Should I shop around for life insurance before meeting an insurance agent?
[social_share]Insurance agents can be helpful when looking for a life insurance policy, but the applicant should be aware that an insurance agent is not like an insurance broker. The latter is essentially independent – but the former is in fact tied to the life insurance provider.
An insurance agent can be a useful source for advice regarding insurance needs, or which of the provider’s policies is best suited for a particular situation. However, they are not the most suitable starting point for an applicant just beginning the process of searching for a life insurance provider.
It usually pays a life insurance applicant to consider a number of insurance providers at the early stage, rather than deciding on one particular provider early on. This ensures a wider choice, and the applicant is more likely to find the policy best suited for his or her situation. The very act of locking into a life insurance agent or salesman at an early stage will limit the choice of policies.
The best approach for most applicants is to examine a number of life insurance policies before talking to an agent. If the person is a reasonably standard life insurance risk, this will mean searching the internet, both for the cheapest insurance available and also for the reputation of the various life insurance companies. This provides a wide choice of insurance providers, each of which may have its own specialty and customer service standard. It’s also a good idea to talk to two or three different agents before making a choice.
If the applicant is not a standard life insurance risk – for example, with a history of chronic or severe illness – then the best method is to consult a life insurance broker. These people have a good knowledge of the overall market and will be able to consider products from a number of insurance providers. Brokers are also able to speak with customers individually and are usually best placed to deal with any agents who have already been employed.
When speaking with an agent, there are a number of questions that should be asked. This includes whether any special offers are available, what the payout is, what the exceptions to the policy mean, and whether there are other financial products that can be bought at the same time for some sort of bulk discount.
