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Being A Life Insurance Agent – Despite all my attempts to educate the people I met, so that they could make the best decision for themselves, and only provide the amount and types of insurance they needed, it was difficult to convince some of them that I had no money. try to take advantage of them.
There’s a good reason for that lack of trust: most life insurance sales agents are paid only on commission. So it is not unusual for some to try to convince consumers to buy expensive products that they do not need. Also, some agents only work with one company, which makes it difficult to compare policies and prices.
Being A Life Insurance Agent
If you are looking for a life insurance agent, you can take these steps to find someone you can trust. We will also discuss whether you even need an agent to help you with your insurance needs.
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You don’t need to work with a life insurance agent. But in other cases, it can help you learn more about the policy you’re buying and help you compare multiple options. To help you find a good agent, here are six questions to ask.
An independent life insurance agent works with several different life insurance companies, allowing you to find the right policy that fits your needs and budget.
In contrast, captive agents only work with one insurance provider, which means if you want a policy, you’ll have to do your own research to determine if the product the agent is selling is the best available for you.
I was a captive agent when I sold insurance, and we gave money to an independent agent only when someone’s health profile made them ineligible for one of my employer’s policies.
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In general, you will want an insurance agent who will not only help you shop but also has the necessary relationships to give you many options from different insurance companies.
There are many philosophies for determining how much life insurance you need. Some financial experts and life insurance agents recommend taking a percentage of your income — say, 10 or 12 years — and buying that amount of annuity.
For example, if you earn $50,000 a year, you can buy between $500,000 and $600,000 in premiums.
The problem with this method is that it is arbitrary. Every situation is different, and it’s important that you do your best to make sure your loved ones are taken care of if something happens to you.
Life Insurance Agent
One thing I liked about the insurance agency I worked for was that the agents always started with an extensive fact-finding process. We talked to potential clients about their current financial situation, as well as their future goals. We also talked about their views on insurance and how they approach the decision.
Finally, we would go through a needs-based approach to determine exactly how much money their loved ones might need if they die. We cover immediate expenses such as funeral expenses and medical bills. Then we would talk about debt, income replacement, education and retirement savings, and more.
Again, every situation is different, and working with an insurance agent who will go through this process with you will give you the most accurate picture of how much life insurance you need.
Most, though not all, life insurance sales agents are paid commission only. This arrangement may provide an incentive for others to sell you more insurance than you need or to sell you a type of insurance that you do not need.
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Always ask in advance how a life insurance agent is paid. If it’s commission only, that doesn’t mean they’ll try to pull a fast one on you. But that may be more likely to happen compared to a situation where an agent is paid a salary.
If the agent refuses to provide details about their compensation, or you don’t feel comfortable with their answer, it may not be right.
There are various types of life insurance products available. But some are more expensive than others, providing a financial incentive for other agents to push them even if they’re not in your favor.
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For example, the insurance company I worked for prioritized whole life insurance, even though most people would benefit more from term life insurance. I didn’t feel comfortable with that, so I sold two life policies just two years apart.
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The downside is that, even though I sold a lot of policies, I didn’t make enough money for the gig to be sustainable after I graduated from college.
Again, in most cases, term life insurance is the best option. If the agent makes you wonder,
, have gone too far because life insurance should not be considered an investment at all. If they’re trying to push whole life, some type of universal life, or even some type of permanent hybrid, don’t be afraid to ask why and try to steer the conversation toward cheaper options.
Life insurance agents in the United States are required to be licensed in the states in which they sell policies, and each state has different licensing requirements. When I sold insurance, I was licensed in Utah because that’s where most of my business was. But in some cases, I applied for insurance licenses in other states because I had enough potential customers to do so.
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When interviewing different agents, ask for their license number and check with your state’s insurance department. If there is no match, you may be dealing with one of the many different life insurance scams out there.
Another reason that some life insurance agents are ineffective is that they do not know enough about the products they are selling. Yes, every agent must pass an exam to get a license, and I learned a lot from studying for that exam.
But I’ve learned a lot about life insurance since I stopped selling it that I didn’t know before.
While it’s difficult to gauge an agent’s knowledge of a subject you may not be familiar with, an easy way is to look at the names – those abbreviations after their name on their business card.
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There are many different titles associated with insurance, but the most important for life insurance is the Chartered Life Underwriter, or CLU. Agents must study and pass an additional exam to achieve this designation, and those who have it will understand more about life insurance products than agents who don’t.
You may also consider working with an agent who is a Certified Financial Planner, or CFP. Although this is not an insurance-specific designation, CFPs must meet higher standards than other brokers and financial advisors when providing advice.
As you go through the questions to help you find the right agent, you may be wondering if you need an agent at all. In short, the answer is no. There is no need to work with an insurance agent to buy life insurance.
Working with an agent can be beneficial for someone who prefers face-to-face interaction, and it can also help if you have a lot of questions and want someone to educate you about how life insurance works and your options.
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Finally, if your situation is unique, you will find the right solution more easily by working with an independent life insurance agent versus a website.
But if your situation is straightforward and you don’t mind learning about life insurance, it may make more sense to buy from an online broker.
For example, companies like Bestow and Ladder can offer short-term life insurance quotes at affordable rates. They will walk you through the quoting process step by step and also provide resources, so you can learn about different life insurance products if you want.
Whether you work with an agency is up to you. Take the time to consider your situation, needs, and preferences to decide which option is best for you.
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Buying life insurance can be a frustrating experience, especially if you’re dealing with a life insurance agent who doesn’t have your best interests at heart. While interviewing life insurance agents can be time-consuming, it can save you money in the long run and ensure you get the right policy for you.
If you just want to buy a policy and be done with it, however, some of the best life insurance companies are online providers, which can help you find what you need without the hassle of checking out individual agents.
By submitting this form you agree to receive emails from and to the privacy policy and terms. The life insurance industry in India has come a long way, especially in the last two decades when Life Insurance companies were given the green signal to operate. Surprisingly though, awareness about the need for Life Insurance is still very low in the country. People have a general understanding that there is a need to save for the family and for their future, but very little knowledge about how to do it.
For decades now, Life Insurance Agents have been selling insurance in the country. It has long been the largest distribution channel for life Insurance companies. Agents represent the companies whose products they represent
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