Choosing a life insurance policy can be overwhelming. With dozens of providers out there plus numerous insurance products to pick from, it can be daunting.
If you have zero knowledge when it comes to life insurance, the first question should be—do I need life insurance?
If you’re the primary provider or have significant debts that are more than your assets, then you definitely should consider life insurance.
However, if you don’t have any dependents and have sufficient assets to cover debts and other expenses, then you probably can skip getting a policy.
After deciding if you’ll need life insurance or not, the next important question is: How much life insurance do I need?
A quick Google search will yield advice ranging from “Get a policy that is 5-10 times your annual salary”, or “Multiply your annual salary by the number of years left until retirement”.
Now comes the hard part, deciding which life insurance is best for you.
Before you go ahead and start looking up stuff online though, it pays to get at least a basic background on what life insurance is and how it works. Let’s start by explaining the different types.
Types of Life Insurance
Here’s a quick primer on the different types of life insurance to give you an idea on how the whole thing works.
- Term Life – The cheapest option, also known as “pure life insurance”. You choose the length of coverage and get protection for that specified time frame. Once the policy ends, you either renew or sign up for a new one.
- Whole life – Also known as permanent life insurance because it lasts your entire lifetime. The premiums you pay go into paying the death benefit and cash value component.
- Universal – Consider a mix of term and whole life but with more flexibility.
With a bit of background info on life insurance, perhaps the most logical next step is to actually try to get a quote. So instead of reading through extra stuff that may or may not be related to what you are looking for, you can just jump straight in for an actual quote and get an idea of how much you’ll pay.
Our free life insurance quote generator is perfect for this. Simply enter basic information like your location, birthdate, type of insurance policy, amount of coverage, and some contact info and you can quickly get an estimate. You can try it out here. It takes less than a minute to complete.
But if you’re still on the fence and thinking you’re better off getting some help, then agencies like SelectQuote can help.
What is SelectQuote?
SelectQuote is an independent agency that acts as a middleman between customers and insurance companies. Here’s how it works: You (customer) contact SelectQuote to inquire and get a quote for a life insurance policy. They, in turn, will “shop” for the best matching coverage for you via their select life insurance company partners.
As of this writing, they are working with 11 life insurance companies (check out the list below).
Aside from life insurance (term life, mainly), they also sell auto and home insurance, senior care insurance, and others. The company sells thousands of new policies each year and is licensed to operate in 49 states.
How SelectQuote started
SelectQuote was founded in 1985. It was one of the pioneers of using comparisons from several high-rated insurance companies to come up with solutions and best potential policy offerings to customers.
Based in San Francisco, they now offer auto and home insurance, along with Medicare supplement insurance solutions. CEO Charan Singh and COO & CFO Robert Edwards are the top executives running SelectQuote.
Just recently (March of 2019), SelectQuote formed a strategic relationship with Crump Life Insurance Services, a wholesale distributor of life insurance and retirement products. They work very much like SelectQuote, linking as much as 200,000 financial service specialists with products made by 100 of the top-rated insurance companies.
Per Crump Life Insurance Senior VP and General Manager Jim Duff, “The relationship begins with SelectQuote becoming a member of Crump subsidiary Tellus Brokerage Connections’ independent agency network, This affiliation supports both organizations’ long-term strategy of growth, bringing SelectQuote access to the Tellus resources, processes and products, while strengthening SelectQuote’s support of and offerings to clients,”
Life Insurance companies working with SelectQuote
I mentioned earlier that SelectQuote is not an actual life insurance company. Rather, they are an agency which links customers with actual insurers.
This is supposed to make the whole process of purchasing life insurance easier for people. The reason being because companies like SelectQuote will take care of the necessary steps of connecting you with the “ideal” insurance policy for your needs.
So who are these life insurance companies that work with SelectQuote? Here’s the main list:
- Prudential Life
- American General
- Banner Life
- Globe Life
- Protective Life
- Transamerica Life
- United of Omaha
- Transamerica Life
- William Penn Life
- Voya Financial
How to use SelectQuote
Now that you know how SelectQuote operates, it’s time to learn about the actual steps you need to take if you want to purchase a policy via their services.
Step #1: Contact SelectQuote via their website or toll-free number
Step #2: During the initial contact, they will ask you to fill out the online form to provide information about yourself. If you have taken the phone-call route, the agent will get this information from you.
Step #3: This initial Q&A process will include getting your personal data like gender, age, height and weight, and birthdate. They will also ask if you already have an existing life insurance policy.
Step #4: As you go through the forms, these are the things you should expect to be asked:
- Amount of coverage you are planning to get (10, 15, 20, 30 years)
- If you use tobacco or other nicotine products
- Your driving history and high-risk activities
- Your lifestyle (to get additional information on your health)
Step #5: The last part is getting your contact information so they can call or email you to provide you with the details and update you regarding your application. Expect to receive a call from an actual life insurance agent for an assessment of your needs so they can match you with the right product.
The call will revolve around the following steps and topics:
- First few minutes will be to discuss and verify the initial information you provided
- The agent will then get the details of what type of policy you need and come up with a package that best matches it
- The agent will then reach out to the actual insurance companies selling that type of policy
- If that initial back-and-forth sounds good, you should expect to get scheduled for a medical check-up
- Once everything is set, the agent will review the policy with you to make sure everybody’s on the same page with the details and terms and conditions
- The actual policy will then be mailed out to your address
SelectQuote Life Insurance Pros and Cons
There’s no perfect business or service, especially when it comes to life insurance. That being said, let’s take a look at the top reasons why you should or shouldn’t use SelectQuote for purchasing life insurance.
- They are a big insurance agency that has partnered with multiple insurance companies. This can help in getting the ideal policy since they have plenty of partner insurers
- Makes the process of purchasing life insurance easier as their agent will take care of reaching out to their partners and finalizing the policy
- The process of shopping for life insurance can be tedious, especially if you don’t have much knowledge about it. SelectQuote provides customers with a simpler way to get multiple quotes so you can get the best potential policy
- While their list of partner insurers is plenty, other insurance agencies offer a much wider range of options
- By working with a larger number of insurance companies, other competing insurance agencies (smaller ones, usually) will have a better chance of getting a policy for customers with known health risks such as:
According to some other reviews online, SelectQuote does not usually sell policies to persons with high-risk conditions.
- One could argue that since SelectQuote is a big company, their sales agents are more “pressured” to hit quotas, thereby potentially making them more aggressive with their pitches and in closing deals.
- Sales agents also tend to upsell you with their other products (home and auto insurance)
Other SelectQuote Reviews and Feedback
Since I wanted to make this review comprehensive, I checked out what other people are saying regarding SelectQuote. Here’s some of the feedback that’s posted online:
- Trustpilot – SelectQuote review
- They gave SelectQuote an average score of 4-stars (Great) based on 8,321 reviews.
- Better Business Bureau Customer Reviews – SelectQuote
- Customers gave SelectQuote an overall rating of 2 out of 5 based on 15 reviews
- Yelp reviews
- Yelp users gave it an overall rating of 2 stars out of five
Some websites go as far as to claim that SelectQuote is a scam. However, this is simply not true. Being a huge life insurance agency has its perks and advantages, however, it also brings a few negatives.
What negatives, you ask? Mainly, the way the business is set up to gather and acquire new customers. See, agents from SelectQuote are paid only a quarter of the commission of what an agent who works alone or at an agency.
This probably leads to their agents (SelectQuote) being a little more pushier with their sales tactics because of the pressure to sell dozens of policies on a monthly basis.
And where does this lead to? Naturally, the quality of the overall experience drops, since the agents will seem to be hurrying up to make the next call and sale. And life insurance, as you know, is a big deal.
This is why working with an insurance agent or agency that will provide you with top-notch support and service is crucial. After all, you will be handing over your hard-earned money over to them to pay for your policy.
You want someone who can answer all the questions you have whether it’s during the initial call or after signing up for the policy. It’s just normal for any customer to expect some sort of after sales support especially when it comes to life insurance.
And this is perhaps the reason why most of the customer reviews you’ll find about SelectQuote are a mixed bag. The main theme surrounding the cons (from my perspective) as I was reading the comments and feedback were mainly related to the less-than-OK after-sales service.
But then again, this is highly subjective as there are also some reviewers who found their service sufficient.
Keep in mind too that since SelectQuote is an insurance agency (not an actual insurance provider), they can’t be rated by financial rating companies like S&P, A.M Best, or Fitch.
This means that if you get a policy through SelectQuote, you would want to check out the financial company that they have recommended for you (AIG, Banner Life, etc.,), as they’re the ones who will have actual ratings.
This might help in making a sound personal decision on whether or not you wish to proceed with it or not.
That all being said, there’s no reason for anyone to not check out SelectQuote and their services. Just keep in mind some of the information I mentioned here, so you’ll have an idea on what to expect.
Should you want more information about possible life insurance options, please reach out to us directly to receive a free quote.