Quotes vs. Rates When You Buy Term Life Insurance
The primary difference between a quote and a rate is timing. Quotes come before you buy term life insurance, rates are solidified in the instant you close the deal to buy term life insurance.
Usually quotes and rates coincide in amount: if you were quoted $17/month, it's very probable that your life insurance rate will be $17/month as well. In a minority of cases, the rate you are quoted is not the rate you are offered, however. Quotes and rates are based on the same information, so why would they differ? Because when you request a quote, you are the one who supplies the required information, but when you apply for a life insurance rate, it is the insurer who investigates your mortality risk and comes up with the required information. Perhaps the insurer's findings will suggest a different health class than the one you designated on your life insurance quote form.
When you buy term life insurance, why bother with quotes instead of just applying to every insurer for a rate? Because the process that insurance companies employ to collect your information and calculate your rate takes weeks and requires you to undergo a medical exam. It's inconvenient for you and expensive for the insurer.
