A life insurance quote can take many forms, however, essentially it is the price of a policy at a given age.
In addition to determining the amount of insurance, there are a number of factors to consider when deciding what type of policy and which company to buy it from. Initial premium, renewal premium if applicable, guaranteed cash value, investment options or dividends and more.
A life insurance quote for an individual policy would normally include the factors above. Comparing quotations from different companies can be complicated. An independent insurance broker could help you find the right policy at the right price,
If you have further questions, or feel that I could be of assistance, please do not hesitate to contact me.
If you would like to work with a local life insurance broker, you could start with a Google search. For example, if you search for: life insurance broker Halifax or life insurance agent Halifax, my name, along with several others, will come up. You can use the same method to find a life insurance broker in your community.
Most consumers look for a "quote" as a price for coverage on a given amount. Some quotes can be ran for as little information as policy type, date of birth, state of residence, face amount, length of term if term life and health status. This information can calculate a quote which is just an estimate of premiums. The more information you provide the more accurate your price quote. Understand that underwriting has the final word in the actual premium
Great question. Insurance lingo can be very confusing, especially when shopping and trying to compare prices. Here are a few words that can cause some confusion, and how us agents usually mean them.
1. QUOTE = the price we think you will get based on what you told us. If you are looking for a medically underwritten policy and were not asked many health details, chances are that quote is not very accurate. You can also tell if someone is following a script. There are so many nuances in each person's situation, that if you find an agent who quotes you more by experience and knowledge than "if a, then b", my opinion is that you will get a more accurate quote and end up with a better rate.
2. RATE = the price you actually end up paying. Another word is PREMIUM. This is your cost after all the underwriting has been done and your final rate has been determined by the insurance company.
3. RATING = this refers to the health rating. Examples are Preferred, Standard, Table C. It is what you are rated after the underwriter reviews all your health information.
I hope that helps. Feel free to contact me or post any more questions you might have.
A Quote is just that, a best guess to what the Life Insurance will cost you based on very limited information. When you fill out an application, you will be asked more specific medical questions. If you have high blood pressure for example, the quote you got most likely will not be accurate. However if the blood pressure is controlled, and there is a history of control, then you would most likely get a better rate.
Once underwritting makes a decision, a rate is set and you have to determine if you want to except that rate. So remember, a Quote is an estimate, the rate is what is being offered from the company.
Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
Imagine that there are 100 people your age wanting $100,000 of life insurance. The company actuary determines that in the coming 12 months on average 1 of you will die. So the base premium for a policy would be $100,000/100=$1000. The underwriter then looks at the medical information on all 100 applicants and determines who is close enough to the average to be considered "standard.” Some of the applicants will not be acceptable at all, while others will be is such great shape as to be considered preferred plus. When you get a quote you will probably get either a standard or preferred quote. If you fall into that category you can expect the premium to be the same when the policy is issued, if you don’t you can expect the premium to be either higher or lower. As I mentioned before someone might not be insured at all.
Co-Founder, TermInsuranceBrokers.com, Goldenzweig Financial Group, Las Vegas, Nevada
A quote, in short, is an estimation of premium you can expect to pay for your life insurance policy - the premiums can be paid annually, semi-annually, quarterly, or monthly. Please note, a quote is only as good as the information it's based on. There are 4 main factors that determine the premium for the coverage - your age, the amount of coverage you're trying to secure, how long you want it guaranteed for, and your risk classification.
The risk classification is the MOST important factor in determining how much you can expect to/will pay for your coverage. If the medical history is not factored into the quote (e.g. you're only running numbers based on someone's date of birth and/or height/weight), any quotes provided are pretty much meaningless because they do not provide an accurate representation of what you can expect to be approved at.
To provide a little background on risk classes: every life insurance company has different underwriting guidelines that determine what risk class an individual qualifies for. Since every company has different guidelines for qualification, one might offer a better risk class than another based on the aforementioned information, resulting in a lower premium for the same coverage.
The different risk classes someone can be assigned by a carrier are:
Preferred Plus (sometimes seen as Preferred Elite) – this means the proposed insured is typically in superior health, normal height/weight profile, no chronic illnesses, lab results within normal range, no immediate family members died from heart disease or cancer before age 60.
Preferred – this means the proposed insured is in excellent health. Height/weight may be a little over the most preferred range, treatment for high blood pressure or high cholesterol usually acceptable, lab results normal or slightly abnormal.
Standard Plus - this means the proposed insured's health is better than the average. Height/weight may be higher than normal.
Standard - this means the proposed insured is in average health and has a normal life expectancy. Height/weight may be on the high side, possible treatment for several minor conditions, one or more parents died from heart disease/cancer before age 60, slightly elevated lab results (such as higher than normal blood pressure or cholesterol).
Substandard - this means the proposed insured has a below average life expectancy (commonly seen as high risk life insurance). Height/weight may be considered obese, treatment for chronic illnesses or major health conditions (such as prior heart attack, cancer, diabetes), abnormal lab results. Substandard ratings are expressed as a “table rating”, usually designated as Tables A-J or 1-10. Each additional table increase is usually a 25% increase over the standard risk class rates.
Tobacco user risk classes are preferred smoker, standard smoker, and substandard smoker. There is no preferred plus or standard plus risk classification for tobacco users.
It's best to consult with an experienced life insurance broker who can shop your case among multiple carriers to see who will offer you the most favorable risk classification for your program. Please feel free to contact me for help or if you have any other questions. Thanks very much.
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In addition to determining the amount of insurance, there are a number of factors to consider when deciding what type of policy and which company to buy it from. Initial premium, renewal premium if applicable, guaranteed cash value, investment options or dividends and more.
A life insurance quote for an individual policy would normally include the factors above. Comparing quotations from different companies can be complicated. An independent insurance broker could help you find the right policy at the right price,
If you have further questions, or feel that I could be of assistance, please do not hesitate to contact me.
If you would like to work with a local life insurance broker, you could start with a Google search. For example, if you search for: life insurance broker Halifax or life insurance agent Halifax, my name, along with several others, will come up. You can use the same method to find a life insurance broker in your community.
1. QUOTE = the price we think you will get based on what you told us. If you are looking for a medically underwritten policy and were not asked many health details, chances are that quote is not very accurate. You can also tell if someone is following a script. There are so many nuances in each person's situation, that if you find an agent who quotes you more by experience and knowledge than "if a, then b", my opinion is that you will get a more accurate quote and end up with a better rate.
2. RATE = the price you actually end up paying. Another word is PREMIUM. This is your cost after all the underwriting has been done and your final rate has been determined by the insurance company.
3. RATING = this refers to the health rating. Examples are Preferred, Standard, Table C. It is what you are rated after the underwriter reviews all your health information.
I hope that helps. Feel free to contact me or post any more questions you might have.
Once underwritting makes a decision, a rate is set and you have to determine if you want to except that rate. So remember, a Quote is an estimate, the rate is what is being offered from the company.
Imagine that there are 100 people your age wanting $100,000 of life insurance. The company actuary determines that in the coming 12 months on average 1 of you will die. So the base premium for a policy would be $100,000/100=$1000. The underwriter then looks at the medical information on all 100 applicants and determines who is close enough to the average to be considered "standard.” Some of the applicants will not be acceptable at all, while others will be is such great shape as to be considered preferred plus. When you get a quote you will probably get either a standard or preferred quote. If you fall into that category you can expect the premium to be the same when the policy is issued, if you don’t you can expect the premium to be either higher or lower. As I mentioned before someone might not be insured at all.
The risk classification is the MOST important factor in determining how much you can expect to/will pay for your coverage. If the medical history is not factored into the quote (e.g. you're only running numbers based on someone's date of birth and/or height/weight), any quotes provided are pretty much meaningless because they do not provide an accurate representation of what you can expect to be approved at.
To provide a little background on risk classes: every life insurance company has different underwriting guidelines that determine what risk class an individual qualifies for. Since every company has different guidelines for qualification, one might offer a better risk class than another based on the aforementioned information, resulting in a lower premium for the same coverage.
The different risk classes someone can be assigned by a carrier are:
Preferred Plus (sometimes seen as Preferred Elite) – this means the proposed insured is typically in superior health, normal height/weight profile, no chronic illnesses, lab results within normal range, no immediate family members died from heart disease or cancer before age 60.
Preferred – this means the proposed insured is in excellent health. Height/weight may be a little over the most preferred range, treatment for high blood pressure or high cholesterol usually acceptable, lab results normal or slightly abnormal.
Standard Plus - this means the proposed insured's health is better than the average. Height/weight may be higher than normal.
Standard - this means the proposed insured is in average health and has a normal life expectancy. Height/weight may be on the high side, possible treatment for several minor conditions, one or more parents died from heart disease/cancer before age 60, slightly elevated lab results (such as higher than normal blood pressure or cholesterol).
Substandard - this means the proposed insured has a below average life expectancy (commonly seen as high risk life insurance). Height/weight may be considered obese, treatment for chronic illnesses or major health conditions (such as prior heart attack, cancer, diabetes), abnormal lab results. Substandard ratings are expressed as a “table rating”, usually designated as Tables A-J or 1-10. Each additional table increase is usually a 25% increase over the standard risk class rates.
Tobacco user risk classes are preferred smoker, standard smoker, and substandard smoker. There is no preferred plus or standard plus risk classification for tobacco users.
It's best to consult with an experienced life insurance broker who can shop your case among multiple carriers to see who will offer you the most favorable risk classification for your program. Please feel free to contact me for help or if you have any other questions. Thanks very much.