I just got done hearing a commercial for American General Life(an AIG Company) to save 75% on your life insurance. That brings to mind, what is insurance. Is this a professional buy, or a commodity. It is interesting that American General, or GEICO, or Progressive among others would like you to believe that all products are the same and that buying insurance is like buying any commodity from shoes to computers to cell phones. Is that the case?
I can tell you that most insurance policies are different and when you switch companies, you may be switching to more, or less coverage. The problem is that most consumers don't know what they are buying until they hear from the adjuster "you're not covered for that". Suddenly, the 15% saved from the lizard, or Flo doesn't seem so important, and protection becomes the most important thing. That is when you realize that you should have bought protection from a professional agency.
How about the life insurance beneficiary who finds the death claim is being contested because the life insurance application filled out online wasn't done properly. Suddenly the savings(if there really was any savings) becomes a $250,000 contested claim.
So, I guess, the point is that when you purchase insurance like a commodity, beware of what you are buying.