There are many questions when it comes to insurance. From ACA, to Whole vs Term life, agent vs company IUL’s vs 401k’s and the list goes on. Many of these I have already addressed so here I would like to discuss the advantages of having your own agent or broker.
Many seem to think that by going through a broker or agent, they are now subject to extra fees, or predominantly “his commission” I’m not sure where this idea came from, but it couldn’t be farther from the truth. Fact is insurance will cost the same whether you purchase it on line, over the phone, at the company or sit down with an agent. His commissions are paid by the carrier not the customer and are not reflected in the rates. Brokers and many agents tend to be contracted with several different carriers. This affords them to flexibility to build you an insurance or retirement plan that best fits your needs and your budget.
When someone walks into an insurance office, they are now limited to that company’s own products. This could very easily cause you to fall victim to high pressure sales, forcing you to purchase something that may not be in your best interest. This is not always the case. I have known some great agents out there who are very honest and who may simply say “I’m sorry, I can’t help you”. But the other side of that coin isn’t so pleasant. I’ve seen several policies that were overpriced, undervalued and made no sense for that client.
Another thing we fail to consider at the time of purchase is. Who do I call if I have a question, a billing issue or a problem? This matter obviously isn’t limited to just insurance. How often have we called an 800 number only to get passed from office to office or even country to country? Having to make multiple calls and spending hours on the phone trying to get something resolved. By doing this, it helps companies allude responsibility and accountability. This is just another service your agent offers. By being in the business and learning the ropes, your agent can usually get thing resolved much quicker and certainly in less of your time. One of my clients became disabled and wanted to obtain his benefit on his own. After exhausting a month and many hours on the phone, he finally called me to tell me of his situation. After a few phone calls his check was delivered to his home in just 8 days.
By using an agent you have someone who comes to know and understand your needs as a person and a family. He/she will take the time to see what fits your budget and will contact or visit you in times of need. He/she will track down problems, watch over your finances, answer your questions, explain your policies, and make changes as needed. And all these service comes at no cost to you. So why wouldn’t you want to use your own agent?