How come I see ads for low cost insurance coming in my email but I can never get a quote for something that matches those premiums?

Asked by Katie

2 Answers

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Annoying, isn’t it? Looking in your inbox, you see life insurance offered for $15 a month. You look in your pocket and you see $15, so you call - and this is where it get’s testy.

Fact is, YOUR premium is closer to $35. Somebody lied! Actually, they didn’t lie. There is, in fact, someone out there who qualifies for that premium. Here is where the break
is happening. First, life insurance premiums are partly based on your age. The ad pointed to a person who is likely younger than you, so the cost is lower. Second, that was likely a term coverage offer, and the shorter the term the less expensive the plan. So, the ad was pointed at a 10 year term buyer. Your need is a 20 year need so you can easily see that 10 year term is 10 years off the mark. Your premium, when you buy the right plan for you, is more because 20 year term is more expensive than 10 year term. One more: the rate in the ad was for Superman, on a good day, with no Kryptonite in sight. You’re Batman (a guy in a suit), and your rate will be higher because you are not impervious to everyday risks, like the rest of us who don’t live in Smallville.

Marketing is a broadcast medium meant to get your attention. This is true for life insurance marketing, too. However, once your attention is focused, do a bit of work with a professional and look at your specific needs so there won’t be any regrets – like there would be if you purchased a cheaper plan that is the wrong plan all because the email in your inbox came with a “meaningless” $15 price tag.
| 02.06.15 @ 21:27
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$commenter.renderDisplayableName() — {comment} | 12.09.16 @ 13:44
Answered by Terry Grambo, Financial Adviser in Longview, WA
Welcome to mass marketing. Insurance quotes start with your age, then your gender, your profession, and on and on until you finally satisfy that specific Insurance Company's parameters and questions......all that information about you is put into a magic pot and bingo.....out comes a formula of pricing for YOU. | 09.16.15 @ 20:45
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$commenter.renderDisplayableName() — {comment} | 12.09.16 @ 13:44
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