Product Pricing

[insurancemet]

Hi, A couple of MOO agents said that sometimes their products cost more, one said that you get what you pay for. The other agent said they have or may have better customer service which is worth it. My question, do you think in general their prices are alot more expensive or just slightly or have you found it competitive at times and if the cost is higher, do you think it is worth it. Someone may say insurance is insurance, if it is worth the higher cost, in what? Claim payout, better customer service? Thanks for any input.

 

[briko3]

Death benefit and possibly cash value accumulation and riders. All things being equal, how do you justify higher price?

 

[insurancemet]

That's what I'm asking, so I guess what your saying is it doesn't make a difference then which company, right? So you asked it in a succint way, thanks. So, to clarify what your saying is you can't justify higher price given that death benefit etc is all equal.

 

[briko3]

That's my view on it. Now, if I heard that a particular company is TERRIBLE with service and delay payouts, etc., then I probably wouldn't go with them regardless of price.

In my opinion, the insurance industry is so competitive, I don't see that happening.

 

[djs]

With life insurance, the biggest concern is whether or not the company (or at least the policy) will be around when a claim is filed.

With cash value policies, there are differences in how they work, and the premium is not always indicative of the price. If the premium is higher, but the cost of insurance is the same or lower (along with all associated fees), then it can be a better buy than a lower premium policy that has a higher cost of insurance.

Term policies are easy to calculate the cost of insurance. Permanent policies are not always spelled out very neatly.

Dan