Life Insurance Blog

From big name firms to small, lesser-known agencies, life insurance brokerage firms come in many shapes and sizes, each of which can meet a very broad base of individual consumer needs. No matter how big or small a brokerage firm happens to be, however, it pays for potential buyers of life insurance to do their homework regarding how a specific firm runs their business. Below is a list of what to look for in a brokerage firm.

• Types of services. Different types of insurances can often be bundled together in a package which will save the buyer money in the long run. Inquiring of the insurance broker what other services their firm offers is one way a buyer can guarantee that they know the ins and outs of a given insurance agency as well as ensuring that they receive all the products and services that they need. Buyers may need more types of insurance than just life insurance, but if they ask enough questions about each service offered by a single firm, they may soon learn that they can receive a significantly less expensive life insurance policy from one agency while purchasing other types of insurance elsewhere. In this way, buyers educate themselves enough to give them the freedom to pick and choose the best deals without any undue pressure to settle.
• Office personnel. There are several questions that potential buyers should ask of a given brokerage firm relating to their office staff. Perhaps no other inquiry related to personnel is more important than knowing the availability of the brokers. Will they be available often enough to take the buyer’s calls if they have a question or an emergency? In the event that they are out of the office, for whom should the buyer ask to handle their questions and concerns? Another good preventative measure is asking the brokerage firm if the call centre staff is qualified to answer questions about policies and coverage. One important item about which many people fail to inquire is that of personnel turnover. If brokers and support staff are constantly leaving the company and being replaced, it may be an indication that the firm does not have a solid base of operations which can be a harbinger of unpleasant things to come with clients. It is possible for employee discontent to stem from inter-office management without affecting the clientele, but more often than not it belies dysfunction and should be avoided.
• Number of clients. Successful insurance companies which employ successful insurance brokers will have a lengthy catalogue of clients whose trust and business has been earned over the years. To this end, potential life insurance buyers should query brokerage firms about the number of clients that they are currently serving. If the list is small for an office of their size or considerably under average for the industry, the buyer might be better off searching for another brokerage firm. Likewise, if a business has an ever-growing list of clients but manages a smaller-than-average operation, it may be a sign that the brokerage firm is overworked and understaffed. While having too much business is often a good problem to have for any company, it can result in less attention given to each individual customer by the firm’s group of brokers. So while size and success are nice and go a long way towards increasing the odds that a buyer will be happy with their services, there is too much of a good thing and this can spell frustration down the road.