No matter where you get your term life insurance quotes from, it will always cost you the same in the end. What do I mean by that? Quotes are estimates of how much you’ll end up paying, but life insurance companies don’t care about estimates. Their prices are strictly regulated, and entirely based on your application and medical exam.
So how do life insurance quoting engines differentiate themselves? By being more accurate.
There are two ways to get term life insurance quotes: over the internet or in-person. A lot of people are choosing to get quotes over the internet — one, because it’s easy, and two, because they don’t want to go through the hassle of meeting with another person. Instant life insurance quotes are no less trustworthy than the quotes you receive from an agent. An agent's’ quotes are also not inherently more accurate — the accuracy of the quotes still largely depends on how they’re calculated.
Let’s dig in a bit on how life insurance quotes are calculated, and how you can figure out which calculation is the best and most accurate.
Life insurance premiums are based on a lot of factors. Age, gender, and location are three factors. There are a ton of factors based on your health. There are other factors based on your smoking habits and other risky behavior. Family health history is also a factor. I could list a bunch more factors, but it’s quicker to just say this: calculating a life insurance quote is complicated.
Knowing that, you may be a little confused if you go to a site like AccuQuote or SelectQuote. These companies offer instant life insurance quotes with a relatively small amount of information. With just your age, gender, state, and a self-reported health rating, you can get a life insurance quote. Unfortunately, as you can probably guess, these quotes are typically not accurate. These sites offer very limited input for health information, which is the most important group of factors that goes into deciding your life insurance premium.
The best term life insurance quotes come from comprehensive questionnaires, like the kind you’ll find at PolicyGenius. These comprehensive tools ask you a lot of questions about your health and your family history in order to get a better idea of what your final premium will be. It pays off, too — 85% of PolicyGenius customers have a premium within $5 of their original quote.
You can think of it this way — let’s say that there are one hundred factors that go into deciding your life insurance premium. Sites like AccuQuote and SelectQuote only ask about a handful of those factors, which means that their quotes are based on a small minority of the factors that go into calculating it. PolicyGenius, on the other hand, asks about most of those factors, which leads to far more accurate quotes.
When you’re looking for the best term life insurance quotes, look for the site that asks for the largest amount of questions about your health and family history. The more of those questions you see, the more likely it is that the final quote will be very accurate.
Image: Ayo Ogunseinde