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Premiums Plunge on the 25 and 30 Year Level Term Life Insurance Policies

Quotesmith.com, Inc. (ticker: QUOT, exchange: NASDAQ) News Release - 1/27/2003

Premiums Plunge on the 25 and 30 Year Level Term Life Insurance Policies

Insurer competition, improved mortality create bargains for life insurance shoppers on the popular 25 and 30 year level term policies

DARIEN, IL (January 27, 2003) -- Quotesmith.com (NASDAQ: QUOT) has today released the results of an extensive term life insurance price comparison study which shows that average composite premiums for the popular 30 year level term life policy have dropped by 18.7 percent over the past year while rates for 25 year level term life policies have fallen by 12.4 percent. Composite rates for the 10, 15 and 20 year level term life insurance policies have remained essentially unchanged from one year ago.

Quotesmith.com examined the actual rates of more than 90 leading U.S. life insurance companies for a $250,000 term life insurance policy as compared to prices being charged one year ago. The sample peer group consisted of healthy male and female applicants who do not use tobacco ranging in age from 35 to 70. California rates were compared for the 10, 15, 20, 25 and 30 level term life policies.

Conclusions from the comparative survey include:

  • Showing the largest drop of all term life policy categories, average premiums for the popular 30 year level term life policy have declined by 18.7 percent over the past year
  • Average premiums for the 25 year level term life policy have declined by 12.4 percent over the past year
  • Average premiums for the 10, 15, and 20 year level term policies remain substantially unchanged from last year
  • Average premium rates for females remain at 29 percent below those charged for males

Commenting on current term life market prices, Quotesmith.com CEO Robert Bland said, "Clearly, life insurance companies have now made it more attractive for consumers to purchase 30 year and 25 year term life policies. After a ten year period of steady declines for the 10, 15 and 20 year policies, it appears that those premiums have leveled off – for the time being. The significant drop in cost for the 30 and 20 year term policies over the past year is indeed welcome news for life insurance shoppers who might wish to lock in these low rates for many years to come.

The following table represents actual non-tobacco term life premiums that are available in the California marketplace as of January 23, 2003.

$250,000 Term Life Sampler
Guaranteed Annual Premiums/Guaranteed Level Term Period

Male Premiums
Age 10 Yr 15 Yr 20 Yr 25 Yr 30 Yr
35 $      118 $      132 $      168 $      262 $      310
40 $      138 $      168 $      225 $      365 $      402
45 $      212 $      290 $      368 $      585 $      660
50 $      292 $      440 $      558 $      925 $   1,028
55 $      450 $      650 $      820 $   1,425 $   1,918
60 $      670 $   1,035 $   1,298 $   3,630 $   4,000
65 $   1,150 $   1,798 $   2,570 $   4,942 $   4,942
70 $   2,025 $   3,090 $   4,800 $   6,492 $   6,492


Female Premiums
Age 10 Yr 15 Yr 20 Yr 25 Yr 30 Yr
35 $      105 $      122 $      148 $      218 $      238
40 $      125 $      158 $      190 $      278 $      302
45 $      178 $      218 $      285 $      418 $      445
50 $      240 $      290 $      392 $      555 $      588
55 $      332 $      402 $      580 $      862 $   1,115
60 $      475 $      660 $      895 $   2,400 $   2,990
65 $      710 $   1,080 $   1,688 $   3,900 $   4,292
70 $   1,165 $   1,840 $   2,952 $   4,928 $   4,928

Quotesmith.com maintains a continually-updated insurance information Web site which publishes up-to-the-day accurate premium quotes, policy coverage information and latest financial stability ratings of more than 300 leading auto, life and health insurance companies. Visitors to the company's Web site are free to purchase insurance from any company shown without the involvement of a face-to-face salesperson.

At its Web site, Quotesmith.com provides easy-to-use reference tools and educational materials to assist insurance shoppers. Every Quotesmith.com term life illustration comes complete with two full pages of policy coverage and reference information, including published underwriting guidelines. Another unique feature is that every Quotesmith.com term life quote also shows the latest independent ratings from A.M. Best, Fitch, Moody's, Standard & Poor's and Weiss Ratings, Inc.

Instant, real-time quotes for life insurance amounts up to $50 million are available at www.quotesmith.com 24 hrs. per day, 7 days per week.

Recent Accolades

As previously reported, on November 20, 2002 Forbes.com announced that Quotesmith.com had won the distinguished "Forbes Favorite" award for life insurance in its Winter 2002 "Best of the Web" online edition. The following are excerpts from the winter 2002 Best of the Web editorial review:

"Today, thanks to last year's purchase of Insure.com, the site is flush with useful features. There are some 3,000 articles You'll also get quotes from 92 life insurers. A real stand-out feature, however, is that Quotesmith can provide competitive and customized quotes for people with specific health concerns such as diabetes, asthma, or heart disease. It also gives quotes for those involved in risky hobbies, like scuba diving and flying."

Notes to Table

Final premiums and coverage availability can vary depending upon age, state availability, height, weight, hazardous activities, personal and family health history. The sample non-tobacco use premiums shown above assume California residency and may include: American Fidelity Assurance Company, Oklahoma City, OK, form TL-01; Americom Life & Annuity, Overland Park, KS, form 101; Banner Life, Rockville, MD, form RT-97; Canada Life, Atlanta, GA, form 10761-10773; Empire General Life, Shawnee Mission, KS, form EGT-06; Federal Kemper Life, Long Grove, IL, form R-3210; First Colony Life, Lynchburg, VA, form ULFCL99; First Penn-Pacific Life, Schaumburg, IL, forms BT-1000 & UL-1101AA; Great-West Life & Annuity, Greenwood Village, CO, form J348; Liberty Life, Greenville, SC, form T295 (01-01); North American Life & Health, Chicago, IL, form LS108A; Ohio National Life, Cincinnati, OH, form 92-TR-1; Old Line Life, Milwaukee, WI, form LTG-2000D; Old Republic Life, Chicago, IL, form IL-D0000; Protective Life, Birmingham, AL, form TL-06; West Coast Life, San Francisco, CA, form 001139200. California and Illinois rates used for illustrative purposes. Premium rates shown and policy forms may vary by state or not be available at all in certain states. Certain premiums for residents of New York and New Jersey may be higher than those shown and can be obtained by visiting www.quotesmith.com. Some premiums shown may be graded premium life policies and/or term-like universal life policies. Term life premium rates always escalate after initial rate guarantee period. California and Utah dba Quotesmith.com Insurance Services: CA #0827712, #OA13858; UT #90093.

About Quotesmith.com

Founded in 1984, Quotesmith.com owns and operates two comprehensive online consumer insurance information services, www.insure.com and www.quotesmith.com. Catering to self-directed insurance shoppers, Quotesmith.com provides a comprehensive array of comparative auto, life and health quotes, combined with news, information and decision-making tools that are not available from any other single source. Insure.com plays home to thousands of originally authored articles on various insurance topics that are searchable by subject. Visitors to the Company's Web sites are able to obtain instant quotes from more than 300 leading insurers for twelve different product lines, achieve maximum savings and have the freedom to buy from any company shown. Quotesmith.com also provides personalized insurance brokerage and policy placement services for its customers. Shares of Quotesmith.com trade on the Nasdaq SmallCap Market under the symbol "QUOT."

Cautions about Forward-Looking Statements

This announcement may contain forward-looking statements that involve risks, assumptions and uncertainties pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. This announcement also contains forward-looking statements about events and circumstances that have not yet occurred and may not occur. These forward-looking statements are inherently difficult to predict. Expressions of future goals and similar expressions including, without limitation, "intend," "may," "plans," "will," "believe," "should," "could," "hope," "expects," "expected," "does not currently expect," "anticipates," "predicts," "potential" and "forecast," reflecting something other than historical fact, are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. Investors should be aware that actual results may differ materially from the results predicted and reported results should not be considered an indication of future performance. Reported Web site activity and/or quotes are not necessarily indicative of any present or future revenue. The Company will not necessarily update the information in this press release if any forward-looking statement later turns out to be inaccurate. Potential risks and uncertainties include, among others, Quotesmith.com's ability to successfully launch and realize revenues from new products and services, potential business risks associated with generating revenues from the insure.com platform, anticipated losses, unpredictability of future revenues, potential fluctuations in quarterly operating results, seasonality, consumer trends, competition, risks of system interruption, the evolving nature of its business model, the increasingly competitive online commerce environment, dependence on continuing growth of online commerce and risks associated with capacity constraints and the management of growth. More information about potential factors that could affect the Company's financial results are included in the Company's Annual Report on Form 10-K for the year ended December 31, 2001, and the Company's Quarterly report on Form 10-Q for the quarter ended September 30, 2002, both of which are on file with the United States Securities and Exchange Commission. Quotesmith.com, insure.com, LTCompare and QuotesmithPro are service marks of Quotesmith.com, Inc. All other names are trademarks of their respective owners. Copyright 2003. All rights reserved. Quotesmith.com, Inc.

SOURCE Quotesmith.com, Inc.

 CONTACT: Bill Thoms, Executive Vice President, (630)515-0170, ext. 202, bthoms@quotesmith.com

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