Life insurance agents are salesman. Salesman are naturally inclined (and often times trained) to offer the product that makes them the most money. And by law you must purchase life insurance through a state licensed agent.
So how are you supposed to find the best life insurance policy when an agent is naturally inclined to offer what’s in their best interests and not your own?
Simple. Work with an experienced and independent life insurance agent.
There are 2 types of life insurance agents. Captive agents and independent agents. Captive agents can only sell 1 life insurance company or are limited to a small group of life insurance companies they can offer (that usually pay the most commissions to them).
Being an independent life insurance agent means you have access to any life insurance company and aren’t employed by any specific company. A good way to find an independent life insurance agent is to find a website that will compare life insurance quotes online. If they display rates on their website from multiple carriers, they’re most likely independent.
Finding an independent life insurance agent is just one portion of it. The most important part is making sure your agent has the knowledge and experience to find the most competitive rates for you.
It’s your agents job to secure you the cheapest life insurance policy, so choosing your agent is crucial.
You’ll want to make sure your agent is experienced and not a kid in a cubicle trying to hit sales quotas. When you speak with that independent agency you found and get your agents name. You can search any state’s department of insurance for your agents name and know exactly when he/she was licensed. Search “California Department of Insurance”, look for the agent search section of the website and type in your agents name. It’s public information. If an agent has been in business longer than 3 years, you’re most likely working with someone experienced.
If you have any health issues, work with an agent that specializes in your risk. Every life insurance company looks at each individual risk differently. Just because your friend has asthma and received “preferred plus” (the best health class), doesn’t mean you’ll receive the same rates because you have asthma too. Your risk will vary with different meds, symptoms, diagnosis dates etc. And the life insurance company may view it differently based on your unique Asthma (or insert any health condition here).
So how do you find an agent that specializes in your specific health issues? Perform an online search for “life insurance with xyz condition” and find the most informative article and contact the agent that wrote. You will come across “fluff” articles from marketers that will sell your information, so make sure the website you find has a phone number displayed clearly and demonstrates knowledge of your specific risk.
Follow this advice and you’re on your way to securing the best life insurance rates available.