SelectQuote Review - Read this Before You Apply!
But, does an agency's sheer size provide any real value to their customers? Or to the contrary, are their clients rushed along to keep the numbers high and the shareholders happy?
This review of SelectQuote Insurance Services will provide you with some insider's information to help you decide if they are the best agency for you. We've also provided some customer reviews, a list of the companies they represent, and a brief overview of their history.
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Here’s what we'll cover in this post:
Who Is SelectQuote Insurance Services?
Before going public in 2020, SelectQuote billed itself as the largest independently-owned insurance agency in the nation. They offer a variety of home, auto, life, and health insurance products from a handful of highly-rated providers. The company was founded in 1985 by Charan Singh, a former Charles Schwab employee from San Francisco, California.
Today, the publicly-traded company struggles to keep its shareholders happy as the company's stock has dropped more than 90% since its IPO two years ago. Most of Selectquote's founding executives have retired, but the company still operates call centers in California, Colorado, Florida, Kansas, and Iowa. They currently specialize with medicare, term life insurance, and expanded into auto insurance around 2013.
SelectQuote uses a variety of advertising mediums to promote their comparative shopping service, but most people recognize the company as a result of their TV commercial featuring Doug Dupuy. This commercial has been airing for almost two decades, so chances are, you've seen it.
Is SelectQuote A Scam?
SelectQuote might not be a crowd favorite, but they are not a scam. If you are looking for affordable life insurance, and are in excellent health, they could be the perfect fit for you. Their agency is licensed to sell life insurance in every state and their agents are well-trained.
If you have some health issues, are over the age of 70, or need anything other than a traditional term life insurance policy, SelectQuote probably won't be your best option though. The same is true for anyone that is purchasing life insurance for anything other than family protection.
The agents at SelectQuote have weekly sales quotas that the are expected to meet each week. When I worked there about 5 years ago, the magic number was at least twenty new applications per week. This might not seem like a lot, but keeping track of over eighty new clients each month is no easy task.
For this reason, complex cases tend to get pushed aside for the easier clients in great health. Even SelectQuote's commercials focus on healthy clients that need short term policy. In reality, most clients are not in perfect health, and they'll need coverage for more than 10 years.
Bait and Switch Marketing Practices
The other issue that clients often gripe about is the fact that SelectQuote's website does not provide a quote to their users after they enter their information. Selectquote wants you to speak with an agent (and explain your life story) before they'll even offer you an accurate rate. This may seem like due diligence, but it's also by design.
If you show any hesitation about moving forward with you application, their agents are trained to use your words against you, and guilt-trip you applying. We understand that everyone needs life insurance, but most agencies have no issue with providing sample rates upfront, before you speak to an agent.
Which Life Insurance Companies Does SelectQuote Offer?
SelectQuote Insurance Services is an independent agency that represents a total of nine life insurance providers. Eight of these nine carriers currently offer traditional term life insurance products to qualifying applicants. These companies include:
- American General (AIG)
- Legal & General (Banner Life / William Penn)
- Lincoln National
- Mutual of Omaha
- Pacific Life
- Protective Life
- Savings Bank Life Insurance (SBLI)
Each of these providers is very strongly rated, but overall, SelectQuote's options are limited. Comparing rates from even a handful of insurers is better than working with a captive agent, but the more companies your agent represents, the better your odds are of saving money.
In the insurance industry, a captive agent is limited to their company's products, while an independent agent will compare rates and options from every company they are appointed with. SelectQuote represents only nine companies, but they will always have more options than a captive agent will be able to offer.
Does SelectQuote Charge for their Shopping Services?
There is no cost to apply for a life insurance policy from SelectQuote Insurance Services, or any other independent life insurance agency for that matter. When you accept your policy, the insurance company pays a commission directly to your agent or agency.
The life insurance providers even offer a "free-look" period once your policy is approved. This allows you to review your offer for insurance with no cost or commitment once your policy is approved. If you decide not to accept coverage, no money is due.
In the past, SelectQuote required their agents to ask their clients for a credit card every time they submitted an application. This allowed them to "bind" their client's policy, but it also forced them to accept temporary or conditional coverage while waiting for an approval.
The idea behind this strategy was to offer their clients some protection after they completed their medical exam. However, for some customers, the concept of being forced to provide a method of payment before knowing their final rate was a bit offsetting.
SelectQuote's Customer Service Reviews
Selectquote's Reviews on TrustPilot
Compared to their competition, SelectQuote's customer reviews are less than average. On TrustPilot.com they have collected more than 9,448 reviews from their verified buyers, but are ranked dead last at 94 out of the 103 Insurance Agencies listed. They have currently have a trust rating of 3.9 stars out of 5.
While this speaks to the enormous amount of business that SelectQuote processes, it also illustrates the underlying issue of substandard customer service.
This recent review from Jerre explains his frustration with their process and it illuminates some of the issues that come with processing a large volume of life insurance applications.
SelectQuote's Google Reviews
As of May 2022, Google shows only nine reviews for SelectQuote's office in San Diego with a 2.1 star average. SelectQuote's main office in Kansas has a 2.9 star rating on Google, but more than 40% of the reviews are only 1 star. Most of the reviews illustrate the same issues that accompany large call centers with sales quotas.
SelectQuote's Yelp Reviews
Yelp offers the most scathing reviews of SelectQuote of the three review sites. It is also important to note that anyone can leave a review on Yelp or Google, while TrustPilot only collects reviews from verified buyers. With this is mind, SelectQuote has a 2 star average rating with 148 reviews.
Our Outlook on SelectQuote Insurance Services
SelectQuote is not a scam and they are not a terrible company. As a former employee, I can honestly say that most of my clients were very happy. However; like any giant corporation, they are not perfect. In my experience, the customers that didn't fit their "mold," experienced the most issues.
If you are in great health and under the age of 50, purchasing life insurance from SelectQuote should be a breeze. Their agents are fast and efficient at what they do, and as long as you do not have extensive medical records, getting through the application process should be relatively easy.
SelectQuote probably isn't the best option for clients in less than prefect health.The same is true for anyone that needs life insurance for business purposes, estate planning, or pension maximization. In these situations, we believe it's in your best interest to work with an agent that has the time to provide you with the help you need.
We also believe that showing our client's an estimate of their rates upfront is better than making them speak to an agent to obtain a quote. This provides our potential clients with a chance to review their budget before they feel pressured into making a decision on the spot.
If you need a basic term policy and are in excellent health, SelectQuote is a legitimate life insurance agency that can help you get the coverage you need. With that being said, they are not the best fit for everyone.
Like any call center, their agency experiences a lot of turnover. As a result, they are constantly hiring relatively inexperienced agents. Their software can do a lot of the work for them, but if you fall into one of the categories below, we recommend working with an agency other than SelectQuote.
- Want to Save as Much Money as Possible
- Want to Compare Options from more than 9 Companies
- Are Over the Age of 60
- Have Health Issues, a Dangerous Job, or Hobby
- Need Permanent or Whole Life Insurance
- Need Life Insurance In A Hurry
- Anyone Who Would Rather Avoid an Exam
- If You Want to View Your Rates before Speaking to an Agent
- Estate Planning
- Business Protection
- Loan Collateralization
- To Fund a Trust
- Pension Maximization
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Managing Partner and Co-founder
Cliff is a licensed life insurance agent and one of the owners of JRC Insurance Group. He has helped thousands of families of businesses with their life insurance needs since 2012 and specializes with applicants who are less than perfect health. In his spare time he enjoys spending time with family, traveling, and the great outdoors.
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