Choosing a Life Insurance Agent

Four Things to Consider When Choosing a Life Insurance Agent

by Richard Barrington

Life insurance is one of those responsibilities that comes with starting a family. It is a relatively simple way to protect your family financially should something happen to you. The point person for helping you fulfill this responsibility is your life insurance agent, and considering how important it is to protect your family, some care and thought should go into choosing a life insurance agent.

Life insurance agents are easy to find; it's choosing one that takes some careful analysis. Agents are often prominent in local communities; some advertise and there is a good chance that at some point you will know someone in the life insurance business. In addition, the Internet offers access to information and free quotes for life insurance policies. There is no shortage of agents to choose from.

So how do you determine which agent is right for you? It depends a little bit on whether your priority is to obtain a cheap life insurance policy or to work with someone you can consider a personal advisor. Assuming you can weigh the trade-offs between discount insurance and personal service once you have all the relevant information, here are four factors you should consider when evaluating agents.

  1. Commitment to the business. The life insurance business attracts many people right out of college and most do not succeed in making it a long-term career. Look for someone who has proven his or her commitment to the business, based on time in the industry, tenure with current firm, and size of the practice.
  2. Knowledge of Life Insurance. You don't have to know a lot about life insurance to evaluate this. Start by asking questions, and see how thoroughly and confidently different people answer those questions. You'll soon get a feel for how deep different agents' knowledge runs.
  3. Responsiveness. Many places will give you a free quote on a policy, but evaluate also how promptly they follow through on your requests and questions. Consider this a dress rehearsal for how they would respond should your family need to act on the policy.
  4. Service vs. Cost. The reality is that discount insurance providers are only a few clicks away on the Internet, but there is more to the decision than simply finding a cheap life insurance policy. Get quotes from full-service agents as well as for discount insurance, so you can determine the cost of service and come to your own conclusions as to whether that cost is justified.

Source
New York State Insurance Department--Life Insurance Resource Center



About the Author
Richard Barrington is a freelance writer and novelist who previously spent over twenty years as an investment industry executive.