When you go to Costco, why do you think you’re getting such a great deal? It’s usually because you’re buying higher volumes of merchandise in an environment of low overhead expenses. Insurance is no different than any other commodity. The more you buy, the lower the rate per thousand is. Not only that, but the insurance companies that work exclusively with independent brokers have very little overhead (that’s our responsibility). Consequently, there are some very attractive rates out there, especially with this fiercely competitive market.
Does Costco encourage people to walk in, buy one or two items, pay for them, walk out and come again the day after to do the same? Of course they don’t! They want you to buy a whole cart full of stuff every few weeks! Insurance companies are no different. If you buy several policies at several different times, there will be administrative costs attached to each policy separately and factored into the pricing. However, if you consolidate all your coverages together, you will pay a lower cost per thousand and only one administrative fee for that policy contract.
Solution: Take an inventory of all your life insurance coverages, including supplementary group coverage, association sponsored plans, mortgage life insurance with your lender, those old policies taken out when you were a child, etc. Then, conduct a through audit of these policies using our Insurance Maximization Strategy (IMS).
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