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What is a life insurance niche? We answer this question in today’s Quotacy Q&A Friday by explaining why some life insurance companies cater to different market shares and how knowing this can save you money.

Video Transcript

Welcome to Quotacy’s Q&A Friday where we answer your life insurance questions. Quotacy is an online life insurance agency where you can get life insurance on your terms. I’m Jeanna and I’m Natasha.

Today’s question:
What is a life insurance niche?

There are hundreds of life insurance companies and not all companies evaluate applications in the same way. Different life insurance companies cater to different health or lifestyle niches in order to stay competitive within this industry.

An example of a life insurance niche would be sleep apnea. One insurance company in particular may offer a better risk class to individuals with sleep apnea than another insurance company.

So how does knowing this save you money on life insurance?

If there’s something in your life that you could put into a specific health or lifestyle niche, then it would be beneficial for you to apply with an insurance broker or an independent agency so they can shop your case to different life insurance companies.

Quotacy, for example, is a life insurance broker. We have access to multiple life insurance companies and our experience allows us to direct you to the company that will favor you the most which means you’re going to get the best price. We’ll tell you about a recent example to help explain what this all means.

life insurance and pregnancy

Jennifer, a 29-year-old pregnant woman in her third trimester, recently applied for a 30-year $1,000,000 term life insurance policy through Quotacy. After running her quotes and seeing her life insurance company options, she chose a company that was going to approve her at a risk class of Standard Plus, which is the third best risk class possible, and her premiums would have been $85.31 per month.

life insurance risk classes

When her Quotacy agent reviewed her application and noticed she was pregnant, he recommended that they move her application to Banner instead. And he advised this because one of Banner’s niches are pregnant women. Banner accepts a pregnant woman’s pre-pregnancy weight while most other companies take her as-is weight. As you can imagine for a woman in her third trimester, this can make quite a difference.

Jennifer decided to trust her agent’s opinion and agreed to apply to Banner instead. Banner approved Jennifer at Preferred, which is the second best risk class possible, and her monthly premium dropped from $85.31 per month to $57.67 per month. This is a savings of over $330 annually.

life insurance risk classes

We have access to multiple life insurance companies and our experience allows us to direct you to the company that will favor you the most which means you’re going to get the best price.

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This is just one real-life example of one particular niche. Other combinations that vary across life insurance companies include depression and anxiety, active military duty, driving record, marijuana use, asthma, aviation, criminal record, ADHD, foreign travel, startups with VC funding, and family history. Just to name a few.

Common Health and Lifestyle Niches

  • Depression/Anxiety
  • Active Military Duty
  • Driving Record
  • Marijuana Use
  • Asthma
  • Aviation
  • Criminal Record
  • Foreign Travel
  • Start-ups with VC Funding
  • Family Health History

Whether you have a few health issues or a quirky lifestyle, we would love to help get you life insurance coverage to protect your loved ones.

If you have questions about life insurance, make sure to leave us a comment. And if you have any questions regarding getting today’s topic check out this blog: Quotacy Shops Your Case – What Does That Mean?. Otherwise, tune in next week when we talk about the differences between term life insurance and whole life insurance. Bye!

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.