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I though term life was cheap! Do I need to shop around?

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  • #16
    Originally posted by afan View Post
    What is wrong with getting prices from captive agents and aggregators?

    These quotes are free for the asking.

    If he does not like the policies he finds by doing his own shopping, then he would be under no obligation to buy them.
    Avoiding those sources of quotes simply means he will do an incomplete search and perhaps miss the best option.
    Denials count, They are required disclosures and influence others. Shared application data.

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    • #17
      Originally posted by Tim View Post

      Denials count, They are required disclosures and influence others. Shared application data.
      To be denied, one has to apply. We are talking about getting quotes, which happens before application.
      OP has already been approved by one company.

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      • #18
        Originally posted by afan View Post

        To be denied, one has to apply. We are talking about getting quotes, which happens before application.
        OP has already been approved by one company.
        He's not going to get the most important information, which is: what companies are most competitive for his specific condition? Experienced non captive agents know this. Maybe there's one company out there which rates IBD better than standard.

        Aggregators are fine if you don't have health condition but if you do those quotes are pretty meaningless.

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        • #19
          Originally posted by FIREshrink View Post

          He's not going to get the most important information, which is: what companies are most competitive for his specific condition? Experienced non captive agents know this. Maybe there's one company out there which rates IBD better than standard.

          Aggregators are fine if you don't have health condition but if you do those quotes are pretty meaningless.
          Anonomous inquiries are possible by the agents. Rest assured that a captive agent can quote and get a great quote and result in a denial. Aggregators as well. The name of the game is volume.

          "It is not a sexy topic, but it is one of the most important (if not THE most important) topic in personal finance for doctors. Here are the top 10 questions about disability insurance for doctors, and an answer to each. Don’t skip this. It’s important, and that is coming from someone who screwed this up and cannot get disability insurance now." The Physician Philosopher has written much about this for a good reason. With a medical condition, do it yourself can have potentially harmful impacts. Some more serious than others."Oh, you mean you wanted a quote instead of an application? You said "Yes". Sorry about that. It was clearly stated in the box, "accept our 20 pages of disclosures". It costs you nothing. If you want to get a competitive quote, do it after you have a policy application approved.

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          • #20
            And again, the OP HAS an application approved. They can buy that policy, then shop for another, once they know what they need.

            I never shopped for life insurance with health problems and last shopped a long time ago. Nonetheless, the process of submitting an application was so different from that for getting a quote that I find it hard to imagine confusing them. The quotes were given based on information over the phone, I never signed anything for getting a quote. The applications were long forms that had to be completed and signed.

            The problem with using only captive agents or companies that sell directly to customers is that they will not show you quotes for companies that sell exclusively through independent agents. The problem with using independent agents is that they will not show you quotes for companies that sell exclusively directly or through captive agents.

            The only way to see prices from both parts of the market is to shop both parts of the market.

            The market is competitive and you find the best prices by comparing quotes from different companies.
            Shopping for insurance while ignoring a huge share of the market would be like shopping for a car but only looking at a single dealer for one specific make and model. You would have no way to know whether you got a good price.

            If the OP takes the policy offered, then shops, gets a better quote but the application is denied, then the OP can keep the policy they have.

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            • #21
              Originally posted by Tim View Post
              Rest assured that a captive agent can quote and get a great quote and result in a denial. Aggregators as well.
              And independent agents can do the same thing.

              The last time I shopped home and auto, I shopped direct writers and used two different independent agents. The best deal come from one of the independents. If I had gone only with the first independent agent, I would have ended up with a far worse set of policies. Even when they got prices from the same insurers there were big differences in costs. The direct writers were better than what I got from independent agent 1, but not as good as what I got from independent agent 2.

              I would never have known this if I had not shopped.

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