For physical products, there is no quote, only fixed prices. This is because all the variables in the final delivery of goods are all determined, as is the final price of the product. There are also some of the services like Internet services where cost is fixed. But there are services for which the cost of the product varies with each individual, depending on the requirements and other variables. Hence, the price of the product is quoted based upon these variables. Insurance is one of such quoted services.

With insurance, the quote refers to the premium payable by the individual to the insurance company. Quote is just a preliminary estimate of the cost. The final price is worked out after examining the individual for various conditions, and the quote may increase or decrease. Further, a quote is also dependent on the various features of the products. Thus, quotes may be different for different companies based on the features for the same individual.

A quote for an individual policy is arrived at by understanding the needs of the insured and the profile: age, habits, history of diseases and the income. The quote is determined by fixing the need, i.e. the death benefit, at $100k, for example, and then asking a set of questions to find out the probability of living a long and healthy life.

Quotes can be obtained from insurance companies either through agents or online. On the Internet, one can obtain a quote faster, in five to ten minutes, by answering all the questions. There are other related sites that offer quotes and that claim to offer inexpensive quotes.

The advantage of getting a quote is that it can be used to compare with different companies. The disadvantage is that there is a clash in the priority of information. The individual downplays certain negative information that might lead to higher premiums and therefore the quote obtained seems to be less expensive, while in actuality, it will not be. Some tips to get best quotes are to give the information accurately, to quit smoking and to obtain insurance when one is still young.