What Life Insurance Agents Do
A Life Insurance agent's goal is to help you find a policy that best meets your needs and situation in terms of your family obligations, finances, health, and personal circumstances. The agent you work with should be able to present you with a number of insurance options that meet your criteria, and should be able to clearly and simply explain the details, advantages, and drawbacks of each option. If you have questions, the agent should offer honest, understandable answers. At no point should you feel pressured into making a purchase; the agent should work with you until you can find an insurance arrangement you're comfortable with. Once you've purchased a policy, the agent should be available to review the details of the policy, including beneficiary designations, every few years.
How Life Insurance Agents Operate
Life Insurance agents usually either work for one company directly or they work independently, and can help you buy insurance from a number of different companies. If an insuring agent works for one company, he or she will only be able to sell you insurance from that particular company. If an agent represents multiple companies, he or she can sell you insurance from any of those companies.
In order to determine the best insurance for you and get you the best rates, insurance agents will often ask clients to fill out a questionnaire or answer a series of personal and financial questions. These questions usually address personal and family medical history, lifestyle, employment, and financial details. (At some point, you may also be required to receive a general medical examination by a doctor employed by the Life Insurance company. This medical exam will be used by the insurance company to determine your health, which in turn factors into the insurance premiums you'll pay.)
How To Find A Life Insurance Agent
If you already know the company you would like to purchase life from, you can contact that company and request to meet with an agent. If you don't know where you'd like to purchase your insurance from, one of the best ways to find a quality Life Insurance agent is through referrals.
Talk to friends, family members, and colleagues to learn if anyone has had a particularly good experience with an agent. While people may be reluctant to talk with you about the type or amount of Life Insurance they've purchased, you don't need to know the details of their purchase in order to learn about their experience.
Professional advisors, such as attorneys, accountants, and financial planners, may also be able to refer you to an agent they work with and trust. Since your professional advisors already have a sense of your situation, they may be able to recommend an agent who specializes in working with people in similar situations.
How To Judge A Life Insurance Agent
- Is the agent properly licensed? Insurance agents should be licensed by the state in which they sell insurance, and licenses should be current (not expired). You can ask the agent you're considering if he or she is licensed, or you may be able to find out from your state's insurance department.
- Does the agent have the proper experience? In order to find the right policy for you, it's a good idea to work with an insurance agent who has experience working with people in your situation. Ask the agent if he or she has experience working with people in similar financial, family, and personal situations as yourself. In some cases, the agent may be able to provide you with client references you can contact.
- Does the agent have appropriate education, training, and professional credentials? Many insurance agents complete additional training and courses to obtain advance credentials. These credentials may include Chartered Life Underwriter (CLU), Chartered Financial Consultant (ChFC), Certified Financial Planner (CFP), and Financial Services Specialist (FSS), among others. These advance credentials often signal a commitment to the profession and ethical business practices.
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