Independent Agents Can Help You Secure the Best Life Insurance Rates in 
Working with independent insurance agents, otherwise called insurance brokers, can simplify buying life insurance. They can also find the lowest life insurance rates by shopping the entire market for you. There are two types of insurance agents, one being the independent agent and the other being the captive agent.
The independent agent can represent all companies, whereas the captive agent is just one. For example, State Farm employs captive agents that sell their only product line. Captive agents work for their company, and independent insurance agents work for you. Read these great money-saving tips below!
Regardless of what kind of insurance you are in the market for, independent insurance agents are the ones that obtain the lowest rates for their clients.
Table of Contents
- Why Should You Work With an Independent Agent?
- What Life Insurance Company Should I Apply With?
- Do I Have to Take a Physical Exam If I Apply?
- What Type of Life Insurance Should I Apply For?
- What Factors Can Affect My Life Insurance Rates?
- How Can I Compare Life Insurance Quotes?
- How Can I Help Lower My Premiums?
- Can I Have More Than One Life Insurance Policy?
- Should I Consider Universal Life Insurance?
- Can Being Overweight & Smoking Affect My Rates?
- What Is Guaranteed Issue Life Insurance?
- In Conclusion
Why Should You Work With an Independent Agent?
Independent Agents, also known as (Brokers), represent all the top-rated carriers and can effectively shop the market for you for the best rates.
Independent insurance agents will usually represent all the top-rated life insurance companies in the nation. This gives you the advantage of choosing the carrier that will offer you the lowest rates. Captive agents who work for companies such as State Farm will only represent their company. If you have medical conditions, a dangerous hobby, or an occupation, you must choose a broad choice of companies.
Independent insurance agents are brokers who work for their clients, not insurance companies. They always have your best interest in mind, not their employers like captive agents. Independent insurance agents can help you get the best product at the lowest rates possible, regardless of what kind of insurance product.
What Life Insurance Company Should I Apply to?
Depending on your specific lifestyle and medical history, your agent can help you choose the best company to apply to.
There are well over 40 highly-rated life insurance companies in the United States. Independent insurance agents usually use all of them. The key is to use the company that best fits your specific profile. Your profile with revolves around several areas of information, such as:
- What is your height and weight ratio, such as being overweight or obese?
- Do you use tobacco products such as smoking cigarettes or cigars?
- Have you been diagnosed with medical conditions such as high blood pressure?
- Do you have a dangerous occupation that could kill you?
- Are you involved in any hazardous sports where you could be injured or killed?
Choosing the right company for your specific lifestyle is very important. It is usually the number one factor when looking for the best life insurance rates. Brokers can shop the entire market for you to find the best life insurance rates.
Do I Have to Take a Physical Exam If I Apply?
You can choose a No Physical Exam policy if your health is fair, but these plans have higher premiums.
Most people don’t appreciate the idea of having to take an exam along with a blood test. If you want the get the very best life insurance rates. Take the test and get the lowest premiums possible. It will be worth it in the long run. All independent insurance agents are contracted with companies that offer No Medical Exam life insurance, but these plan designs cost more.
Non-Med policies do not require a Paramed exam, but they usually come at an additional cost. However, conventional, fully underwritten term life insurance policies will still be the cheapest, no matter how you look.
What Type of Life Insurance Should I Apply for?
There are three main types of life insurance policies in an independent agent’s arsenal of products such as:
- Term Life Insurance – Learn more
- No Medical Exam Life Insurance – learn more
- Universal Life Insurance – Learn more
Term insurance will be the most popular and cost-effective of the three types of policy designs. Whole life is a permanent plan design used on a limited basis because of its cost. As a result, many companies dropped Whole life from their product line years ago.
Universal life is a permanent product that works very well if someone wants life insurance for the rest of their lives which can be a great idea. You can also combine term and universal life to make the perfect portfolio.
What Factors Can Affect My Life Insurance Rates?
Many things come into play when looking at a potential monthly premium. Here are some of the cost factors that will affect your premium:
- Overall health history (pre-existing medical conditions).
- Height & weight (body mass index).
- Your occupation (if hazardous).
- Driving record.
- Credit history.
- Prescription drug usage.
- Parents & siblings’ life longevity.
- Traveling abroad (in hostile countries).
- Dangerous hobbies or sports.
All of these questions will appear on a life insurance application and will all be considered.
How Can I Compare Life Insurance Quotes?
You can compare over 40 trusted companies in just minutes, displayed side by side.
Instantly compare rates from over 40 of the top-rated carriers. The side-by-side comparisons you will review are from the most competitive in the nation. This is because every carrier’s rates are now in plain view for every consumer. As a result, the carriers are forced to publish the lowest rates possible to stay competitive.
The invention of the quote engine, as we have on our website, helped reduce life insurance rates for everyone. So if you smoke marijuana, call us for a quote over the phone. All life insurance companies underwrite marijuana users differently.
How Can I Help Lower My Premiums?
You may achieve one discount by using rate bands to your best advantage. Independent insurance agents use these to help get the lowest rates for their clients. Here is a simple example of how they work. Many times people will ask for a face amount of $200,000. This is a typical example.
There will be a rate band discount when the face amount is $250,000. This means if the agent quotes the client at $250,000 instead of the requested $200,000. The total premium will be less while at the same time picking up an extra $50,000 in coverage for less money.
This same principle works for other rate bands beginning at $500,000 and $1,000,000. This is a form of buying in bulk or getting discounted rates to buy more. The rate per $1,000.00 in coverage is reduced and can add up to a significantly reduced premium.
Can I Have More Than One Life Insurance Policy?
There are no limitations to how many policies you can own. Laddering policies will help you save money.
This brings up the subject of “laddering policies” to save money. People will often need a specific face amount, which we will use as $1,000,000 for the example. They may need this life insurance for 30 years, but the bulk of the face amount will only be required for 20 years. You can purchase two or more policies with staggered term periods and face amounts.
A quick example would be when an individual needs $1,000,000. This individual’s mortgage will last for 20 years, dropping off this debt. In this example, this person could purchase two policies—one for $500,000 for twenty years and another for $500,000 for 30 years.
After the first 20 years, the 20-year term policy drops off, leaving the other policy in force for another ten years. It will be much cheaper to do this than have one policy for $1,000,000 for 30 years. The shorter the term length is, the lower the premium will always be.
Should I Consider Universal Life Insurance?
Universal Life is a permanent life insurance that primarily replaces Whole Life insurance.
Purchasing permanent life insurance (Universal Life) is always a great idea if you can afford the additional premium cost. We never know what the future holds, so it is nice to have life insurance protection that never terminates, like the very affordable term life insurance plans.
The whole life will last the rest of your life, but the premium is higher than the term. It is so much higher that it is not cost-effective for most people. This is a permanent product that has an extreme cash value build-up. The cash value feature is what makes the overall premium so high. The whole life could easily be ten times the premium of term insurance.
On the other hand, Universal Life is also a permanent product but has a much lower premium. It does not have this vast emphasis on cash build-up as Whole life does. I recommend universal life with a no-cash build-up feature if you want a much lower premium permanent life insurance.
In many cases, universal life will still cost more money and over double the cost of any term product. However, universal life is very affordable if purchased at a young age. Most people, unfortunately, wait too long to get life insurance.
Can Being Overweight & Smoking Affect My Rates?
Smoking cigarettes can increase your rates by over 250%, and being overweight can severely impact your rates, also.
Many of the people that I speak with are overweight or use tobacco products. Being overweight and or using tobacco will severely affect their premiums. Most people don’t know if they purchase life insurance at higher rates due to their weight or smoking. They can contact the company for reconsideration after losing weight or stopping smoking.
The companies will generally reconsider the individual one year after losing weight or stopping smoking. They can change the health classification which will lower their premiums on an already in-force policy.
The life insurance company can reduce its premiums if a positive change has been made. Smoking can triple your rates, producing a very high reduction in weight if the person stops smoking and stays out of tobacco products for at least a year.
What Is Guaranteed Issue Life Insurance?
You can always purchase Guaranteed Issue coverage no matter how bad your health is.
Guaranteed Issue Life Insurance is a bad investment unless you are in feeble health. Anytime you purchase life insurance with guaranteed insurability, you will pay very high premiums and have a small face amount, such as $25,000. Guaranteed-issue life insurance should only be purchased by people with severe health conditions that prohibit them from purchasing conventional coverage. These policies should only be purchased if there is no choice due to extreme medical conditions.
If you have a medical condition, sometimes purchasing a No Medical Exam policy may help, but as I just said, that is occasionally. Conventional, fully underwritten policies are almost always the cheapest and best way.
If you have any questions, don’t hesitate to contact us. We offer free help at no cost or obligation seven days a week. Suppose you find life insurance confusing or not. We need an experienced independent insurance agent (hopefully we can) to help you and answer all your questions. If you decide you would like to apply, we offer quick and easy telephone applications that make applying for life insurance a snap.
All the best,
If you have any questions about the benefits of working with independent insurance agents, contact us today to help you at no cost or obligation. Remember that we are brokers and work for our clients, not insurance companies. Our job is to help you get approved for the best policy for your needs with the lowest possible rates. You can also set up a specific time at your convenience to talk.