Prices are dropping! Save 60% to 70% on term life insurance! We’ve all read the articles and seen the advertisements. We would all like a piece of that less expensive pie to protect our families. But, is it real? Does the agent you are talking to really know how to find those rates? Does your agent really want to find those rates?
Reading an industry magazine, a colorful advertisement caught my eye with the statement “Seize a new opportunity with Lifefirst – the powerful new term product from Foresters”. It presented a comparison with five other companies showing just how great their pricing is. Using a male age 45, best health class, purchasing $600,000 of 20 year term, it stacked up like this. Foresters was $855 annually. Shanendoah was $978, Old Mutual $1236, Americo $1338 and Chesapeake $1396.
Clearly Foresters is a force to be reckoned with, right? While this ad was designed to attract agents to sell Foresters, and it will, the same information will go out to consumers who, with the careful guidance of their Forester’s agent, will come to the same conclusion.
So, is this a true portrayal of the best of the best offerings? I used my Compulife system to put this in perspective. At $855, Foresters came in at number 32. The best rate came from Western Reserve Life at $726 a year. That is $129 a year less, a savings over the life of a 20 year term of $2580.
I have shared before the fact that saving 60% to 70% is really no great trick simply because there are some unbelievably overpriced products out there. This ad didn’t dig deep enough. Provident Life is hoping you will buy their 20 year term insurance for $1416 annually, a full 95% higher than Western Reserve.
Bottom line. You need a good independent agent to sift through all of the nonsense and bad deals for you. With 2000 companiies vying for your life insurance business, let them do the work. If you feel the need to double check and make sure they are trying to pull a Foresters on you, find a free on line quote system and check it out.