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
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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.