Why is my premium higher than my quote?
Insurance shoppers often get frustrated when they’re quoted one price for a life insurance policy only to be accepted for a health class that is much lower than you expected and at a price that is much higher than you were given.
The reason for what can sometimes be a significant difference between the price you’re quoted and the premium you end up with in the end is that a quote is just that, a rough estimate as to what an insurance company thinks your premiums might be.
The thing is, you’re given a quote before the insurance company’s team of underwriters have had the chance to look at your application, to learn about your history, or to consider your health exam. The underwriters are the people who determine your level of risk as an insurance applicant and attach a price tag to your insurance accordingly. It’s once you’ve given them as much information as possible about yourself, and gone for a medical examination, that underwriters are able to give you a more accurate price for your life insurance policy.
Sometimes, a person might submit all of the paperwork and go for their medical examination only to receive word from the insurance company that they’ve been accepted but only at a health class that is lower than that which they applied. This will often be listed as an ‘other than applied’ approval, because at the time when they were quoted for their premiums and their health class the insurance company didn’t have all of the nitty-gritty details about their health history and lifestyle that they need to make their decision and to place them in a health class.
What’s more is that sometimes when you go for your insurance application’s medical examination, a previously undetected illness or condition may be discovered by the physician or in one of the tests that was ordered. This could also be the reason you’re accepted for a lower health class.
There are also occasions when an insurance shopper will give the wrong information when using an online quote generator or speaking to an insurance agent. Even by saying you’re a few pounds lighter than you actually are can have an affect on the premium price you will pay in the end or the health class for which you will be accepted.