#3 of 7 in the Life Insurance Quote Tricks series
The “Monthly -vs.- Annual Trick”
Some “tricky” agents will run your quote as if you were going to pay it annually (one payment per year) and then explain it to you as “monthly”. Annual premiums are less expensive than monthly. So these “tricky” agents will quote the annual premium price and then divide by 12 and tell you that’s the monthly cost.
For example, let’s say a annual premium amount for your policy is $500 and if you pay monthly it is $45 each month (or $540 over a year period); The tricky agent will just take the $500/12 months = $41 per month. He/She will tell you it’s only $41 per month (in this example) when it is really $45 per month. See how the tricky sales person was able to beat the honest agent competition by $4 each month?!
When the policy is issued, you’ll see it’s more expensive and if your like most other busy people, you’ll just take it because you don’t want to go through the whole process again. So ask your agent to quote you monthly and annual that way you’ll catch any funny business.
The problem here may seem small, it’s only a $4 per month lie, but do you want to give your families security to agent who will lie to you? Plus, if they’ll sell their honesty for only $4 per month, what would they do for more money…?
Life Settlements FAQ – What If I Die Shortly After Selling My Policy?
Life Settlement FAQ – What if I Change My Mind?
Life Settlement FAQ – When Will I Get My Money And From Whom? And What Happens After?
Life Settlement FAQ – Is My Information Private & Confidential?
Life Settlement FAQ – Broker or Provider Representative?
Life Settlement FAQ – Do I have to sell all of my policy?