Shopping for life insurance can feel overwhelming and confusing. Working with someone you trust can help you find the best policy to fit your financial restrictions and unique situation. But how do you know who to trust when it comes to life insurance? And what’s the difference between life insurance agents vs. brokers? How do you know which one will help you find the best policy?
Here’s the best way to determine which life insurance professional will help you select the best life insurance policy to suit your needs.
Quick Article Guide:
- Life Insurance Agents
- Independent Life Insurance Brokers
- Other Ways to Purchase Life Insurance
- The Bottom Line
Life insurance agents work on behalf of one or more insurance companies selling their products. Generally, they can only sell life insurance from their partners. These agents are typically thought of as a traditional life insurance salesperson.
Many consumers find life insurance agents appealing for a few reasons.
- They offer a personal experience for consumers. If you’re in the market for a life insurance policy, you may turn to your friends and family for referrals. You trust their opinion and hope they will point you in the right direction. These referrals give you the feeling of a personal relationship with your life insurance agent.
- They are knowledgeable about the products they sell. Since they work with a limited amount of insurance companies, they are familiar with the products they sell. This doesn’t mean, however, that they are well-versed with all life insurance policies.
Be cautious, because life insurance agents advocate on behalf of the insurance company they work for. Life insurance agents receive compensation on a commission structure for the products they sell. Meaning, they may not have your best interest in mind when referring you to a policy. They may also try to sell you more coverage than you need or a policy that could end up costing you 10 times as much. This, among other things, is something life insurance agents would prefer you not know.
Independent life insurance brokers can help you discover the best policy to meet your financial needs. They are not tied to one insurance company, therefore they can offer policies with the best rates to fit your unique situation. They generally understand the life insurance landscape as a whole and have extensive knowledge of each insurance company’s underwriting process.
Independent life insurance brokers such as JRC Insurance Group, have the experience and expertise you need to find the best policy. Here are some other reasons you may benefit from working with an independent broker.
- They offer unbiased guidance and advice. Independent life insurance brokers work with a large variety of insurance companies. Therefore, they review plenty of insurance applications. They understand what to look for and what each company will accept. This gives them the ability to recommend a specific carrier based on your health, age, and financial situation.
- They can shop your application around. If your application comes back at a higher rate than anticipated, an independent life insurance broker can shop your application around for the best rate.
- They will keep you up to date on the status of their search. The underwriting process can take anywhere from four to eight weeks, maybe more depending on if the underwriter requests additional information. Independent brokers can keep you updated on the status of your application. It gives you peace of mind knowing that you are a part of the process.
Independent life insurance agents may seem like the best bet, however, not all brokers are the same. Before partnering with an independent broker, be sure they have the experience and knowledge suitable for your situation. Don’t just select the first broker you discover and assume they can help you find the best policy.
- Financial advisers or planners: Financial professionals are sometimes registered to sell life insurance, but it’s rare that they have the expertise you need to find the right policy. They may also receive a commission for selling you a life insurance plan. Your financial adviser may understand your financial situation, but they may not be the expert you need.
- Directly through the insurance company: You may think it’s wise to cut out the middle man and go directly to the carrier to purchase your policy. But this can limit your options. Even if you think you have found the best policy for your needs, you may be missing some important information that could help you find better rates.
- Through your employer: Your employer often offers life insurance as a part of their benefits package. However, it may not be enough coverage to take care of all of your financial needs. Make sure to review your employer’s policy and determine if you need more coverage.
- Through a credit union: If you bank with a credit union, they may send you life insurance offers from time to time. Initially, they may seem appealing, but this is another case where you’re limiting your options by not shopping around.
- Through another association: Other associations may try to sell you policies as well. This also limit your ability to find the best rates.
Every consumer has a different financial situation, condition, and medical history. Working with an independent life insurance broker can help you evaluate all of your options and discover the best policy for your needs.
Selecting the right insurance policy can be challenging. You want someone who is on your side and can help you weigh out all the pros and cons of a plan before you make your final decision.
If you’re in the midst of selecting life insurance coverage, it may be wise to partner with a life insurance expert, like JRC Insurance Group.
At JRC Insurance Group, our agents are experts with over 50 years of experience. We are appointed by dozens of top-rated life insurance companies and our agents are not pushy salespeople. Our agents do not have quotas; we’re here to help. We have helped hundreds of clients, and we can help you too. Our passion is finding our clients affordable life insurance coverage to protect their families.
Give us a call today, we would love to help! Toll free: 855-247-9555, or request a free quote here.