The rate that is charged for a certain life insurance policy, from a certain company, at a certain health rating, will be the SAME even if sold by another AGENT.
Rates among life insurance COMPANIES, however, are DIFFERENT. That is where shopping can help, because different companies have better rates for different age groups, health conditions, and types of policies.
And that is also where your agent can help you get a better rate. Some agents have more options to offer; some have more experience; some understand health conditions or product types better.
Regional Marketing Director, Capital Choice Financial Group,
Rates on life insurance is the same in ever state on a per company basis. However, there are rate differences between companies. For instance, smokers can be treated more favorable by one company or another. Shopping among companies will give you the best chance of getting the best premium but will not necessarily guarrantee the lowest rate until after the client goes through underwriting and is approved under a rate class. Independent agents or brokers like myself can do the shopping and get the best rate possible. If you have any questions or would like at quote please call Ronald G Hinch @ 843-450-9879 or visit my website at www.hinchfinancialgroup.com.
Agency Owner, The Thomas G Sheehan Agency, 27 Glen Road Sandy Hook, CT 06482
Insurance Companies develop rates based upon historical risk research and a number of other factors. These rates for whatever product a company offers in a particular state muct be filed and approved by the state Insurance Department. Agents do not develop rates, but they apply needs based factors that ultimately result in the rate we pay for the insurance product we are purchasing. Rates can vary from company to company but not necessarily from agent to agent who is offering the same coverage from the same company.
The rate an insurance company charges and an agent charges is exactly the same in all states and all lines. I would suggest using an independent broker who is able to shop multiple companies to find you the best product premium ratio for your needs. Depending upon risk factors, every insurance company has a different premium depending on the product. An independent broker is able to sort through that and find your best option for your unique situation.
That's a great question! Many people think that there can be price differences between agents, as they assume that the agents' profits play a part in the quote. In reality, that's not the case. The agent has no say whatsoever in the price structure of the policy. The only way company A's price can be different when quoted to you by two different agents in your town would be if one included riders (additions to a policy that provide additional protections, but at an added cost). Both agents have to use the prices set by the company, and the industry's regulators. That is a great question, and I'm glad you asked it. Thanks!
President, Insurance Associates Agency Inc., West Chester, OH
I am aware of carriers that use different companies in their company group to offer different rates for clients that are not necessarily available to the agency distribution channel. The different distribution develop rate experience that is independent from the other and may rise or fall independently so that rates for one is higher than another. Carriers using multi-channel distribution systems where they write business directly are probably following this model if they also have an agency channel. There are some large carriers doing this and you'd recognize them if I were to blab. I don't hate them enough to out them.
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Rates among life insurance COMPANIES, however, are DIFFERENT. That is where shopping can help, because different companies have better rates for different age groups, health conditions, and types of policies.
And that is also where your agent can help you get a better rate. Some agents have more options to offer; some have more experience; some understand health conditions or product types better.