Life Insurance Agent

Kinds of insurance agents

You should be aware that the marketing of insurance policies has been rendered flexible these past two years. There are two types of life insurance agent that you might meet, in the flesh. The first type is called the “captive agent”.

The captive agent can only represent one insurance company; therefore, he must exert extra effort to convince people by offering all the available options and policies of the sole company that he’s allowed to represent.

The second type of insurance agent is the “free agent”. Free agents are free to sell insurance policies from different companies to clients. Insurance providers who want to make as much profit from their daily communication with clients cater to the needs of several insurance companies. This can only be done if free agents are used, instead of captive agents.

What can a good insurance agent provide?

A good life insurance agent should be able to accomplish the following:

Clearly outlining what insurance policies are currently available.

The agent should also be able to adjust to your present financial capacity, verifying with the insurance companies themselves whether rate adjustments are possible, in your case.

The agent should also be well informed of the fine print of the different policies. As an agent, he or she should be able to explain clearly whether a policy would apply only to a particular health class only, etc.

Finally, the agent should be willing to work with the client for as long as possible. This is to ensure that the client is not rushed to a decision that he or she would later question.

Decision-making & the role of brokers

Paying for life insurance is not a child’s game; more often, it can hurt your monthly finances. Therefore, you must be given enough time to compute the additional expenses that a policy’s monthly premiums would place on your limited budget.

Remember, you can contact the broker itself if you have any additional questions. The insurance broker communicates directly with the companies to set your policies for approval. These brokers make money by receiving a commission for sold insurance policies or they charge a fee. GP