Insurance Buyers Need to Compare Apples to Apples

If you’re shopping for life insurance, you owe it to yourself to get quotes from a variety of sources in order to ensure that you’re getting the most policy for the least premium. However, when you go out to get life insurance quotes it’s important to make each life insurer provide you with a quote that allows you to compare policies fairly.

This is becoming harder to do because of changes in the way that policies are marketed and sold. Your friendly neighborhood insurance agent is no longer the de facto best choice for life insurance. Discount online agencies sometimes achieve huge savings for customers by trimming their commissions; and national life insurers such as MetLife are becoming increasingly competitive.

The fact is that during these tough economic times, fewer Americans are buying life insurance. That makes the market smaller, which in turn makes competition more aggressive. Sometimes that benefits the customer. Other times marketers use smoke and mirrors to sell a supposedly good deal that isn’t there.

Sadly, policies that are marketed through social media tend to be more likely to be long on sales and short on substance. This doesn’t mean an online policy is necessarily bad; some online-only brokerages offer the best prices you’ll ever see. But for marketers who are more interested in ringing up sales than in serving customers well, social media has presented an excellent platform for scamming.

This creates a problem for consumers that is probably going to get worse before it gets better. Some analysts have been questioning the effectiveness of social media marketing because of Facebook’s recent (and well reported) stock trouble. But the disappointing stock performance is a function of Facebook’s revenue generation models; it has nothing to do with how successful marketers have been using Facebook’s free and fee-based services.

Marketers have been so successful, in fact, that social media marketing is a top priority for nearly every small, medium-sized, and large company that does any business or promotion online. And because Facebook (and other companies like it) need to make money from those marketing engines, they are unlikely to put stops in place that will make it more difficult for unsavory marketers to mislead potential customers.

As a result, some consumers will just stay away from the Internet when looking for life insurance quotes. That’s not necessarily a good idea, since a company that uses social media as its primary marketing engine and that keeps its other expenses lean will be able to deliver much better rates on the same policy (or a much better policy for the same rates) compared to your local insurance agent.

But when you do look at life insurance quotes from online sources, it’s important to make sure that you aren’t misled by the gray sales tactics that are sometimes employed. The best way to do this is to make sure that you’re getting each insurer to pitch you the same policy (competing on price) or the same price (competing on policy). That way you will be able to compare the policies side-by-side.  Visit this website to learn more about buying insurance and getting insurance quotes.

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