#2 of 7 in the Life Insurance Quote Tricks series
The “Rate Class Trick”
A “Rate Class” is a broad classification of general characteristics, for example: All men who are between 35-45 yrs old with no medical illness and having a height to weight ratio of .38 – .40 are in the “super-duper class” (…just made that up for illustration purposes). Some “tricky” agents will quote you at a better “rate class” than you currently qualify for, in order to give you…”the lowest quote”, knowing full well that you will never qualify for that rate. Then after the medical exam, when the truth comes out, and the life insurance policy is issued at a higher rate, they'll just say that the underwriters must have found something in your record that caused them to increase it.
*In all fairness, sometimes this does happen, but if you ask an agent what class they quoted and then ask what those class requirements are, you will know if you're dealing with an honest professional. If they sound fishy with their answer, have them email for fax you the written class requirements.
This also happens with online term life insurance quoting “tricksters”. They set up their quote software to reflect the absolute best rate class possible which equals lowest quote possible; Which only about 10% of the population qualify for. They know you'll be overjoyed at the low quote and choose them for your term life insurance policy. However, when you get the real bill each month, it will be nothing near the quote.
Note: if you have any health issues, it is impossible to get an accurate quote without submitting an application. The underwriter of your case will determine the quote at that time.
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?