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What happens if my life insurance premium is higher than my life insurance quote?

Do you prefer to learn by watching? We answer this question in a video below. Click here to jump ahead.

When you apply online for life insurance, you are shown an estimate of what you will pay for coverage. Our quoting tool takes many factors into consideration when calculating these estimated costs and is accurate 70 percent of time. What if your premium is different than quoted?

There are hundreds of different medical conditions and lifestyle factors that can affect life insurance pricing. The quoting tool takes into consideration the most common of these factors. For those few applications that include a condition or factor that isn’t calculated into the quote, this could affect your pricing. Your Quotacy agent can help you though.

Your agent will review your application before sending it off to the insurance company and will catch any “issues” beforehand so we can suggest the best option for you to obtain affordable coverage. If you indicate something in your application (example: you note that you skydive as a hobby) that may cause the company you chose to come back when the premium is different than quoted, we will contact you and let you know. We will also give you some options to consider.

Your agent will review your application before sending it off to the insurance company and will catch any “issues” beforehand so we can suggest the best option for you to obtain affordable coverage.

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We can:

  1. Keep the insurance carrier you originally picked.
  2. Keep the insurance carrier you picked, but adjust the face amount or term length to bring down your premiums.
  3. Go with a different carrier that we believe will lean more favorably to your specific issue.

Let’s look at an example.

Jane Doe is 30-years-old and applies online through Quotacy for a $500,000 20-year term policy with SBLI. Her quoted monthly premium amount is $19.

In her application, she admits she was charged with reckless driving 6 years ago. Her Quotacy agent contacts her to let her know that SBLI would likely not offer best class until after 7 years has passed, however Prudential would offer best class after 5 years. Her Quotacy agent then explains her three options:

  1. Stick with SBLI knowing SBLI would probably come back at the Standard class which means her premiums would go up to somewhere between $30-35 per month.
  2. Stick with SBLI, but drop her face amount from $500,000 to $250,000 so the Standard premium would still be about $19 per month.
  3. Switch to Prudential instead, knowing the chances of being approved at Preferred Plus (best class) are better.

The choice is completely up to Jane. Her Quotacy agent will proceed with whatever option she chooses and will keep her updated every step of the way.

When it comes to life insurance underwriting, your medical history and certain aspects of your lifestyle will come into play.

Some medical factors include:

  • Sleep apnea
  • Diabetes
  • Depression
  • Anxiety
  • Cancer

Some lifestyle factors include:

  • Aviation (single-engine plane flying, for example)
  • Foreign residency
  • Drug and alcohol history
  • Hang gliding
  • Reckless driving

We want to assure you that when you apply, your information stays confidential and is only shared with those who need the information to determine your coverage eligibility. There are state and federal laws in place to protect applicant information.

Curious about how much life insurance may cost you? Try out our term life insurance quoting tool. It will give you an instant estimate – no contact information required. We’re in the business to make buying life insurance as simple as possible.

 

Watch the Premium Is Different Than Quote Video

Video Transcript

Welcome to Quotacy’s Q&A Friday where we answer your life insurance questions. Quotacy is an online life insurance broker where you can get life insurance on your terms.

I’m Jeanna and I’m Natasha.

Today’s question is:
 
What happens if my life insurance premium is higher than my life insurance quote?

 
 
When you apply for life insurance through Quotacy you can get a quote pretty easily. No need to even hand over your personal contact information.

As you move through the quoting tool, you’ll enter more information to narrow down your quote.

There are hundreds of different medical conditions and lifestyle factors that can affect life insurance pricing. Quotacy’s tool takes into consideration the most common of these factors.

Quotacy's quoting tool health factors

The quotes you see from different insurance companies on Quotacy’s website end up being the final premium about 70% of the time.

Once you choose a policy to apply for completing the online application takes only another 5 to 10 minutes. While completing the application, you’ll be asked to check off if any health or lifestyle factors apply to you. Answering yes to any of these factors may affect your final price.

Quotacy's online application medical conditions

This is when your Quotacy agent does some behind-the-scenes work for you. Your agent will review your application before sending it off to the insurance company you chose. If there is a health or lifestyle factor you list on your application that that specific insurance company is strict with your agent will anonymously shop your application to other insurance companies we work with.

» Compare: Term life insurance quotes

If there is a different insurance company that will treat your application more favorably, your agent will present your options to you. You can stick with your original pick or switch insurance companies.

After you decide, your agent sends the formal application to the chosen insurance company. A life insurance underwriter at the insurance company will review your application along with other records as necessary such as your driving history and medical records. You may also need to complete a life insurance medical exam but it’s super easy. The examiner even comes to you wherever and whenever is the most convenient. The results of your medical exam are also reviewed by the underwriter.

This evaluation process is when it’s decided if you can be approved for coverage and what your premiums will cost. It is possible that the insurance company finds additional issues during the review of your case. If these issues mean they would be taking on more risk to insure you, their premium offer will be higher than your original quote.

If this is the case, your Quotacy agent will reach out to let you know and, in addition, provide you with some options. You can either accept the offer from the insurance company, stay with the insurance company but adjust the face amount or term length to bring down your premiums closer to your original quote, or go with a different insurance company that may treat your specific issue more favorably.

What happens if your premium is higher than your quote?

  1. Accept the offer from the insurance company.
  2. Stay with the insurance company but lower the face amount or term length to reduce the premium.
  3. Switch to a different insurance company that treats your condition more favorably.

 
 
Let’s take a look at an example.

Jane Doe is 30 years old and applies online through Quotacy for a $500,000 20-year term policy with Insurance Company A. Her quoted monthly premium is $19.

After the insurance company’s review of her full application they offer her Standard risk class because of a reckless driving charge from six years ago. This brings her monthly premium up to $35.

Example of driving record increasing final life insurance premium

Her Quotacy agent contacts her to inform her of Insurance Company A’s offer and presents her with three options:

  1. Stick with Insurance Company A even though her premiums will now be $35 per month instead of the quoted $19;
  2. Stick with Insurance Company A but drop the face amount from $500,000 to $250,000, so the Standard premium would still be about $19 per month, in line with her original quote; or
  3. Switch to Insurance Company B because they are more lenient with adverse driving records and are typically willing to offer Preferred pricing as long as the charge is at least five years old.

Jane’s options:

  1. Stick with the offer from Company A, even though her premiums will be higher than she thought.
  2. Stick with Company A, but lower her face amount from $500,000 to $250,000 to bring her premium to $19 per month, in line with the original quote.
  3. Switch to Company B because they’re more lenient with adverse driving records and can offer Preferred pricing on charges at least 5 years old.

 
 
The choice is completely up to Jane. Her Quotacy agent will proceed with whatever option she chooses. If Jane wants to walk away from the process altogether she can do so free of charge – no hard feelings.

Quotacy is your advocate in the life insurance buying process. We’re here to help you. We have access to over 25 of the top-rated life insurance companies and your agent will work hard to make sure you end up with the best policy for your particular situation.

» Calculate: Life insurance needs calculator

We also want to assure you that when you apply through Quotacy, your information stays confidential and is only shared with those who need the information to determine your coverage eligibility.

If you have any questions about life insurance, make sure to leave us a comment. And if you’re ready to get quotes, check out Quotacy.com. We’re here to help you find the best deal on the life insurance you want.

Photo credit to: NikolayFrolochkin

 

About the writer

Headshot of Natasha Cornelius, a life insurance writer, for Quotacy, Inc.

Natasha Cornelius

Marketing Content Manager

Natasha is a writer and content editor at Quotacy. She is also co-host of Quotacy’s YouTube series. She can't get enough of life insurance and outside of work is also working toward her Chartered Life Underwriter designation. Connect with her on LinkedIn.