Ten Questions To Ask A Life Insurance Broker
Life insurance has numerous advantages like tax benefits, return on your investment and pay-outs from certain policies. While this is the case with most insurance schemes, it is important to do your research into the coverage your life insurance provides. Check the age criteria they look at to decide premium along with the long term viability and the rate at which you recoup your investment. This being said, it is easier to gain a deeper understanding of insurance benefits and the pitfalls you should look out for if you employ the expertise of a competent life insurance broker.
However, if you’ve never availed of life insurance before, it is understandable if you don’t know where to start when it comes to choosing the right life insurance broker to suit your specific needs and financial limitations. To make the whole process easier for you, we’ve outlined ten valuable questions to ask a potential life insurance broker.
During your initial consultation, ask these questions to help you understand if this insurance broker is the right fit for you, and capable of providing you with adequate life insurance advice and options.
1. How long have you been in life insurance brokerage?
Experience counts in every field and has similar reverence in insurance brokerage. Insurance, investment services, and financial planning are ever-evolving, complex fields that sometimes, even with adequate education and training, take years to truly understand. Ensuring the life insurance brokerage you choose has experience will give you peace of mind, knowing your investment is safe and can be used should the need present itself.
2. How many insurers do you represent?
There are small insurance companies that have a few insurers, then there are the big players representing multiple insurance and investment companies with access to all the major carriers. Finding out approximately how many insurers the insurance firm you plan on utilizing represents, gives you an idea of the life insurance options the brokerage has. It will also serve as a direct reflection of various investment avenues and returns offered by the brokerage.
3. Do you have any professional designations?
In a world of financial crash courses, (sometimes) misleading advertising, and investment malpractice, finding out if the life insurance broker you are about to entrust your hard-earned money to is trustworthy is an essential precaution. Inquiring about any professional designations to noteworthy fellowships like CSI (Candian Securities Institute) can put your mind at ease with the knowledge the financial advisor or brokerage professional you are dealing with has met the highest standards in education, ethics and experience.
4. Do you have testimonials and reviews to back up your claims?
It goes without saying that testimonials and reviews, both online or by word of mouth are extraordinarily useful in gauging the track record and competency of the life insurance brokerage you plan on using.
5. Why choose your brokerage above your competitors?
As mentioned before, there are a huge number of life insurance offerings out there through various brokerage firms and private companies. While the options can be bewildering, it undoubtedly pays to choose the most conscientious and reliable insurance brokerage to ensure your investment is safe and yields the desired benefits.
6. How are you compensated? Do some carriers pay you more than others?
Most insurance brokers don’t charge their clients a fee as they make sales commissions on insurance products or services they sell directly from the insurer or provider. They receive an upfront commission based on the cost of the first year’s policy premium, as well as ongoing or residual commissions each year the policy is in force. Finding out exactly what the broker is making on your insurance expenditure is useful in determining their motive and integrity.
7. Do you have an office?
Some insurance brokers work out of their homes or unofficial locations. While the practice is generally accepted, finding a life insurance broker that has a convenient office location is preferred as a life insurance firm that has a physical location should give you added peace of mind knowing you can approach them to expedite any claims or clarify doubts at a moments notice.
8. Do you offer living benefits or only term life insurance?
Whole life insurance policies can seriously pay off in terms of living benefits that you can enjoy during the course of your life, building your cash value that accumulates and can be utilized should the need arise. Alternatively, for a lower premium and coverage that lasts a specific time, you can get term life insurance that only pays out a death benefit to the beneficiaries in case of a fatality.
9. Do you require face to face meetings?
While an office front location is definitely preferred. With social distancing and our busy schedules, we often don’t get much wiggle room for extra tasks like face-to-face meetings. As a result, finding an insurance brokerage that has the ability to communicate efficiently online and remotely has become more essential than ever.
10. Do you work as part of a team?
An important part of most professional relationships is teamwork. Finding out if the life insurance broker you work with is a lone ranger, or works with other investment and insurance professionals to provide consummate and competent insurance service is useful and is sure to give you an idea of the kind of service and insurance products to expect.
If you are looking for a professional life insurance broker in Vancouver, BC, we would love to hear from you at Camlife Financial Corp. We provide families and businesses with financial planning, insurance, and investment opportunities and believe that everyone’s situation is unique and take the required time to determine their specific needs, devise a plan and shop around to see which insurer or investment company best fits you.
We offer a variety of life insurance solutions like term life insurance, mortgage insurance, life insurance for new immigrants, non-medical life insurance, Manulife Vitality, permanent life insurance, universal life insurance, whole life insurance, living benefits insurance, critical illness insurance, etc. We serve clients across Vancouver, Richmond, West Vancouver, North Vancouver, Burnaby, Surrey, White Rock, Langley, Coquitlam, Maple Ridge, and New Westminster BC.
Reach out to Camlife Financial Corp today to set up a consultation, or to learn more about what we can help you with, visit our website by clicking here.