Hi all - I’m new to the group and have what I hope to be an easy question.
Is there any downside to applying to many insurance companies and going through their application and medical screening processes in order to shop for rates?
Not anything I’m looking forward to doing and I don’t have anything to hide, but don’t want to overpay for such a longterm expense. Online premium calculators seem to me be used as advertising.
Company recommendations are appreciated too if that’s acceptable within the group.
I would recommend reaching out to a life insurance broker. When you put in multiple applications, it can cause a red flag In the system, if you keep putting in applications with SSN, DL, and financial information. Insurance premiums are only a few dollars off from each other when shopping.
Other carriers can see if you’ve applied elsewhere, but this is easy to explain on your agent report (e.g., “Client has also applied with ABC and XYZ but will only accept the best offer”).
I have no issue applying with multiple carriers if there are special circumstances like extensive records or previous declines.
For a typical case, you’re right—OP should work with a broker who can match them with the best carrier from the start. I wouldn’t recommend applying everywhere, both for the client’s sanity and mine.
First, contact a local independent life insurance broker. They can shop around for you and aren’t tied to any specific company, so they have more flexibility in how they treat you. With many products, you won’t need a medical exam.
You don’t need to go through a full application and medical screening just to get rate information. That should be discussed during your appointment with an independent broker or a captive agent before you start the application process.
I personally recommend Mutual of Omaha for term insurance since I’ve had great experiences with them.