Comments on: How Are Life Insurance Premiums Set? http://amateurassetallocator.com/2009/09/03/how-are-life-insurance-premiums-set/ Amateur Asset Allocator Fri, 10 Feb 2012 18:16:33 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Benny http://amateurassetallocator.com/2009/09/03/how-are-life-insurance-premiums-set/comment-page-1/#comment-5214 Benny Fri, 04 Sep 2009 13:27:09 +0000 http://amateurassetallocator.com/?p=2367#comment-5214 Kyle, there are many other costs involved with life insurance quotes besides just expected mortality cost (or the reserves the company has to set aside to pay future claims). There is the cost to pay the life insurance agent, administrative costs, other distribution costs, and even the insurance company's desire to be competitive in a particular market. Yep, not all life insurance companies want to be as competitive as they can be. In fact, if they are too competitive, they may invite something that is known as "adverse risk". Careful giving out opinions that aren't true or I might write about you next time;) I'm sure you mean well, but needless to say, the issue of life insurance rates goes much deeper than a single number assigned by one underwriter. Kyle, there are many other costs involved with life insurance quotes besides just expected mortality cost (or the reserves the company has to set aside to pay future claims). There is the cost to pay the life insurance agent, administrative costs, other distribution costs, and even the insurance company’s desire to be competitive in a particular market. Yep, not all life insurance companies want to be as competitive as they can be. In fact, if they are too competitive, they may invite something that is known as “adverse risk”.

Careful giving out opinions that aren’t true or I might write about you next time;) I’m sure you mean well, but needless to say, the issue of life insurance rates goes much deeper than a single number assigned by one underwriter.

]]>