Need A Life Insurance Broker? 3 Key Questions

The right life insurance broker can make choosing a life insurance policy an easier decision to make. Not only do they have a relationship with several life insurance companies and can get you the best deals, but they also will be able to answer any questions you may have.

To start you off, here are three key questions to ask about your potential broker.

1. How Much Experience Does the Broker Have?

The more experience, the better. An insurance broker who is just starting will not have the same amount of expertise as a person who has been in the business 15 or 20 years. You don't want to be the person your broker is learning with.

Inexperience can cost you in many ways. For one, an inexperienced broker may not have an extensive relationship with many insurance companies. As such, you may be missing out on cheaper insurance policies.

An inexperienced broker can also give you misinformation, and you can't afford any misinformation with an important decision like life insurance.

It is best to find a broker through recommendations. Friends, relatives, financial advisors and co-workers can tell you their experiences with their own brokers. The one who listens to their clients' needs, reviews their policies every few years, and has a proven record of looking out for their clients is the one you want.

2. What are Their Qualifications?

It is always wise to check out a broker before you sign on with them. Their qualifications will give you proof that they know what they are doing. It is also a chance to see if your broker has any disciplinary action against them.

All insurance brokers must be state licensed. Your state should have a way you can check out their license by either phone or website. Professional designations, such as Chartered Life Underwriter (CLU) designation, are another way to see if the broker is qualified.

The Better Business Bureau is a quick and easy way to find out about many insurance brokers. They will also list complaints that have been lodged against them broker and what, if anything, has been done to resolve them.

3. How Many Companies Does the Broker Work With?

The number of companies your broker works with can give you an idea of how extensive your broker's policies will be. The more companies they have a relationship with, the more options you are likely to have.

It is also worth finding out if the broker knows the quirks of each of the companies they work with. One health problem could disqualify you for one company's "preferred risk" policy while still allowing you to be on another's. The more your broker knows your market, the more money you can save.


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