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Why Use A Life Insurance Broker?

Life Insurance Brokers

Setting up a life insurance plan can be complicated. From the very beginning it is a process that most people don’t like to think about.

Who wants to sit down and try to figure out how much money their loved ones will need if they die unexpectedly? People like to think about happy things and this isn’t one of them. It makes it a hard process to enter into. Add on to this the fact that there are so many options available to choose from and many flat out don’t know where to start.

I often talk with clients about this. Whatever your occupation is, it is your job to know how to do that. It is not your job to understand how to do everything. Having a network of professionals that focus on specific roles makes your life easier. I don’t do my own taxes because I understand that an accountant is trained to understand tax rules and laws and how they change over time. I also won’t ask my accountant about how to fix my car because that isn’t their area of expertise.

A life insurance broker is a professional that fits into your team of experts. You go to them with a need and they apply their expert knowledge to help you determine the right life insurance policy, coverage amount, company, etc.

There is an important distinction to make when we are talking about life insurance advisors. An insurance broker is someone who represents your interests while searching different life insurance providers for the best solution to what you need. A life insurance broker is not someone who represents a single insurance company. A life insurance broker is able to search numerous carriers and present you with options from different insurers so that you can choose the coverage that best suits your situation.

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Why Is Working With A Life Insurance Broker Important?

Let’s consider an example where you have just taken out a loan and you need term life insurance that will cover you for the next 15 years until the loan is paid back. The most cost effective way to do this will be with a 15 year term life insurance policy. Here’s the thing though, not all providers offer this product. 

If you contact someone who exclusively represents one company and they happen to be a carrier that doesn’t offer this product then how likely are they to suggest it?

Are they going to realize that the most cost effective way to cover you is with something that they do not carry? The answer to both of these is likely no, meaning that you would end up with a policy that is less than ideal for your needs and has a higher premium than what you need. If you work with a life insurance broker who isn’t linked to any single life insurance carrier they can search the entire industry and then offer you choices that will include options from companies that provide the best solution for you.

Summary

If you are in the market to purchase life insurance, you should choose to work with a life insurance broker who is able to provide you with the complete picture of what is available to you. You should not limit your choices to only products available from one company.

Our online life insurance quoter is a quick and easy (also free) tool to use to compare all available life insurance companies products instantly. We provide our clients with a clear understanding of what is available for life insurance in Canada with no bias towards any certain company.

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