Why would you choose to deal with a life insurance broker instead of directly with a life insurance company directly? Here are the top 5 reasons to choose to work with a life insurance broker.
- Cheaper prices. Brokers have access to the same products and pricing as purchasing directly from a company rep in most cases. But they also have access to a wide variety of companies – any one of whom may have cheaper prices. The ability to compare prices for similar products ensures you get the best products but at the lowest prices.
- Product. Not all companies offer the same products. Life insurance brokers will have access to both common and niche products – any one of which may be best suited for your situation.
- Underwriting selection. Life insurance companies underwrite differently (and thus have associated differences in premiums). Some companies will charge non-smoker premiums for pipe smokers, others may charge smoker rates. Some companies, for some medical conditions, will apply a 50% rating (or premium extra), other companies for competitive reasons will charge you standard rates. Some companies are more aggressively priced for those with a history of diabetes. Brokers who are familiar with the idiosyncrasies of different companies’ underwriting will help you get the best prices on life insurance by fitting you with the company who will underwrite you at the lowest cost.
- Long term service. Life insurance brokers are for the most part, independent small business owners. Dealing with an individual broker and you’ll likely continue to deal with that broker through the years. Conversely if you’re dealing with the customer service department at a life insurance company you’ll be unlikely to speak to the same person twice.
- Customer Service and knowledge. A life insurance broker would typically be well versed with different companies’ practices and be able to navigate them for you. If you need a form, the broker will be able to retrieve it for you. Dealing directly with a customer service department and you have no such assurance that they’ll have that broad a level of knowledge.
In the end, much of this boils down to having an independent small business person handling your customer service for you, in a knowledgeable fashion, with access to more products and better premiums than available from any individual company.
Feel free to reach out to us if you have any questions toll free at 1-877-344-4011.