Insurance Broker or Salesperson: Who to Use to Buy Life Insurance?

Life insurance quotes will vary from company to company. Small companies may offer better rates than the more well-known large lifeinsurance companies. It pays to shop around. You can compare life insurance rates online, or use an insurance broker. A broker or salesperson can also help you choose which policy best suits your needs, once you've found the right insurance company for you. You can also buy your life insurance directly from the company, but a trusted broker can help with advice and suggestions.

 

Life insurance companies are not federally insured, so it is important that you choose a company in good financial health. You can check your insurance company's financial stability online with one of several rating organizations.

A broker sells insurance policies for multiple insurance companies. A salesperson sells policies for only one insurance company. Either one can help you find policies that are right for your needs. The most important thing is finding a broker or salesperson that you can trust.

 

Watch out for high-pressure sales techniques. A broker should ask about the details of your situation before suggesting a life insurance policy. Salespeople and brokers get much higher commissions for selling permanent life insurance rather than term life insurance. But most people need term life insurance, to replace their salary if they die prematurely. If a broker tries to push a permanent life insurance policy on you when you don't need it, you might want to get a second opinion.

Personal recommendations are the best way to find a trustworthy broker. Ask your friends and family which agent they use. You can also check a broker or salesperson with the local Better Business Bureau and the state licensing board. Finally, use your good judgment. If your broker pressures you to choose a particular type of life insurance, or doesn't seem to be investigating your needs before making a recommendation, try a different broker.