Life insurance. A way of protecting your assets for your loved ones in case of the worst possible accident. You’ve seen the MetLife commercials – many agencies offer quotes – but how do you know you’re getting the best bang for your buck? How can you have a real discussion with your insurance broker about life insurance?
Life insurance sellers can ethically respond to the requests of their consumers by asking a few questions first. Many sellers jump to immediately sending quotes and an application before listening to the needs of their clients. The best agency will reach out to each individual, sending a brief needs analysis and having a conversation. Then, the more complex issue of rate classes can be determined.
What exactly is a rate class?
A rate class is a bracket that displays the cost of coverage for applicants. This number is based on preliminary information in the quoting stage. The information is based on mortality information. So, rate classes are divided into three or four categories, or “brackets”: Preferred Best, Preferred, Standard Plus, Standard, with table ratings added.
The problem that’s out there in the realm of insurance is that many providers underwrite coverage of potential customers. In order to offer accurate quotes, agencies must offer the desire and the skills necessary to determine which bracket customers best fit into.
Unrealistic expectations at the quoting stage can prepare customers for disappointment.
The early stage of quoting is the perfect time to get the number that matches your situation. Only then will the numbers actually be meaningful to you. When asking for a quote, you are in a critical moment to discuss things that will help you in important fiscal decisions. Treat the initial steps not as a buying situation, but as a life choice. Don’t let quoting fears shy you away from buying life insurance!