SelectQuote may be one of the best known comparison tool for finding life insurance. They are one of the originals - starting in the 1980s by having a direct call-in service to get life insurance.
Today, they do much more than life insurance (although that is still what they are most well known for). And now you can do everything online, without having to call in. But the premise is still the same - they help you shop around and compare different insurance companies to get the best coverage for your needs.
How does SelectQuote compare to the best term life insurance companies? We break it down in our SelectQuote review here.
- Insurance broker that helps you choose the right insurance
- Connect with a licensed insurance agent to answer your questions
- High reviews, long term track record
Who Is SelectQuote?
SelectQuote is an insurance broker. They help people find the right insurance at an affordable price. SelectQuote does get a commission if you purchase an insurance policy. They are a member of American International Group, Inc. (AIG).
SelectQuote has a rating of four out of five from 8,332 reviewers on Trustpilot. They also have an A+ rating with the Better Business Bureau.
In 1985, SelectQuote started the direct marketing of term life insurance. They’ve since added the ability for customers to search for insurance through their website. Today, SelectQuote claims to be America’s #1 term life sales agency. SelectQuote is based in San Francisco, CA.
What Do They Offer?
While SelectQuote does not directly sell insurance, they do help people find term life insurance, whole life (permanent) insurance, auto insurance, home insurance, and medical insurance. Some of the insurance companies SelectQuote works with include:
- Pacific Life
- Mutual of Omaha
In all, there are 12 insurance companies that SelectQuote represents. As of 2017, every insurance company on the list has an A− to A+ by AM Best for financial strength. AM Best is America’s leading life insurance rating service.
SelectQuote claims that it can find the right policy and price for people with existing health conditions, including:
- Heart disease
- Being overweight
- Sleep apnea
SelectQuote is licensed in every state except South Dakota. Because representatives are fully licensed in your state, you can ask them detailed insurance questions. They can then provide answers specific to your state’s rules.
You can ask SelectQuote questions to find out how much insurance you need, how long you need protection, if you should get coverage for your spouse and children, plus a lot more.
SelectQuote sells both term and whole life insurance. People are often confused about which one to get. A SelectQuote representative can clarify for your unique situation. The basic differences between these two types of life insurance are that term life is cheaper by 10 times to 20 times that of whole life; but term life lasts for a predefined number of years, whereas whole life lasts for your entire life.
Once you find an insurance company through SelectQuote, you may be asked to take a medical exam and provide your health records. Depending on how quickly you are able to get information back to the insurance company, it generally takes six to eight weeks to complete the underwriting process.
Once underwriting is complete, you’ll receive an offer. The policy will go into effect upon payment of the first premium. You have between 10 to 30 days (depending on your state) to accept the policy or reject it and receive a credit of paid premiums back to your account.
If you have a few bad health habits, expect to pay extraordinarily high insurance rates. For example, if you use tobacco, rates are likely to be double that of non-tobacco users. You can still speak with a SelectQuote agent to get an idea about rates, but they are probably going to be prohibitive.
If you are willing to stop tobacco use, ask the agent how long you should wait before trying for another quote. The range is usually between one and five years of being tobacco-free.
Another common area that people can correct to receive lower rates is the overall health of their body. If you are overweight, put together a plan to help you reach a target weight, based on what the insurance agent says. It will certainly be a lot of work to make such large lifestyle changes, but in the end, your checkbook will definitely thank you.
What if you already have a life insurance policy? If you are shopping around for cheaper or better life insurance, don’t cancel your current policy until the new policy has been accepted and is in force. Keep in mind that some whole life insurance policies have cash value surrender penalties. Rather than completely relying on an insurance agent’s information, check your legal or tax advisor as well.
Are There Any Fees?
Quotes through SelectQuote are free. You only pay for the actual insurance policy that you purchase. This might make you wonder, “How does SelectQuote make money?” They are paid a commission once a policy is approved, delivered, and accepted by you.
How Do I Open an Account?
You can receive a free quote by visiting SelectQuote at https://www.selectquote.com or by calling 800-670-3213, where you can speak with a licensed life insurance agent.
Is My Money and Information Safe?
Is It Worth It?
If you need help shopping for the right insurance at the right price, having someone knowledgeable in your corner can make a big difference. That is the service that SelectQuote provides.
The service is free to use, so trying it out by getting a quote doesn’t cost you anything. This is similar to what you get at other firms like PolicyGenius.
- Pricing - 80
- Ease of Use - 70
- Products and Services - 90
- Customer Service - 80
Robert Farrington is America’s Millennial Money Expert® and America’s Student Loan Debt Expert™, and the founder of The College Investor, a personal finance site dedicated to helping millennials escape student loan debt to start investing and building wealth for the future. You can learn more about him here.
He regularly writes about investing, student loan debt, and general personal finance topics geared towards anyone wanting to earn more, get out of debt, and start building wealth for the future.
He has been quoted in major publications including the New York Times, Washington Post, Fox, ABC, NBC, and more. He is also a regular contributor to Forbes.