Let's face it. Buying life insurance is not something most people look forward to doing.
We all know we need it. But most of us want to put it off. In the past, getting life insurance quotes involved finding an agent, making an appointment, and going through a complicated medical underwriting process.
It's no surprise why most of us want to avoid that process.
Nowadays, we can get life insurance quotes online. There are lots of options out there. Heck, just Google the term “life insurance quotes,” and you will see 181,000,000 search results.
The top four and bottom three results are ads from firms who paid to be on page 1.
How do you know which one to choose? Who offers the best service? The best prices? The most painless application process?
I have good news! We're going to answer those questions and tell you the company we recommend in this post.
Getting the Best Life Insurance Quotes
Before you go shopping for life insurance, it's essential to think about what you want that insurance to do for you. In other words, think about how much life insurance you need. Often, this exercise is where people get stuck. What factors determine how much insurance we need? Here are some things life insurance can do for your family:
- Replace lost income – how many years income should the insurance replace?
- Payoff debt – mortgage, auto loans, credit cards, etc.
- Fund future purchases – i.e., provide for kids' college education
- Supplement retirement – replace money lost to underfunded retirement accounts
- Business needs – pay off loans, funds for key person buyout
- Final expenses – funeral, burial, etc.
Agents often calculate needs based on a multiple of income – say five to ten times.
For instance, if you make $50,000 a year, a 5x calculation means you'd buy $250,000 in coverage, and 10x would mean $500,000.
Everyone's family situation is different. A single person in their twenties needs far less life insurance than a married couple with three kids, a mortgage, and two car payments. The income multiple is probably an oversimplified method.
Use the criteria above to start the process of determining the amount. If you don't know, the online marketplaces have calculators to help.
What to Look for in Online Insurance Sites
Like traditional insurance agencies, online sites that offer life insurance quotes should have at least these five things:
- Independence – In other words, they do not work for or get paid more from one company. Their decisions on the company used should fit your need, not the agent. Captive agents are those who represent one primary company. They are rapidly becoming the dinosaurs of the life insurance industry. When you have sales goals to meet for your company, that introduces a bias that shouldn't be there.
- Quality insurance companies – Life insurance quotes should come from multiple companies, not just one. And any company offered should carry high ratings from the rating agencies (A.M. Best, Standard & Poors, Fitch Ratings, Moodys). You want to know the company will be there when your loved ones file a claim.
- Needs calculator – These calculators can help you determine how much insurance you need. It's always best to have an idea before starting to shop. These calculators help you dig a little deeper into the process of determining the right amount.
- Easy application process – The application process is where many agencies struggle. Insurance companies sometimes have page after page of questions about your health, family, lifestyle, and finances. They often require a medical exam, especially if they find risk factors in the application that cause concern. Technology has made this process much shorter and less painful.
- Choices in coverage – Once you determine how much insurance you need, it's time to decide what type is best (term, whole life, universal life, variable universal, etc.). With agents paid on commissions, it is not uncommon to have them recommend a higher-priced product that pays them more money. I'm not suggesting that's the norm. But you want to make sure you're getting an unbiased, independent person when determining the type of coverage.
The site should have articles and resources available that you can review on your own to learn about the various types of insurance we mentioned earlier. An educated consumer can make better decisions. Take the time to educate yourself before you begin looking for life insurance quotes.
Know the difference between term and permanent life insurance, between whole life and universal life. Know the difference between universal life and variable life. Research the various types of term insurance (annual renewable, five, ten, twenty, thirty-year term) to know what fits your need.
Most sites have blog articles or a resource page where you can find the information you need. A glossary of insurance terms may also be helpful, even a buyer's guide. The more educational resources a site has, the better.
If these resources seem “salesy” or appear to be promoting a specific product or type of insurance, be very careful. Educating is not selling. You'll know the difference when you see it. Stay away from the sales-oriented websites.
A Word About Compensation
Traditional insurance agents earn commissions on products they sell. That introduces an unnecessary bias into their recommendations.
The best online marketplaces pay their agents and representatives with a salary. That removes the bias toward pushing a higher-priced product. You are much more likely to get a product that fits your needs, not one that pays a higher commission.
Why We Like Quotacy for Life Insurance Quotes
The first thing to know about Quotacy is they check all of the boxes we talked about earlier – independence, quality companies, useful calculators, an easy application process, and coverage choices.
They also have a ton of educational resources where you can learn about the various kinds of life insurance available.
Let's look at each area separately.
The team at Quotacy is not beholden to any one company. On the contrary, they will submit quote requests to as many as twenty-five companies to find the best rate and most suitable company for your situation. Since their agents and staff are all salaried employees, they have no conflict of interest to push a policy that pays them more than another company.
That assures that biased toward compensation doesn't enter the picture. It means the agents work in your best interest. That leads to the next important element.
Below is a partial list of companies they access and their ratings:
If you need other types of life insurance, here are some companies they might use:
That's one of the best menus of companies on the market. Combine the list with the independence of their team, and you have a recipe for success when seeking life insurance quotes.
Let me say at the outset that most online sites offer calculators to help you determine how much insurance you need. What I like about Quotacy's version is its simplicity. The calculator asks eight questions to get you started. If you need help before answering the questions, there is a Q & A section at the bottom of the page to get you on the right track.
The calculator is quick and easy to use. You can see the calculation in real-time as you answer each question. You can look at several what-if scenarios. For example, you can see the recommended amount using a ten-year income replacement vs. a five year, paying off part of your debt vs. all of it, including providing and not providing funds for your children's college education.
It's streamlined and straightforward to use.
Easy Application Process
When you start your life insurance quote process, you enter some basic information – zip code, date of birth, do you smoke, and your gender. The next screen has a slider where you can choose the amount of coverage you want. If you've used the calculator to determine the amount, simply move the slider to that amount and select the number of years of coverage you need. Like the calculator, your rate appears as you change the amount and number of years of coverage.
Here's what that looks like:
Once you finish these choices, the next screen asks a few questions about your health. There are four questions in this section.
Once finished, you'll see quotes from the best companies. If you don't like the price, you can use the slider to change the amount and term, as before, and rates from the listed companies will change in a matter of seconds.
The entire process takes less than five minutes. You can choose the price and company you want to use and complete an application. It's as simple as that!
Most people using an online insurance marketplace for life insurance look for the lowest priced options. Term insurance is almost always the choice. If you have needs that require permanent insurance, Quotacy doesn't disappoint there either.
You can work with an agent who will help you determine the best type of insurance to help you accomplish what you need. If you want to learn about the different kinds of insurance before speaking with someone, there are pages of helpful articles with a Q & A with specifics on every post.
And remember, the Quotacy team does not receive commissions. They are salaried. They have no reason to do anything but help you find what you're looking for. If you don't know, they will help you determine what you need.
Quotacy – The Company
The brothers wanted to take their practice to more people and knew that doing that online was the best way to do it. That's when Quotacy became a reality. Quotacy is a technology-based life insurance agency.
Why do I say that?
It's their technology that allows them to serve more people, more quickly than in the brick and mortar world they grew up in. Technology backs a fast, simple, streamlined application and quote system.
Another differentiating factor that makes Quotacy unique in the online life insurance quotes world is the in house underwriting team. These experts know how to evaluate an application and make sure it goes to a company with the best chance of getting a policy issued at the best price. They know the companies well. They also know what the underwriters will and will not accept.
A Word About Pricing
Remember, insurance is underwritten. Companies need to know the risk they are taking. There is no way around that, regardless of the agency you use.
Because the underwriting team at Quotacy has the experience and brings a significant amount of business to these companies, they can often negotiate a better rate or get someone insured that may not typically qualify.
When you get your initial quote, that quote comes from the information you entered into the application.
Once the underwriters review it, they may catch things they know will be an issue for a particular company. Or they will spot something they know companies will ask for in a more detailed medical examination.
As a result, once you've gone through that process, the quoted rate may change. It could be higher or lower than quoted. This is a normal part of the process.
In most cases with medical conditions, the rate will be higher.
Many people think they don't qualify for life insurance due to health or financial reasons. For some, that may be true. Before assuming you can't get coverage, give Quotacy a shot at helping you.
It's in these conditions that Quotacy shines.
They know their companies. If a rate comes back higher than what they think it should be, they will send it to another company for review. The rate may still be higher. Often, they can get it lower than the initial company offered.
A Focused Approach
Quotacy is not trying to be all things to all people. They stick to their main business – life insurance. That means they don't sell homeowners insurance, health insurance, or any other property and casualty product. They do offer disability insurance and a unique value-added document management program called LegacyShield.
LegacyShield allows you to keep all your essential documents in one secure place and grants access to all the documents needed to those you've authorized.
The goal of this conversation was to take the mystery out of getting life insurance quotes online. I've said it in other posts, and it bears repeating. An educated consumer is a better consumer. Quotacy's website offers a wealth of resources to help you understand life insurance to make an informed decision before buying.
Once you determine the need, the application and underwriting process is streamlined and effortless to use. The Quotacy team spent a lot of time and money to ensure their customers get what they need at a reasonable price with the best service possible.
If you're in the market for life insurance, you should take a few minutes and visit the Quotacy site. We did and were more than pleased with what we found.
Fred started the blog Money with a Purpose in October 2017. The blog focused on three primary areas: Personal Finance, Overcoming Adversity, and Lifestyle. During his time at Money with a Purpose, he was quoted in Forbes, USA Today and appeared in Money Magazine, MarketWatch, The Good Men Project, Thrive Global and many other publications.
In April 2019, Fred, along with two other partners, acquired The Money Mix website. To focus his time and energy where he could be the most productive, Fred recently merged Money with a Purpose with The Money Mix. You can now find all of his great content right here on The Money Mix, along with content from some of the brightest minds in personal finance.