Your life insurance policy is only as good as your agent. I believe we have all heard this saying many times through the years. There is no question about it, this is a very true statement. Unfortunately, I have found that people who had purchased life insurance in the past were given poor advice. The end result is usually not very good and they were improperly insured.
They may have life insurance that is not properly suited for their specific needs. This problem can range from paying too much in premiums to outliving their life insurance policy. There is nothing worse than having life insurance terminate when you still need it. This all stems from poor planning at the time the application was originally taken.
The statistics show that over 68% of life insurance policy owners have a plan that does not meet their financial obligations.
Let’s take a look at a simple example such as this. Joe Stevens who will be our fictional example is 28 years old. He has a new $325,000 30-year mortgage on the home he just purchased. The life insurance he purchased after he just purchased the home is a twenty-year Term policy for $250,000. What is wrong with this picture? The answer is two things are wrong. Number one if Joe passes away in the near future. His spouse will have a check coming in the mail for $250,000. She will not be able to pay off the mortgage amount of $325,000 which will leave her short $75,000.
Also, if Joe passes away in over a 20-year time period. His Term policy would have terminated and there will be no life insurance period. Joe would normally have had a conversion option to be able to convert the Term policy to Universal life. Universal Life is permanent form of life insurance. But, the premium very well may have been too high for him to be able to afford. These types of problems are occurring to people on a regular basis every day.
How in the world do these very common life insurance mistakes happen in the first place?
People such as our imaginary consumer Joe Stevens, possibly went to a captive to buy his life insurance. A captive agent works for his one and only life insurance company. This captive agent may have been from State Farm, Allstate, Country Companies or a few others. The problem is they purchased their life insurance from an individual that sells only one brand of insurance. These agents primarily are auto insurance specialists who just dabble in selling life insurance.
Independent insurance agents have a major advantage over the captive agents with the ability to shop the entire market.
Joe might have told his State Farm agent that he needs to buy life insurance. That is exactly what Joe received, a life insurance policy. Unfortunately the policy he was sold was virtually a total was of money because it was written incorrectly.
The captive agent did not have the experience and expertise of an independent agent. Especially an independent insurance agent who specializes in selling life insurance. Joe simply did not know any better and he failed to do his homework and review his options choosing an agent. Joe’s dependents may pay the piper if this policy is not discovered prior to Joe’s death.
Purchasing your life insurance direct from the carriers with no agent involved, This is a big mistake just waiting to happen.
If you have an idea that purchasing your life insurance direct will offer any advantages you better think again. Keep one concept in mind. The life insurance premiums will be exactly the same no matter who you buy it from. All life insurance rates are regulated by law for your protection. This eliminates the used car lot effect where prices become a game between the sellers and consumers. If you apply direct, you will not have an agent to look out for your best interest.
We shop the market using over 40 of the best life insurance companies to find the best life insurance rates.
There will be no shopping the market for you and pre-screening any medical conditions, dangerous occupations or hazardous sports. It is critical to review the rates from several companies before you apply. You need to make sure you know who will offer you the best life insurance rates for your specific health history and lifestyle.
You could also be working with an inexperienced person at the insurance company. Their only job is to sell you a life insurance policy. May the policy be the correct one for your needs or not. This same insurance employee may have been flipping hamburgers at Burger King last month. Now they are selling you one of the most important products you will ever purchase.
There is a right way and a wrong way to buy life insurance.
If you are planning to purchase low cost Term life insurance anytime soon. Contact an experienced independent insurance agent who will shop the market for you. He can locate the very best life insurance policy with the lowest premium. Just as important, choose the proper plan design for your specific needs.
Independent agents offer a full line of life insurance product including Term life insurance, Universal Life or Whole Life.
Purchasing the best life insurance is a very important event and you want to make sure it is done right. Especially for your dependents sake who would benefit from the life insurance. If you are shopping for low cost Term life insurance, connect with an experience life insurance specialist. Universal Life insurance has replaced Whole Life insurance for the most cost effective permanent plan design.
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Our mission is to help you find the best policy to fit your specific needs and your budget. Take advantage of our free online life insurance quotes and see for yourself who has the lowest rates. Give us a call and we can answer all your questions right over the phone. There is no cost or obligation for our help. Take a moment to read our about us page to learn more about us and our business.