So you have heard you need to have life insurance, you know it is a good idea, but how do you get it? How do you know you are getting the right policy? Or the right amount? Or even better yet how do you get the best deal? Do I really need a life insurance broker?
Oh I know what to do...
- You have a cousin that you see on holidays that just got in the business, maybe you will call them?
- You had a neighbor that used to work for an old mutual life company years ago, Surely they can help?
- There are always commercials on TV for Life Insurance, maybe you should just wait till you can jot the number down and call them?
- You are constantly getting stuff in the mail that looks like it is from your bank or credit union, that free policy they are offering must be good?
- I will call my home or auto guy, always looking for ways to bundle?
- Maybe I will just call the company directly! They will definitely give me the best deal,right?
Wrong! Sounds Crazy, Right?
These are just a few of the ways that people are getting life insurance everyday. Together we will look at many of the pitfalls people face when trying to get life insurance, and discus some tips from the pros to get the best rates for your unique situation.
On second thought...
Family new to the biz
Mix business with Family??
Haven't things changed a lot?
National call center with sales quotas?
Offers in the Mail
Home & Auto Guy
How did I get on this list? I don' know them!
What if I change my home or auto insurance later?
Have you called a Fortune 500 company lately?
What if I told you that there is not only a better way, but that it will save you time, stress and money!!!
Lets explore how to avoid these blunders, use an experienced, knowledgeable life insurance broker.
We have all been there, some one in the family just got recruited by a life insurance guy!
Hey, uncle Billy I was wondering if you and aunt Barbara will let me come out and practice my sales pitch for my new gig at xyz insurance corp...? I am studying for my exam and Mr. Life Insurance says I need to meet with 12 people per week. Can you help me out? It should only take a few hours...
Future Insurance Agent
Of course the family member wants to share all this new info with the people they care for most. And I am not knocking them for that at all. In fact many life insurance brokers get into the business the same way.
But lets consider for a moment where this could go wrong?
- You don't know Mr. Life Insurance. What are his credentials? Can you trust him?
- Did you know? 95% of new life insurance agents are out of the business in 5 years or less...
- Chances are that Mr. Life Insurance is more focused on recruiting than on helping people with life insurance. Or many times Mr. Life Insurance has only been in the business a few months himself!
- Many of these operations are known as captive, meaning they can only represent 1 life insurance company. So lets hope that they have the best rate, oh and that they will be accepting of your minor medical condition.
- Don't be surprised if Mr. Life Insurance tries to recruit you to sell life insurance too. Oh yeah, you can do it part time and he will teach you!
- Let's pretend for a moment that those all work out... Have you ever done business with family? No Thank you!!!
So, how can a life insurance broker help?
- Independence! Many brokers are independent agents, they don't work for any particular insurance company. They are free to use whom ever is the best fit for their clients. More on this later!
- Brokers are focused on providing solutions for their clients. We don't need a large team of recruits as part of our contract with the insurance carriers.
- Chances are that a broker has dealt with your specific health concern before. It probably isn't as uncommon as you may have thought. Experienced life insurance brokers know which companies are most likely to approve difficult medical histories so you don't waste your time getting denied by Mr Life Insurance's only option.
- Or in the event Mr. Life Insurance can get you approved he can't shop around for the absolute best rate on your behalf, he is after all stuck selling xyz corp or nothing... He doesn't want to lose the sale, and hey you will never know there were 15 other choices that were half the cost. And if you ever find out he will just blame it on your family member for sucking you in.
- Experience!!! Do you really want to leave something as important as your families future to someone that is PART TIME???
But what about that neighbor? Mr. Wilson?
He did after all work for the largest, oldest mutual insurance companies there is. Certainly he will have plenty of insight. He is a great guy and neighbor, and he did really well for himself. That company must pay pretty good! He even has a pension for life. I wish I had a pension to look forward to.
Now no one is going to argue that those old mutual companies are some of the strongest most stable of any company in any industry. Some of them hold the highest posible rating with the ratings agencies for financial health.
But let me tell you, they are proud of those ratings! They brag about them incessantly.
And they are among the highest priced companies that you can find as a result. I have seen rates that were 3x and 4x the cost of some competitors.
I truly believe that the strength and financial stability of your life insurance company should be a big factor in your decision making, that is why we represent many of the nations top carriers, at affordable prices with out sacrificing quality of coverage.
Those guys are stingy too! Remember that health condition you are worried about? Well a lot of these old mutual companies are strict on what they will approve. That doesn't always mean they won't give you a policy, just that sometimes they do it at an increased premium. Did I mention they started higher to begin with too? So how much is it worth to you to have the top rated company now? Many A+ excellent companies have very fair underwriting and good rates.
Lastly many of the old mutual companies are set in there ways. They are among the slowest to adopt new time and money saving technology. Many of them still require ink signatures and face to face appointments with one of their "captive" agents. Remember that means the agent works for them and can not shop around on your behalf.
We shop all the top carriers and let you decide what option is best for you. Then we make the whole process as quick and simple as possible. Many times we can get an e-signature and even skip the exam process. Getting you covered with less hassle, in less time. With out having to work out a meeting time and have a stranger come into your home.
What do cute puppies have to do with life insurance, and how does having one help you qualify for the crazy good rates that they imply you "may" get?
I can hear my 7 & 8 year old daughters now..."Awwwwwww, so cute!!!"
"Do you think we are cute enough to get the teaser rates?"
It seems like every single time I sit down to watch a big game or hit show and there are literally dozens of commercials for some type of life insurance.
- Final Expense, for burial or medical bills left behind.
- Term Life, to cover Phil and his family for just $9.99 for a huge policy, if he has a cute enough puppy?
- Guaranteed acceptance with a celebrity spokesman, celebrities don't buy $5000 burial policies do they?
- Even some of those old mutual companies, yep bragging about how old and rich they are.
They are hoping to get you reeled in and that you won't take the time to do your homework.
A good life insurance broker will do the homework for you!
To get to the bottom of what is best for you, the client, a good life insurance broker will have to take some time to get to know you. This is easily done by asking you some very important questions.
- We need to know about your goals for the policy, what made you decide you need it in the first place?
- How long do you need this coverage?
- We can help you calculate the appropriate amount of insurance.
- Do you have any conditions that would prevent you from getting insurance?
- Even your family history can impact the rates available to you.
- Are you scared of needles and refuse (or just don't want) to do an blood and urine exam?
- What medications are you currently taking?
- Your height and weight.
- What are your hobbies? Scuba diver? Pilot? Race car driving? Yep it can make a difference.
- Are you a tobacco user?
We are NOT a national call center. We are independent agents that help find real solutions not just sell you the quickest thing possible to move onto the next customer. We will assess your situation and make professional recommendations to fit your personal needs.
There are several companies that will give non tobacco prices to clients that chew or smoke cigars!!! That tip alone can save thousands! We know all the rules for the carriers that allow it, so we can evaluate which one is best for you! No more finding out the hard way. Call now to find out if you can save thousands as a tobacco user?
Based on 40 year old male $300,000.00 policy.
20 Year Policy
30 Year Policy
20 year savings $20,100
30 year savings $51,750
Business Reply Cards, people still do this by mail?
Have a bank account? Recently buy/refinance a home? New credit card?
Yeah some of these companies will approach you for life insurance for just about anything.
Do you really want to fill out a paper card with your personal info on it then drop it in the mail to go who knows where? Who knows how long it will take to get there? Is it secure?
Weeks later you will start to get the calls, you will have forgotten all about the card. You may even have forgotten all about wanting life insurance all together.
We use cutting edge technology to get the quotes to you instantly right on the internet. You don't even have to wait for a call back. Once you settle in on the plan that is right for you we help you apply and start the approval process immediately. We have plans that can have you covered before the reply card can even be received. Many policies can even be e-delivered cutting the mail out completely.
Not to mention that a large number of these cases are actually not being mailed directly to a life insurance broker. Did you know that there are leads that agents can purchase? Those leads are often times sold to as many as 8-10 agents! So you will be getting bombarded with calls from all of them. They even re-sell the leads later and call them aged leads for a discount to the agent! So even months after you have forgotten you filled that thing out you will still get random calls as those leads are purchased by new agents. And the worst part is there really isn't a do not call list because you opted in for the info in the beginning, who is going to remember where they mailed that card to track them down to stop selling their information?
So the home and auto guy sells life insurance too, what is so wrong with that?
Let me say that I am close friends with several home and auto agents and they are great guys. I am not attacking anyone personally, nor do think that they intentionally do anything to harm the customers that they serve.
I blame the insurance carriers, not the agents that represent them. The system is rigged against them.
Most, not all property and casualty agencies only sell life insurance that is offered by the home and auto companies that they represent. This severely limits the options that they can offer. This puts them in a situation similar to the captive agent discussion we had previously.
These agents are at the mercy of the carriers they offer. Many have a minimum amount of life insurance that is required to be able to be an agent with them. If you offer even a couple of companies that minimum adds up very quickly! Most of them just hope to get close every year.
Then you have actual captive home and auto agents. These are going to be most of the carriers you see on T.V. They will have the company name plastered everywhere,not agency name. Everything will be branded to that 1 company. These agents are captive not only for life insurance but for the home and auto insurance as well!
As a captive agent they will not be able to shop around for better rates. Many times when rates increase (they always do, often for good reason) these agents will lose customers that decide to shop for themselves.
But I get a discount on my auto insurance if I bundle, the more I combine the more I save!
That is often true. I don't have any issue with savings, isn't that why we are here? The problem generally comes when those rates go up on the other insurance. Most states don't allow for discounts on the life insurance, it is actually illegal. So what happens to that discount if you shop around?
Yep, you guessed it your bundle just burst! No more discount. Had you used a life insurance broker you would have the best life rates already. Many times the best life rates will be a better savings than the discount offered on the bundle anyway.
As a life insurance broker I made a decision to specialize in life insurance. Many other agents make the same choice for their own specialty. Because of that we are able to offer better service and expertise for their insurance needs. Would you go to a foot doctor if you were having heart problems? Sounds like a silly question but think about it, is it much different?
Not only do I have several agents as friends, many of them actually send their life insurance clients to us to secure the best possible rates.
Ways buying direct can cost you dearly
So why not just cut out all the middle man mumbo jumbo? I mean life insurance brokers get paid a commission right? I has to save the company a lot of money if I just buy from them right?
Absolutely, it will save them money!!! They will love you for it!!!
And in return you will pay the same or higher rate as someone that went through a competent, experienced life insurance broker.
How can that be? Let me tell you.
Insurance rates must be approved by each state. Once they are approved and filed they have to apply them evenly to everyone. So the company can not take any of the cost away simply because they did not have to pay a life insurance broker. They simply pocket the money saved and thank you for your business.
That doesn't sound as bad a I thought.
Well maybe not, but a life insurance broker would have reviewed the big picture. How did you decide on that company to call and give your hard earned money to? Internet reviews? Name recognition? Someone referred you?
Remember we know all the rules for each of these companies we work with. A case that company A gives preferred rates does not always mean company B will give the same. Each company has their own in house underwriting rules and we follow them very closely. Life insurance brokers see trends and use them to your advantage.
Remember we have know all the rules for all the companies we work with.
What if a life insurance broker had shopped around for you? What if that name brand carrier was already on the high side? What if I could have gotten you a preferred rate somewhere else? The savings from preferred and standard can be significant! Thousands of dollars!
As life insurance brokers we build a relationship with many companies just the way that we do with our clients. Often times we can get a good idea of the rate you will qualify for ahead of even applying.
For example the difference between standard and preferred plus for our 40 year old male $300,000 from earlier is astounding. One of the highest standard rates comes in at $1724/year. But the best rate with another insurer comes in at only $398!!! That is a savings of $1325/year. For a 30 year policy that would have cost an extra $39,780!!!
What could you do with an extra $40k when you turn 70?
Now I am a firm believer that price is not everything. I feel that in many areas of life you get what you pay for. So there are times where you may not want to just jump to the cheapest rate either. What if a company is notoriously slow to pay claims? You wouldn't know that, we do!
A life insurance broker can make a huge impact on the both the cost and quality of your protection. You are buying piece of mind and we can make sure you get what you pay for.
You are looking for life insurance, a life insurance broker can guide you through the process from beginning to end.
There are a lot of hoops to jump through to find the right life insurance policy for your needs. It's not easy, but it doesn't have to be difficult either. Save yourself countless hours, unnecessary stress and a lot of money. Let us do the hard work for you. In just a few short minutes you can be on your way!
I have decided to work with a life insurance broker for my unique needs, what do I do next?
Have questions? Just give us a call 888-299-TERM (8376)