“Price is what you pay.
Value is what you get.”
~ Warren Buffet
The Problem Finding the Best Insurance Rate (Lowest Premium)
There is a bigger conflict playing out on the horizon that will be at your doorsteps soon. Traditional insurance quotes v. internet quotes v. no-load, and fee-only services. Three distribution channels claiming differentiation, but lost is what is best for the consumer.
The classic flashpoints include price, associated benefits, underwriting, guarantees, and to some extent, service and policy reviews. Let’s tackle the first: price. Once we tackle price, there may be less need to review the others for now.
Internet quotes claim to have most favored pricing. It makes sense, with its lower cost of sale and direct access to consumers. The reality is, all insurance policies are priced the same by law, no matter where. That means, there is no price difference, and no rebating or discounts are allowed by law. If someone finds a lower rate on the internet for the same product and terms, it will always be because the internet may silently assume a greater health rating than other sources. This tactic only confuses and frustrates shoppers for insurance.
Fee-only insurance services claim to have most favored pricing. Again, seems to make sense. Except this is not true either. Often these quotes are higher than commission-based products. No-load and fee-only products offering the same benefit for the same health rating generally cost more because of the “law of large numbers.” The law of large numbers is a theorem that the greater the pool of applicants and insureds, the better the carrier claims experience, the higher predictability of risk and profit margin, the more cost efficient the product. Most times, no-load, and fee-only policies cost more than commission-based products and internet-based insurance. With the latter two, the pricing will be identical.
All this assumes for a moment that pricing is the only differentiator. This is also not a good assumption. Other factors referenced earlier include associated benefits, underwriting, guarantees, and to some extent, service and policy reviews. Any of these other considerations can by itself create more value to policy owners.
All said this is an educational narrative. Insurance Whisperer does not have a horse in this race. We have the licenses and experience necessary to access all channels to help clients achieve the best possible result.
What is Premium Check®
Premium Check® provides professional advisors and their clients competitive, suitable quotes for commissioned and no-load, and fee-only life, long-term care, and disability insurance.
5 Reasons Why to Choose Insurance Whisperer for Your Next Quote
Premium Check® is an independent insurance service. We have no products of our own and have no “preferred” or captive carrier relationships. Because we are independent, Premium Check® is free to work in your client’s best interest and screen quotes from the largest possible number of carriers.
Premium Check® collects insurance quotes from commissioned, no-load, and fee-only insurance carriers.
Premium Check® is one-stop shopping for life, long-term care, and disability income replacement insurance quotes. Most times, the same health underwriting process can be shared among applications, saving clients time and effort.
Premium Check® works to create the best experience possible. This includes starting with an assessment of a client’s health profile (underwriting). Why start with underwriting considerations rather than cost? Negative health issues prevent qualifying for the best possible pricing and can lead to unmet expectations and loss of everyone’s time. More importantly, denial of insurance can negatively impact the outcome of a client’s future application for personal insurance. Denials can be reported to the Medical Information Bureau (MIB), a resource accessed by other carriers as an underwriting tool, making it more difficult or costly to be eligible for other insurances.
Premium Check® advisers are long time, honored academics and award-winning insurance planners. Our advisers’ strategies have been published in the national business and finance press and have been recognized as one of WORTH Magazines Top 250 Wealth Planners in the United States.
Premium Check® Quote Process
How we get paid is secondary to the insurance product chosen by adviser and client. It follows that the selection will result in either a fee or commissioned insurance product.