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Budget Rates Life Insurance

Choosing a Life Insurance Agent

Since you are using the Internet, you should already know the best way to choose a life insurance agent: do some research on the Web. There are many Web sites dedicated to life insurance. Many of them will provide you with the opportunity to contact a life insurance agent. Contact several and then make a decision about whom you would like to do business.

The agent is not able to set the rate that you will pay. That is done by the life insurance company, under regulations put in place by your state of residence. If you have questions about this process, you should contact your state insurance department.

What a good agent can do for you is help you select the best company. This is not always the company with the lowest rate. Why? Because you may not qualify for the lowest rate! The life insurance company will determine your rate class based on the questions you answer on your applications, as well as a paramedical exam, and any information about you in the Medical Insurance Bureau (MIB) database and your state's motor vehicle database. The MIB is an insurance industry owned organization that records information about you any time you submit a request for life insurance.

A good life insurance agent will know the underwriting rules used by the different companies to classify applicants. You should provide your agent with all of your underwriting information so he or she can recommend the company that will give you the lowest rate considering your underwriting class. Remember, this is different than the lowest overall rate. If you start your application with the company with the lowest overall rate, and you do not qualify for this rate, you will be assigned a rate that might have been higher than if you had applied with the company with the best underwriting rate.

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