Finance Globe

U.S. financial and economic topics from several finance writers.
2 minutes reading time (351 words)

Should You Use an Insurance Broker to Purchase Life Insurance?

Should You Use an Insurance Broker to Purchase Life Insurance?

When it comes time to purchase life insurance, there are many decisions to make. To start, you must answer this question: will you rely on the services of a broker or contact multiple companies direct?

Some people shy away from insurance brokers. They don’t understand how the process works. They don’t believe that the person has their best interests in mind. While there is nothing wrong with being cautious, you should familiarize yourself with the benefits of leaning on a broker.

Here are three reasons to contact a broker:

1. Save Time

Do you really went to spend days, weeks, and months trying to collect life insurance quotes from multiple companies? Of course not. With the help of a broker, you don’t have to worry about this. You can complete one application to receive quotes from multiple companies. Does it get any easier than that?

2. Save Money

When you shop direct, it can be difficult to obtain enough quotes to get a true idea of how much you should be paying for the coverage you need.

A broker will share your information with a large number of companies. From there, they can present the findings to you, giving you the option to make the final choice.

If saving money is most important, you don’t want to overlook what a broker brings to the table.

3. Professional Advice

Remember this: your broker doesn’t have a “horse in the race.” They get paid as long as you purchase a policy through them. The same does not hold true when buying direct from an agent. In this scenario, every agent you speak with will push you to purchase from them. Furthermore, you never know if the guidance you receive is a sales ploy or accurate advice.

If you have questions or concerns, your broker should be more than willing (and able) to provide the appropriate information.

You don’t have to use an insurance broker to purchase life insurance, but these benefits should help you understand why it could be a good strategy.

Do you have any other advice to share on this topic?

The Only Time a Store Credit Card Makes Sense
Can you Shave Money from these Three Budget Catego...
 

Comments 1

Frank on Thursday, 12 November 2015 16:34

Great information Chris. While I have never used a broker myself, certain situations can make using a broker a lot of sense. If the person is trustworthy, honest, open, and your situation is complex, a broker can make sense.

Great information Chris. While I have never used a broker myself, certain situations can make using a broker a lot of sense. If the person is trustworthy, honest, open, and your situation is complex, a broker can make sense.
Guest
Monday, 26 August 2019

Captcha Image