How do I choose? They all look the same!

Authored by Brian Leising

Term insurance is a highly competitive market, with most top carriers offering coverage at similar prices.  When you see a comparison with several carriers just pennies apart, how do you choose the best one?  When prices are virtually the same, here are some other factors to consider based on the preferences of your client:

  • Extra benefits.  Do the carriers offer extra, built-in benefits?  Benefits may include disaster relief, chronic and critical illness accelerated benefits, medical second opinions.
  • Price breaks.  Would the client save money by rounding up 250K, 500K or 1 MIL?
  • Online application.  Would the client like to avoid paperwork?  Choose a carrier that offers an online application.
  • Underwriting.  Which carrier makes it easier?  What chance does you client really have to receive the quoted rate class?  How quickly do they issue policies?
  • Conversion products.  What permanent products does the carrier currently offer?  Is every product available for conversion?  Do they include no-lapse guarantees?
  • Company name.  Does the client prefer a name-brand company?
  • Financial ratings.  Does it matter to the client if the carrier has an A++, A+ or A rating?
  • Commissions.  Assuming the same cost to the consumer, which carrier will pay you more?  How much is the policy fee?  Is it commissionable?
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