November 01, 2010

Carefully Choose Your Life Insurance Agent

Nowadays, with the multitude of products that are offered to us, it’s difficult to make wise choices. We would like to blindly trust our life insurance agent, but that could be one of the most serious mistakes that could be made. In addition to being expensive, that kind of mistake could really place your family in a precarious situation.

Make Your Own Analysis First

There’s no magic formula for choosing a good life insurance agent. You should start by making your own reflection and by determining by yourself your life insurance needs. Your life insurance agent should only validate your analysis and help you choose specific products tailored to your needs.

Choose Products According to Your Needs and Not Your Capacity to Pay

It’s vital to choose life insurance products according to your needs and not only according to what you are able to pay. Several life insurance salespeople start by asking you how much you are willing to pay for life insurance and sell you products accordingly. That’s simply ridiculous! Why pay if you don’t really need life insurance? And even worse, why go without or not enough life insurance if it’s necessary in your situation?

Life Insurance Agents Paid by Commissions

It should be understood that most life insurance agent are paid by commissions and that they do not always have your best interest at heart. By nature, many think of their own profit first. If your request it, life insurance agents are required to inform you about how they are paid.

It’s not rare to see agents exploit their own family; some even do this repetitively. As some might say, you can’t judge a book by its cover. So be vigilant even if someone was referred to you.

Salary-Paid Agents

Some life insurance agents get paid with a fix salary. These captive agents usually represent only one company; that limits your choice. Moreover, they can also receive bonuses according to their performance. Companies often push the sale of specific products more profitable to them.

Life Insurance Brokers

Life insurance brokers have access to a wide range of products but are still paid by commissions. If you pay more or if you choose some specific products, brokers can again benefit with higher commissions.

There’s no problem to pay a commission if you get a product tailored to your needs at a reasonable price. Take your time and ask for several quotes before making your final choice.

Simply Use Internet or Make Phone Calls

In this modern time, it’s simple to shop around on the web or using your phone. You can quickly obtain information on several companies and their products.

Never Lie and Tell your Family

To conclude, we also advise you to never lie to your insurance company because that could give them a reason not to pay you if you make a claim. It would also be wise to inform your family about your life insurance and to tell them what to should do if the worse happened to you.

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