Life Insurance Cost

[Mason]

Do all life insurance company policies cost the same price no matter what company you purchase it from?

[jpg7n16]

Nope.

Like car insurance, it can vary widely from company to company.

[dczech09]

Any two insurance companies are not the same. I am a premium auditor and work with commercial insurance, so I see several policies everyday. The underwriters and actuaries rate things differently and statistically calculate things differently. Believe it or not, there are actual algorithms that go into calculating premium and the premiums are not subjective, drawn from a hat, or the same between companies.

Also, insurance companies have to charge premiums in order to stay solvent. One company may have more claims to pay out than another company and one company may be more vulnerable to risk depending on the types of coverage they write. All of this is factored in.

If your demand for life insurance is inelastic, then go for a company that specializes in life policies and is not a jack of all trades. Pick a company with a good reputation for life insurance and see what they can do for you.