The need to know regarding insurance agents
The process of deciding on life insurance is quite an important and, possibly, scary one.
Calculating the amount of life insurance you need and knowing what sort of policies are out there that can suit your situation is a lot of information to handle on your own.
But, you don’t have to be alone.
Make use of an insurance broker or agent. This is their turf, so let them show you around.
Their function
The function of an insurance agent is to be clued up on the ways of the insurance world and help you out as a potential insurer to make sure you get the best deal and the correct policy for your needs. It’s their duty to make sure you are completely aware of the nitty gritty when it comes to your policies and that you understand why your premiums cost what they do and why that is the best deal you’re going to get.
The different types
There are two types of qualified insurance sellers; brokers and agents. Classified only by their independence or captivity. Let’s explore that.
Independent agents and insurance brokers work independently. This means that they can work for multiple insurance companies and typically earn commission off bringing clients to the insurance companies. And that means that you won’t necessarily pay for having an independent agent. They become your representation to the insurance company and can shop around for you with regards to the best policies and premiums options for you. Basically, you let them do all the hard work and you just monitor and sign when you’re happy with the offer. Some insurance companies inform you which type of agents are available, like African Unity Life who make use of a select group of specialised brokers to ensure you know that you’re getting the best offer.
The other type of agent is a captive agent. Not held against their will to never leave their insurance company’s building but, rather, that they choose to work specifically for one insurance company. Captive insurance agents may not have the same exposure to a variety of premium and policy deals, but they are experts on the company and products they represent.
But the best idea would be to make use of both agents. Find out what is out there and then if a captive agent is available at the insurance company you choose, meet with them as well so that you know everything there is to know about your insurance coverage.
Why you should use one
Face it, you aren’t an insurance policy, premium, coverage or underwriting expert, are you? You need an insurance agent to stay updated about general insurance and your specific insurance company. They can inform you of any information that may affect you positively or negatively and they will be able to come up with a solution way before you can even begin to start stressing about it. They will be able to provide valuable quotes from different companies, if they are independent agents that is, which will save you the time and hassle of doing it yourself.
Using an insurance agent will give you peace of mind regarding your insurance policies, but you need to be sure to trust and like the agent you work with. Make sure you are comfortable with their intentions and manner of working.
What you should ask
When it comes to using an insurance agent there are a few things you should ask them in order to be sure that you, firstly, want to work with them and, secondly, are comfortable with them handling your life (insurance).
A few questions you can ask them – and don’t feel shy or invasive about asking them – include querying their qualifications and experience. Not in a demeaning or undermining authority but the authority of a client rightly concerned about their insurance matters and the hands in which they are placing those matters.
You can also ask for current client references to get a feel for their attitude towards their clients as well as actually hearing what their clients have to say regarding their work. Another great idea is to ask all your “what if…” questions. Not only will you be testing their honesty and policy knowledge, but you will also find out exactly what your coverage includes and where you need to look elsewhere for relief.
Now that you’re on a need to know basis, do you need an insurance agent?