Let’s say you go to an website for term life insurance quotes, plug in you information an you get a list of premiums and carriers. Are those the lowest priced carriers? Probably not. The website will only show you carriers the brokerage are able to represent or are willing to represent, not all the carriers out there. Certain carriers are closed or heavily restricted to independent brokers, like Northwestern Mutual and Cincinnati Life. Knowing this is especially important to tobacco users for certain age and amounts, because there are wide variations in tobacco rates and you’re not likely to see anywhere near the best rates in online term comparison quotes. Online quote system gives the illusion that your seeing the lowest rates. But that is really only an illusion. They only show you their carriers. It may be a long list, but not a comprehensive list.
My rule of thumb is that Genworth is by far the best term carrier because they have very competitive premiums and a superior conversion option that outdistances the competition hands down. Conversion is a key element. However, if another carrier has a far better price for whatever reason, saving my client money for decades is a more important consideration than conversion, so I recommend that carrier. Most of the time I can recommend a carrier I represent, but if I’m aware of a lower premium option for a carrier I can’t represent, I’m willing to make that recommendation and walk away. It’s the same ethic that is in place when recommending whether to replace a policy. A good life agent is always willing to serve in the client’s best interest, even if it means walking away.