I got an email ad for life insurance for $15 a month. When I try to get it at that price, no one has it. Seems like someone is just lying to get some more business, to me. What gives?
Answers | 3
One word is helpful here: marketing. Here is what I mean. It is not a lie because someone out there can buy that policy for that price, but you have found that it is not YOU. In most cases, the lower the marketed price, the lower the age of the person for whom that policy is designed, the shorter the term of the plan, and also the least costly rate class may be used. Put another way, this "marketing target" is a 32 year old female (life insurance for women costs less than for men of the same age), who is in excellent health whose plan is not the 30 year plan that you are looking for. Any difference of those factors will mean a difference of cost for you.
Life insurers, of course, will not advertise the opposite because the price won't attract a likely buyer. Like this: male, 59 years old, 25 year term, Standard Table 4 rate class, high face amount. That person's premium will never ever be $15 a month, yet that person probably lives in your city and received the same ad. The spirit of marketing is get your attention with a low rate but, again, it's not a lie. Find article at MoneyTips titled "How To Get Accurate And Meaningful Life Insurance Quotes" which offers some detail on how your personal information affects your rate. Key words are "your personal information" since that is what your actual premium amount will be based on. My best advice is to ignore the ad and check with your advisor for the best information.