Buying Life Insurance Direct is a HUGE Mistake! [4 Reasons with Photos]

Top reasons you’ll lose money buying direct

There are several reasons why buying life insurance direct from a life insurance company is a poor strategy. Here are some of the top reasons:

1. You’re limited to the products of a single life insurance company

If you deal directly with one life insurance company, you are limited to only their policies and product selection.  This insurance company will try to sell their best product to you, but that doesn’t mean it’s the best product for you. There’s a big difference.

You could end up paying more than what their competitor might have been offering.  Just because life insurance premiums are regulated, doesn’t mean all policies are the same. Every life insurance company offers different rates depending on how they evaluate your risks based on your health condition or lifestyle.

There are life insurance companies that evaluate heart conditions better than others while others are more strict if you have heart issues.  

2. You won’t know if their policy is the best on the market for you.

Unless you research and work with an agent who has access to multiple companies, you might be missing out on companies that will look at you favorably.

When looking for life insurance it’s really important that you compare multiple companies and their policies.  If you shop with only one carrier, chances are you are missing out on a better price.

The life insurance company you didn’t look at might not be as strict regarding your specific health, lifestyle, or family history.

Only an independent life insurance agent can help you shop around by looking at multiple companies. In most cases, they’ll know the best companies for you, based on the information you provide them.

The best and safest way to buy life insurance is with an independent agent. They can provide you the best life insurance policy that’s available on the market, instead of the best one that a lone life insurance company has.

3. No support when you buy direct

Buying life insurance can be really complicating to many people. There are so many parts to the process that can make it a bit overwhelming.

If you go directly through a life insurance company, you will not have any support during the life insurance application process. You’re the one doing everything. Now you will get some help from a company employee, but they’re biased towards their company. You won’t get unbiased feedback from them because they’re loyal to their company and not you.

The best part of using a life insurance agent, they’re working for you and your interests. They use multiple companies so there is no reason to be biased. They want to find you the best policy available on the market that you can qualify for.

You will get excellent and knowledgeable support during the entire process. This includes shopping your case at the beginning and helping you through the entire application process.

Applications take a while to get through the life insurance company’s approval process. Industry average is around 6 weeks unless you buy a no medical exam life insurance policy. If you go directly to a life insurance provider, you will have to wait to get an answer and you won’t have anyone to keep you informed.  Your Life Insurance Blog agent will keep you up-to-date and let you know how things are moving along throughout the process.

4. Rolling the dice on your approval

Another important point, let’s say your application is not approved?  Now what?

There’s a significant disadvantage when you buy direct. When you buy direct and you’re approved as applied- everything is great. However, if you get declined by the company or they change your rate- you’re left with trying to find another company and starting the process all over again.

That’s a nightmare that can be completely avoided using an independent life insurance agent. Who wants to fill out more applications or complete another medical exam and wait weeks not knowing if you’ll get declined or rated up again?

So how does this happen?

It could be as simple as accidentally leaving something out like a medication you took in the past or a medical condition that doesn’t seem significant to you- but is a major issue with a life insurance company.

If you have an independent life insurance agent on your side, they can take your original application to start your new application.  Your agent knows exactly what went wrong with the first application and can get you a better outcome the second time around.

When you don’t have knowledgeable support when shopping and during the application process, you might as well be walking around blindfolded.  You are going to waste a ton of your time trying to find the right company, and will probably not get the best policy for your needs. You’re setting yourself up for the possibility of getting declined or getting rated up to a more expensive health class.

Working with an independent life agent will save you time, money, and a great deal of stress by focusing on the best life insurance carrier for your exact situation.

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