Article 9 of 9 in Getting the Right Life Insurance Policy
Buying life insurance online without the use of a life insurance agent, can be quick and easy. You can find some good deals on life insurance through the internet. If you're going to buy insurance without an agent, you'll need to invest time and effort in order to learn about the various types of insurance and make sure that you know what your insurance needs are. This research can be time consuming and still leave you with questions. A life insurance agent can be a valuable resource to help you understand life insurance and help you purchase a plan that fits your needs.
Benefits of a Life Insurance Agent
There are some important benefits to having a life insurance agent. A good agent can help you:
How a Life Insurance Agent Can Help You Save Money
If you're concerned about saving money, using an insurance agent will not raise the cost of a policy much, if at all. Here are some sound reasons to choose a reputable life insurance agent:
TIP: If your budget is a significant concern, tell the life insurance agent. They will work to meet your needs when shopping for life insurance. If they do not seem to respect your desire for cheap insurance, then go to another agent!
What to Ask Your Agent
Different insurance companies offer different rates for the same kinds of insurance with the same types of people being covered. A good agent will be able to find you different pricing on the same policy from different insurers. Here are some things to ask your agent:
How Life Insurance Agents are Paid
The compensation of a life insurance agent varies between companies and the types of insurance. They get a commission for the first year of coverage, which is substantially larger than the commission that they get when a policy is renewed. Life insurance is priced by the insurance company, who in turn pays a commission to your agent.
Life insurance agents are not allowed to share their commissions with you or discount your premiums in order to get you to buy from them. Just about every state has an anti-rebate statute.
These statutes make it illegal for an insurance agent to give a consumer a rebate or part of the agent's commission. The classic rebate is simply a kick-back. The agent sells a policy and then he pays you money.
The law typically prevents anything of value being offered or given as an inducement to buy. That's broad enough to include things like having the agent pay your application fees or first premium or even gifts or services offered to get you to buy the policy. All of these things are treated as if the agent was sharing his premium with you in order to get you to buy from him.
TIP: Be leery of agents that offer such gifts. Ask around and get a referral for a reputable life insurance agent.
Whether or not you use a life insurance agent is up to you, but you should consult one when you are shopping for life insurance to see how they can help you. Life insurance is an important purchase, and you need to shop for multiple quotes and get help from an agent when you need it.
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