t just telling you what you want to hear.  If you do this, you may be setting yourself up for a big disappointment.    Try and be conservative and look at what might be the worst case scenario.

Had a funny discussion with a client who just wanted a realistic sense of what their new life insurance policy would cost.  They had the unfortunate experience of getting a very optimistic quote from an agent and applied and the policy ended up costing twice as much.  This is why it is important to make sure the quote is realistic and has all factors considered.  A lot of quotes given will not factor in underwriting factors such as health, medication, dangerous avocations, other risks, etc.

We try to make sure we understand all of the circumstances in play before we give any pricing information.  On top of that, we shop many life insurance companies for our clients and some underwrite more favorably for different circumstances.   With that being said, it is impossible to know 100 percent what the actual premium will be until underwriting is done.  Many clients have not realized they had a certain medical condition and then found they had it once they did the medical exam.

All term life insurance and permanent insurance quotes are all pending underwriting.  Make sure when you get the quote that everything is factored in, or you might get a big and disappointing surprise.