We should be familiar with different features of life insurance policies before we buy one. Most of the time, we have no opportunity to be acquainted them. That is why we often buy the wrong policy and when we come to realize our mistake, we can but repent. We cannot do anything else. An insurance agent is your friend, philosopher and guide. He is the one who should be explaining to you the different types of insurance plans, their advantages or disadvantages. He is the one who should explain if the plan offers only life coverage or investment opportunity as well.
This is a concept that an agent has to sell. If he is honest and true to his profession he should explain every little point to the best of his ability. He must explain the difference between the term and the permanent insurance and make the would-be policyholder acquainted with different permanent policies as well. In short, the agent should make sure that the customer understands what benefit he will be getting in lieu of the premiums he will be paying when he buys the policy and make an informed choice.
This does not always happen. When we decide to buy a policy, we call a insurance carrier of our choice and talk to a customer care executive, who generally refers us to a field executive. Alternatively, we may straight away approach an independent agent who works for the carrier on commission. In either case, there are chances that they will not explain the limitations of the policies. They will highlight the advantages only.
You must appreciate that the choice will be very much limited if you go through this process. The agents and the customer care executives will tell you about the current plans of their carrier. Their interest will lie in persuading you into buying one of their policies and they will not tell you about a more advantageous plan that any of their rival may have. If you, for example, are looking for cheap term quotes, they may try to divert and talk you into buying something more profitable for them.
These agents and customer care executives are specially trained by the company to sell their products. They know how to convince a customer to buy a company product, even if the particular plan does not suit the particular customer. After all, the company is providing them with both the bread and the butter. That is why many people prefer to go to an insurance broker instead. While an agent represents just one insurance carrier, a broker represents many.
While an agent can tell you about the current projects of only one carrier, the broker will have all the existing plans of most of the renowned carriers out in platter for you to see and choose. Therefore, if you ask for cheap term quotes, all you will have to do is to fill up the relevant quote form and ask for term life quotes. You will not have to meet them initially, if you do not want to. The entire procedure can be carried on through the internet. Once you have filled up the quote form and request for quotes, the brokers' search engine will find all the suitable insurance quotes and start flashing them on your monitor. You now have to choose and apply.
However, the term cost depends on many factors. Examine each before you opt for one. You will lose if you make the term insurance cost the only criteria. The lowest is not always the best. The rates may be lowest, if you opt for the yearly term life insurance, but if you want it for a reasonably long term, the rates will become economically unviable. Think before you act. Moreover, learn to ask questions. The brokers and agents are there to answer all your queries. Clear whatever doubt you have before you sign on the dotted line. Try to find out about different policies as much as you can. Do not allow the agents and brokers to talk you into buying something you do not want.
A knowledgeable and experienced broker is the best friend you can have. He is not only your financial adviser, but also your friend in need. It is important to develop an intimate relationship with him. However before you do that, make sure that he is:
Honest
Reliable
Knowledgeable
Experienced
Good tempered and willing to explain
Always accessible