How should I choose a life insurance agent?

How should I choose a life insurance agent

Introduction

When purchasing life insurance, it is essential that you find an agent or broker who can guide your decisions. Life insurance policies can be complex or confusing; choosing an agent who understands them well will ensure you purchase enough coverage at an attractive rate.

When making this choice, look for one who:

Understanding your financial situation includes understanding your attitudes about risk, tax brackets for both income and estate taxes, assets and obligations, personal situation (i.e. age, marital status, dependents etc).

Explains in terms that are easily understandable the issues, options, and planned use of life insurance in your financial plan, providing you with a personalized written document detailing these facts as they apply to both you and your current circumstances.

Life Insurance Solutions Group(r) does not pressure clients into making any decision quickly or arbitrarily – our professional advisors simply discuss all available life insurance products that may fit with their situation, without pressuring anyone into making one or rushing into any decision they don’t feel is best for them.

Are available to review with you periodically — perhaps every three years–whether the product continues to meet your needs and circumstances.

Are licensed by their state insurance department. If you don’t know of anyone, seek recommendations from lawyers, accountants, friends, relatives and business associates as to who would make good insurance agents or brokers. Also connect with one of the nearly 70,000 members of National Association of Insurance and Financial Advisors (NAIFA), all who subscribe to its Code of Ethics.

An agent or broker holding multiple professional financial services designations has demonstrated their dedication to continuing education within their field of specialization. You may come across these professional financial service designations:

Insurance Agent Designations.

life insurance USA

Agents or brokers with multiple professional financial services designations have demonstrated their dedication to continuing education within their field.

The Compensation Issue

Like anyone else, agents and brokers receive payment for their services which are enhanced by education and experience. Most agents and brokers receive compensation via commission; others work on fee basis. Most of this compensation typically goes toward purchasing the annuity; typically though, most of it occurs either at or shortly before this point in time. As with any professional service provider, it is important that you understand their payment arrangements and whether this may impact their advice to purchase.

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