The term life insurance marketplace is big and there are many agents who will do anything to get your business. These are the 3 biggest scams in the online term insurance marketplace and how to avoid them.
1. Lead Aggregators Posing as Life Insurance Agencies
A lead aggregator is a website where they sell your information to up to 6 agents (sometimes more)! As soon as you submit your request, within minutes you’ll start receiving calls. Unless you want your phone to blow up for over 2 weeks, then I would be on the lookout for these types of websites
So how can you tell what websites aren’t lead aggregators? Easy. Look for 3 things:
- About Us section. Look for pictures, emails and contact forms to make sure it’s a real company with experienced agents ready to help you.
- Phone Number displayed prominently. Every agency wants you to call them and will display their number on every page. Lead aggregators won’t do this because they are marketers selling their leads.
- Read the fine print. Buried in a website is the fine print that will say multiple agents will be contacting you.
2. Captive Agents Telling You They Offer the Lowest Rates
A captive agent can only offer you 1 option. In order to find the best term life insurance rates, you need an agent who will compare ALL the individual life insurance policies on the market. Independent agents can represent as many companies as they want. They work on behalf of the consumer, not the life insurance company.
The best way to find an independent agency on the web is to make sure their website features multiple life insurance companies. If they aren’t displayed, then they are probably captive and you should look elsewhere.
3. Bait and Switch or the “Preferred Plus Rates” Scam
“Preferred Plus” is the best rate class you can qualify for. Only around 10% of consumers can qualify for these rates. Some call center life insurance agents are trained to quote “preferred plus” rates knowing very well the consumer cannot qualify for them and the rate will be higher once the approval comes.
This is a bait and switch technique - Offering you a low rate to earn your business then coming back with a much higher rate. Many consumers will take the higher rate once it’s approved because they already invested their time and energy into it. The bait and switch scam banks on this way of thinking.
Be mindful of these term life insurance scams while you're searching online and you’re well on your way to finding the best rates you can qualify for.
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