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How to Pick the Right Life Insurance Broker

So…. life insurance.  Nowadays you can easily get life insurance online if need be, but I think that a life insurance broker can help solve a lot of problems if your situation is a bit more complex!

life insurance broker sample file

I know what you’re thinking right now, and yes, I agree – thinking about death is very depressing to think about.  But do you know what’s more depressing?  Thinking about dying and not having any sort of plan for your loved ones after you’re no longer around.

If you’re wondering if you need life insurance, or even wondering how life insurance works, then I recommend that you read this article that I previously wrote that outlines all about life insurance and if you might want to consider getting it.

In summary, life insurance isn’t for you – it’s for anyone that depends on you.  If you die, that’s it – you’re dead.  I know that might sound ruthless, but it’s true.  But if you die and you’re providing income for your family then that income is also gone. 

Your loved ones are still there but now they don’t have your income to assist anymore. 

If you’re in this situation, then life insurance is likely good for you, but like I said – read the article and you can decide for yourself!

But you’re likely here because you decided that you need life insurance and you’re wondering how to go about getting it.  First off – congrats!  It’s much better to have life insurance and not need it than it is to need it and not have.  So now that you’ve decided to get life insurance, where do you start?!

Well, there’s really two places that you can go – either online or in person, similar to just about everything else in this world!  I mean, I think everything is like that nowadays if you really think about it – if you need a new TV, you either know what you want and go to Amazon or you go to someplace like Best Buy to learn about it…and then sometimes still buy one online lol.

If you know exactly what you want then you can go online to a company like Haven Life, Geico or Prudential and get an instant quote online.

If you’re anything like me, I get a little squeamish when buying something this important online so I typically would go through an in-person option.  That’s obviously not to say that buying online won’t work, because it absolutely will, but that’s just how my mind works. 

Online is a great option if you know what you want but make sure to take some time to read various reviews and to look for the best rates for your life insurance before making an impulse decision.

If you’re going to find a life insurance broker option, then you’re likely going to look for things that are very different than you would if you were buying online.  Similar to the article that I wrote about finding a financial advisor, you need to make sure that you ask the questions that are going to focus on the wellbeing of yourself, so let me identify a few key things that you should look for:

Ensure that the broker is in fact licensed

While this seems obvious, you should make sure that the broker is licensed with both the National Association of Insurance and Financial Advisors (NAIFA).  If they’re not, then just walk out of the meeting right then and there because you’re wasting your time.

Find out how the insurance broker is paid

Some brokers are paid on a flat fee and some are paid on commission.  Personally, I prefer a fee-based broker but am fine with a commission broker as well as long as they don’t seem to be pushing a certain product or plan. 

If you can tell that they’re pushing something and aren’t even willing to listen to your concerns, then I think that’s a major red flag that they might not be trustworthy and not having your best interest in mind.

Are they educators?

Is the agent just talking down to you, even if inadvertently, and not explaining anything to you?  If you’re brand new to life insurance, and many of us are when we decide to get it, then you can be easily taken advantage of if your broker isn’t explaining things to you. 

You went to them because you didn’t know what you want, so if they’re not going to be able to adequately educate you on all of your options and assist you to make the best decision for yourself, then why are you there? 

They should be more than happy to help you understand the plans and not be in a rush to get you to make a decision.  You need to be treated like their most important customer and you should demand that respect, because making an uninformed decision doesn’t hurt you – it hurts your family.

How is you Gut Feel?

I know that this one seems vague, but it was meant to be that way.  You’re going to a broker for help with a very, very big decision in your life.  Do you trust them?  Do they seem knowledgeable?  Do you think that they have your best interest in mind or are they pushing a product?  Do they actually even care?  All of these are questions that need answered. 

No, you don’t need to ask these questions, but you should be able to get a really good feeling on the likely answers to them after meeting with your potential brokers.  Like I said, they’re helping you through a very important life decision so take the time to get to know them and their intentions.

Similar to looking at various rates with your online options, don’t hesitate to sit down with multiple life insurance brokers as well.  Take the time to find someone that you feel comfortable with and is truly looking out for you and your family. 

I encourage you to think abut these things before you go into your meeting and try to come up with a good question list for them. 

Doing a little extra prep work, and keeping these tips in mind, will ensure that you’re more prepared than ever to make a fantastic decision!