I’ll Tell You Why People Should Buy From Life Insurance Brokers

I’ll Tell You Why People Should Buy From Life Insurance Brokers

As an independent life insurance broker I am asked quite often, “why should I buy from you? I can just buy life insurance online.”  The answer is yes you could. But there is value to having an experienced independent insurance broker. First of all, our services are FREE. We are paid by the insurance carriers a commission. In most cases, we can find great products from A+ Rated insurance companies at a better price and value that what a consumer will find online. Why you may ask? There are several carriers that do not have huge marketing budgets because they only market through insurance brokers. Therefore, they do not have the big marketing budgets of some of the more well known insurance companies. Those savings reflect to cheaper premiums to the consumer.

An insurance broker is especially helpful if there are underwriting concerns. There are a lot of factors that can cause rate ups or even declines from buying life insurance. Some examples can be overweight, diabetes, high blood pressure, high cholesterol, prescription drug use, driving records and even occupations. The experienced life insurance broker can use case managers and underwriters to determine which product and insurance company to apply for. Thus avoiding an unnecessary decline, that can haunt you for years every time you try to purchase life insurance or health insurance. This will not be the case to the novice insurance consumer who unknowingly applies online not knowing the consequences of being declined for life insurance.

Let me tell you a story about a client I had recently. This is a story that illustrates the true value of an independent life insurance broker.  I received a referral from a somewhat frantic and upset man we will call “John”. “John” had a big issue with his insurance company bank draft. It seems “John” purchased $1 million 10 year term life insurance 10 years ago online without the assistance of an insurance broker, because he felt he would get a better deal.  “John” was 40 years old when he found his current policy. He was paying $80.01 per month with a very well known nationally recognized life insurance company. Which by the way, was about $15 per month too much, but I digress.  It seems that somehow, the 10 years were up and “John” wasn’t paying attention until the life insurance company took out his new adjusted premium of $3,768 per month! Luckily, “John” was still healthy and qualified for another $1 million in life insurance that we needed to get issued a.s.a.p. as paying over $3,700 per month was not a feasible option. I hate to think what would have happened had “John” had a health issue. Had “John” used an insurance broker 10 years earlier, he would have had known with plenty of advance notice that was about to happen and avoided having to pay the exurbanite high premiums for two months. That is just one example of the value of an experienced independent life insurance broker who is on top of client needs.

You can’t always get what you want, but if you try sometimes, you might find, you get what you need.”—Mick Jagger

Image by www.clipartguide.com


Tim Wilhoit is owner/principal of Your Friend 4 Life Insurance Agency in Nashville, TN. He is a family man, father of 3, entrepreneur, insurance agent, life insurance broker, salesman, sales trainer, recruiter, public speaker, blogger and team leader with over 25 years of experience in sales and marketing in the insurance and beverage industries.

14 Responses to I’ll Tell You Why People Should Buy From Life Insurance Brokers

  • I agree. A professional Life agent who represents several lines – is able to get the client the most benefits for the least cost. – A Professional Life Agent is there for the long haul and is available anytime with a simple phone call to answer questions in time of need. I for one – am available anytime.

  • Walter you are dead on. We are part of a very necessary branch of the insurance industry. Some younger people have lost sight of the value a good life insurance broker brings. I appreciate you sharing your thoughts.

  • Hi,Tim I loved your article about why you purchase life insurance with an agent, not a computer. I am a newly-215-licensed agent in the West Palm Beach Fl, where you can’t finalize any policies online and must work with an agent.

    Potential clients feel much better when they can ask a licensed agent any questions they have and get answers that usually help close the deal. You often become friends and the client tries to help you with referrals almost before you ask.

    I am a very new member of this group and look forward to your future postings.


  • Jim,
    Thank you so much for your kind words. It is a great industry that helps people everyday at some of their darkest times. I wish you much success in your new business.

  • I have just begun this career but find it wonderful to sell something that really helps people and pays so well. Name anything else that does it. The residuals don’t hurt,either. Stay well

  • Tim,
    IN addition to ALL you wrote, some pertinent comments.
    This country has been “Walmartinzed.” Imported goods at the Cheapest prices. Not quality or service but CHEAP. Considering middle class workers have not had a real wage increase since 1980 I am not surprised.
    Many consumers believe they can shop and purchase anything online for the cheapest price, be it sunglasses or life insurance. To them life insurance is a commodity purchase, their opinion of a life agent is a sleeze bag, out to rip them off, they don’t have the TIME to work with an agent, and on and on……………………
    One woman told me she thought she could buy life insurance online at a discount price and it would cost more to buy the same policy from the same company from me. She had no clue about State life insurance laws, rebating and so forth.
    Add to this the fact that most people deny their own mortality and don’t want to face it.
    If a person has no “altruism” toward another human being, charity or a business need, then there is no reason to purchase life insurance for a leveraged death benefit.
    I don’t write a blog, so I will stop here.

  • Thom, I agree with your “Wamartinzed” about cheap and online purchasing. The younger generation has been conditioned to believe online is cheaper. That is not the case with insurance products. The fact that agents are FREE and paid a commission by the carriers must be a foriegn concept for most of them. However, I do disagree that people don’t see the need for life insurance. Industry wide life insurance sales are increasing annually according to LIMRA. As personal wealth becomes harder and harder to achieve because of economic changes and increasing taxation, I believe life insurance sales will continue to trend positively. Thank you for sharing.

  • Spread the word, great points!

  • Thank you for the encouraging words Stephen. All of us life brokers need to stick together. Feel free to use the share buttons and continue to spread our message!

  • Nice article Tim, As an agent with a brand new Life Insurance company I hear this objection a lot. Thanks for providing the example of “John”.

  • Vern thank you for the compliment. I am always glad to help. Keep pushing forward, you chose a very noble industry my friend, much continued success!

Leave a Reply