Comments on: Shopping for Term Life Insurance

By: Rob Lewis

Rob Lewis — Wed, 31 Aug 2005 11:45:35 +0000

I’m interested to see that the underwriting process takes about the same time in the U.S. as it does here in the U.K. – far too long in my opinion too!

The whole process for the consumer is generally still all offline (apart from the quotes), but we’re gradually seeing more and more automation in the life insurance industry, so hopefully underwriting delays will start to decline.

By: MM

MM — Tue, 30 Aug 2005 22:26:18 +0000

I’m in the same process of adding a $1M 15-year term life insurance too. I share your observation — really don’t like these wait-for-our-call sites. I picked up a policy from AIG via wholesaleinsurance.net. I do have concerns that some no-namers may die out before the term ends.

The underwriting process seems to be very long too — I was told to expect 6-8 weeks.

By: nickel

nickel — Tue, 30 Aug 2005 12:58:40 +0000

Rob: Thanks for you comments. While the company may have a higher likelihood of landing a client once they get their information, I would argue that they lose a tremendous number of potential clients by doing it this way. The minute I see that a company uses the callback method I got to another site. I do this for two reasons. First of all, as you say, I don’t want to expose myself to future ‘marketing efforts’ by giving them my contact information. Second, it’s inefficient (for me). I’m busy, and when I sit down to look at something like this, I want to get the information immediately. Speaking to someone on the phone isn’t necessarily a problem but, if I’m going to do so, I will initiate the call myself. To be fair, SelectQuote posts their phone number, so I could call them. But I don’t want to negotiate the premiums when I first start shopping (if at all), and I don’t need for someone to explain term life insurance to me. I also want to be able to do this anytime I darn well please, which might be at 2AM on a Sunday morning (when SelectQuote’s phone lines are closed).

By: Rob Lewis

Rob Lewis — Tue, 30 Aug 2005 11:05:02 +0000

I can understand your frustration at not being able to get an instant quote – I work for 2 life insurance brokers here in the UK, and we have one site that provides instant quotes, and one that does the call back method you mention above.

Of these two methods, I think the instant quote is better for the client, because they get a premium there and then, and can then go away and compare it with other brokers. They also don’t have to wait around for a call or worry about getting lots of sales calls after submitting their phone number (one of my main concerns when giving websites my personal details).

The call back method is better for the company, because we can negotiate the premiums, explain the product to the client and also upsell other products – more often than not we get the business this way.

Just thought I’d put a slight business perspective on this subject!

Rob.

By: FMF

FMF — Mon, 29 Aug 2005 12:48:11 +0000

For life insurance, I searched (like you did) the various online sites, then called a local agent. I told him that if he could beat the best rate I found online, he could have the business.

He beat it.