Suze Orman SelectQuote Review

We aren’t typically big fans of insurance-related celebrity endorsements.

Most celebrities probably don’t know the first thing about the product they’re advertising, and aren’t likely insured by the companies they represent. They’re much more focused on the process and what rates they’re going to receive for doing said advertisement. Shocker, we know.

In fact, most ‘standard’ insurance companies don’t have programs with liability limits high enough to protect the super rich or offer property insurance with high enough limits to cover their multi-million dollar homes and vehicles…LeBron and State Farm…we’re looking in your direction. Companies that put time into their marketing spend more, usually because they’re signing celebrities on, which makes sense.

On the other hand, Suze Orman’s new pitch for SelectQuote has some validity. Not only was she licensed to sell life and health insurance at one point, she actually has a policy with them, according to her recorded video testimonials on SelectQuote’s website.

Of course, we like the tag line of her pitch: “The Truth About Price Quotes.” We here at The Truth About Insurance think it has a nice ring to it.

Who/what is SelectQuote?

• They are a direct marketer of term life insurance
• Started all the way back in 1985
• Now the #1 term life sales agency in the country
• They currently represent about a dozen life insurers and some 70 different types of policies

SelectQuote is an insurance agency…a very big, national agency. In fact, their website points out that they are “America’s #1 Independent Term Life Insurance Agency.”

Number ‘1’ at what isn’t clear, but our educated guess is that they are the largest by insurance premium volume, or in-force, policies in the U.S.

How they would be able to determine that is unknown, as independent insurance agencies do not have to disclose either piece of information to anyone… Perhaps it’s #1 in customer service? It is nice when a company lives up to our expectations in that department. Who knows?

Okay, we found out. Apparently they have written over $500 billion in life insurance coverage since inception. Now that is a provider with some seriously productive agents. Perhaps they’re #1 in terms of a financial strength rating?

Either way, as an independent agency, SelectQuote represents several life insurers and has the ability to shop your unique profile with all of them in order to find you the absolute cheapest term life insurance policy.

That’s the benefit of any independent insurance agent; multiple carriers equal multiple quotes. Multiple quotes equal the best deal. It is recommended you always look at all your coverage choices with an independent agent.

State Farm, Farmers, Allstate and other ‘captive’ insurers can typically only offer one quote. Take it or leave it.

That explains their combined multi-billion dollar advertising budgets. They appeal to us emotionally as a means to sway us to buy a potentially much more expensive policy, rather than rationally, which would lead all of us to less expensive coverage. That doesn’t bring them the revenue they need, however.

Similar to the way you buy gas from whichever gas station is selling it at a lower cost (assuming the policy coverage is the same…and the gas is the same). It’s just good marketing on their end. The higher rates they have people paying at, the more money they’re making.

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Why does Suze like them so much?

• We have to hand it to Suze this time
• She likes the idea of shopping around for stuff
• And so do we, especially things that are largely a commodity
• Orman also recommends term life as opposed to other types of life insurance, which is generally a good call

Re-read the section above. Suze’s whole pitch revolves around the need to look at what’s provided in terms of coverage with multiple companies to get the best deal.

Just like us, she recommends term life, as opposed to whole life insurance, with the former a low cost option that offers high limits of coverage as a means to protect your dependents in the event of your untimely passing.

Oh yeah…and they are probably paying her a million dollars for the endorsement as well.

What is our final word on SelectQuote?

• They seem to make it easy to shop around for life insurance
• Since they act as an independent agent
• SelectQuote only represents companies with A- to A+ A.M. Best ratings
• But be sure to look at insurers outside their organization as well

You need to look for coverage with an independent agent. Period. But our current expectations of SelectQuote is that they’re a solid company.

Whether it’s SelectQuote or the local independent agent in your neighborhood, if you don’t get multiple quotes you’re doing yourself a disservice.

Normally, we stand firm against the celebrity endorsement, but this time it’s different. This celebrity knows what she’s talking about, and isn’t just solely worried about her commission rates.

Now, if we had to critique something, it would probably be the amount of hairspray she uses, or her choice in jackets…

But in all seriousness, you may still want to compare SelectQuote’s offerings to those of another independent agent/agency to see what else is out there.

They don’t represent every life insurer out there, just a handful they seem to like and/or get paid commissions by. There are many more lines of business out there, spread out, and with their own agendas.

To ensure you don’t leave any stone unturned, it could be wise to look outside their umbrella of affiliated companies, for your own financial protection. Don’t stick to what the media considers a core business simply because they pay top dollar for advertisements. A smaller, senior business who has been around for far longer may end up providing you with cheaper rates, even if they don’t have a commercial airing on television every hour on the hour.

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