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Are Life Insurance Brokers Worth The Money?

Life insurance brokers help their clients find appropriate policies that balance good coverage with affordable rates.

They serve an important role, but as the Internet has made it easier for buyers to get life insurance quotes quickly, many buyers have avoided brokers’ services in favor of setting up their own life insurance. Read also: How to Find Instant Life Insurance Quotes?

life insurance brokers

If you’re considering a life insurance agent, here’s what you need to know.

What Does An Insurance Agent Do?

Insurance agents receive a set commission for each policy that they help sell. In exchange, they provide buyers with a number of services. For instance:

  • Brokers can explain the key differences between different insurance products including term, universal and whole life insurance. If you haven’t decided on a specific product, they can help you find a plan designed to meet your goals.

  • Many brokers can compare quotes from several insurance companies, although some brokers only work for a single insurance provider. When you compare rates, you avoid overpaying for your coverage.

  • Brokers can explain contract terms, eliminating potential misunderstandings that could keep your beneficiaries from receiving a payout. You will also have a better understanding of your premiums, so you’ll be better prepared to anticipate changes in your insurance costs as you get older. Read also: Your Guide to Understanding the Life Insurance Underwriting Process.

Evaluating Life Insurance Companies To Choose An Appropriate Broker

When deciding whether or not to use life insurance brokers, you should consider the advantages of independent brokerage agencies over single-company agents. A single-company agent might not provide you with the best possible sense of perspective. In contrast, an independent agent can help you consider different life insurance companies to find a provider with a good A.M. Best financial rating, which indicates that the provider has solid financial background, and affordable premiums for your selected policy type.

Independent agents offer easily accessible tools to compare rates. They’ll look online and compare rates for your selected policy type, then review some of the policies with you. Because life insurance agents draw a commission, you should compare insurance rates on your own when working with a professional brokerage firm. This approach allows you to see whether your agent is providing a valuable service or whether you could handle buying a policy on your own.

Is Life Insurance For You?

About six million U.S. households have no life insurance whatsoever, and over the past two decades, the industry has seen a gradual reduction in the number of new policies created annually. However, the costs of an untimely death continue to rise. Most households absolutely need life insurance order to pay for funeral expenses and as a source of replacement income. Read also: Top 8 Myths About Life Insurance – Busted!

A life insurance broker can certainly help you look for a policy, but because life insurance is such a significant purchase, you should also do some research on your own. Carefully evaluate your options to choose an appropriate policy type and coverage limits.

Consider options like double indemnity, which pays twice the value of your policy if the insured dies as a result of an accident under certain circumstances. By learning about life insurance, you’ll improve your chances of creating an appropriate policy that protects your household from a variety of unexpected events, giving you exceptional peace of mind at an affordable cost.


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