The difference between a good and a bad life insurance agent is tremendous. Don’t just assume that because you have someone before in the past for your home or auto insurance that they will make the best life insurance agent.
Step One: Learn About the Basics of Life Insurance
The world of life insurance is more complicated that it really should be, whole life, universal life, riders, endorsements, premiums, uggh – it is too confusing. However often it is that confusion that gets many consumers into hot water. My first piece of advice for anyone shopping for life insurance is to learn the basics of life insurance.
Life Insurance can generally be broken into two types: Cash Value policies such as Whole and Universal Life insurance and Pure Life insurance such as Term Life Insurance.
Step Two: Decide What Type You Want:
After having learned about the different types of insurance, you likely should get a good solid idea of what you want, BEFORE You call an agent. Why is that? Because many insurance agents will likely push you to purchase the more expensive kind. Therefore it is often in your best interest to go out and speak with people that you trust, such as a financial adviser or a financial guru such as Suze Orman to better understand what may make the most sense for you and your family.
Step Three: Call Multiple Different Insurance Agents
Now that you know what type of life insurance you want, you will need to find a good agent that can help you get it. This may be slightly harder than you would expect as many insurance agents are dedicated to only selling cash value life insurance policies such as Whole or Universal life. Some insurance agents will go so far as to not even respond to your request for a term life quote.
For those that do respond, you can jump to step four.
Step Four: Ask your Agents Some Tough Questions about Your Situation:
No matter whatever someone else tells you – life insurance is always case specific. 99% of life insurance quotes will not be specific to you, they are really just estimates. You will need to speak with a licensed agent to discuss you and your families past and current medical history. Your job. What you like to do for fun. Your driving and medical history and if there is anything dangerous that you like to do.
Reviewing these things will really help you to ascertain a future insurance agent’s knowledge of your situation. Does the agent have any experience writing cases with people that have diabetes? Does he think your diabetes will be an issue. Often good insurance agents, will have to research your case before coming back to you with some recommendations.
Sum it Up:
After speaking with a couple of insurance agents about your situation, you likely should have a good feel for who knows what they are doing and who is willing to really help you buy a life insurance policy.
Scott W Johnson is an insurance entrepreneur and blogger. He owns WholeVsTermLifeInsurance.com a division of Marindependent Insurance Services LLC.