Life Insurance. Do you go with a local agent?

[snafu]

Your agent thinks it's a good idea to keep existing whole life policy because it keeps paying a higher commission.

[Gailete]

Your agent thinks it's a good idea to keep existing whole life policy because it keeps paying a higher commission.

....To Him!

[Gailete]

Yes, i would like to go with local agent because when buying from an agent, there are many advantages. You get the chance to work directly with an assigned insurance agent who is local to your location and they may be someone you actually know personally. Many insurance agents operate in the same town that they live in.

I'm not sure I see why any of that is a benefit. Especially now when you can go online and pick and choose what you want. No matter how friendly and nice they are, their wallet is generally their uppermost concern, not your wallet.

[disneysteve]

Yes, i would like to go with local agent because when buying from an agent, there are many advantages. You get the chance to work directly with an assigned insurance agent who is local to your location and they may be someone you actually know personally. Many insurance agents operate in the same town that they live in.

Let me guess what you do for a living

[rennigade]

Yes, i would like to go with local agent because when buying from an agent, there are many advantages. You get the chance to work directly with an assigned insurance agent who is local to your location and they may be someone you actually know personally. Many insurance agents operate in the same town that they live in.

You didnt actually list any advantages. If anything you made the case stronger to find an agency online.

[snafu]

Yes, i would like to go with local agent because when buying from an agent, there are many advantages. You get the chance to work directly with an assigned insurance agent who is local to your location and they may be someone you actually know personally. Many insurance agents operate in the same town that they live in.

Alice S. I understand the benefits to the local agent, can you tell me how a local agent benefits me? After 20 years, claim free we had a break-in. The local agent's telephone service instructed me to call the 'Claims Office.' No, she didn't have the phone number, address or hours of operation but it 'was easy to look up.' [It is not a State Farm operation, but a joint operation for a group of insurance agencies].

The entire process from finding our home trampled topsy turvey by thieves, to finally signing off the claim 7 months later was horrid.

I didn't have a chance to talk to my agent's secretary until the next premium statement. The agent was about to retire and his son planned to take over the franchise [agency]. As clients for more than two decades, DH and I were invited to the good bye coffee klatch.

Life Insurance: If you have life insurance as part of your employee benefit package, I suggest you check out the possibility of using that same provider. If you leave that specific employer and they have a pass though program, it would be nearly seamless.

[Captain Save]

We are in the process of getting life insurance (Term) and I was wondering if people here go with a local agent or if you go online for a better deal?

For what we selected our local state farm agent quoted my wife for $500,000 for 20 year term at $500 per year. Online through Zander Insurance (Dave Ramsey's recommendation) and I only used the site to get an easy quote so maybe not the best idea but their providers were offering the same coverage at $200-$300 a year.

Any suggestions?

If you're looking for a quick quote ..

www.term4sale.com is probably the most comprehensive way to get quotes on term life and you don't have to enter any information.

Hope the mods are ok with me posting the link ... but I hold no affilation with them ..


A quote can be seen as a "hook" or it could be misleading .. unless the person going over the quote took in all your health information. For example there are some insurance companies who are known to look good in a comparison quote but only 5% of people out there would every qualify for their best rates.

There are plenty of affordable solutions out there with companies that are pretty lenient.

Prudential for example will not be among the most affordable out there .. but it's a lot easier to qualify for the Preferred best rates.

The only way to compare is to deal with an independent agent who has access to the majority of the companies. Though if you're super healthy it won't matter as much.

Local agents tend to be P&C agent, and they're not necessarily good field underwriters because they are doing mostly auto, home and business.. life is an afterthought. Though some agencies, might have a life specialist.

[Captain Save]

Your agent thinks it's a good idea to keep existing whole life policy because it keeps paying a higher commission.

Where do you guys get your information?

An agent's commission on life insurance policy is in the 1st year commission, that includes both term and whole.

There is not much of an incentive for an agent to tell the OP to keep the policy.

There are renewal commission but it's usually around 5% of the base commission in the 1st 5 years and goes down from there?



Where is this policy that "keeps paying higher commission" that you speak of?

[Captain Save]

You're right, it's not a good idea. When your term policies are live, cancel the whole life!

Please do not tell a random person to cancel a whole life policy. Depending on how much cash they had build up in relation the the premium paid, it could be a taxable event.

Chances are if it's early in the process, cancelling won't hurt much, but unless you have all the right information, you should not give blind advice on what to do with a whole life policy.

The good news is that most people who would come in a forum and ask that question are probably early in the process.

There is also the option of reduced paid up. which locks in a portion of the death benefit and the life insurance can be paid for and you can use the cash as an emergency fund that could earn higher rates than a savings account.

Again that depends on how far along you are in the process and whether or not you have a dividend paying whole life.

[Captain Save]

lol.. I think Alice D is a robot.

[WDELTA]

Captain save,

Not a good robot either!

But I’m gonna buy insurance locally now!

[LivingAlmostLarge]

i bought 25 year policies at 30 and 32. Figured we'd have 2-3 kids and be finishing when we are done with college. Locked in ing insurance that long ago. Anyway I pay $1000 for 2m on DH and $200/year for $500k on me. I also got more on DH later for 20 years $2M for $900/year 2 years later at 34. It's dirt cheap to protect ourselves.

This is horrible to say but I can't believe the number of people i know who only have insurance through work and they have so little coverage like 2x their income. CRAZY. Not enough to even pay off the house.

[tkennedy]

Online is the way to go. Accuquote or similar. When you go to a local agent you’re just paying his salary.

HAHAHA - clueless. Online quotes are through companies with licensed AGENTS and they are paid a commission by the insurance company the same as an independent agent.

There is no "mark up" in insurance rates if you use an agent versus online - same rates! And with an agent you have a person taking care of you not a 1-800 number

[Captain Save]

I agree .. accuquote and all the bigger outfits.. have "green" agents who are not well versed in field underwriting. Field underwriting is what gets you great rates .. not a quote.. a quote is an illusion unless you super preferred with every carrier.

[TexasHusker]

HAHAHA - clueless. Online quotes are through companies with licensed AGENTS and they are paid a commission by the insurance company the same as an independent agent.

There is no "mark up" in insurance rates if you use an agent versus online - same rates! And with an agent you have a person taking care of you not a 1-800 number

If you're looking for a term policy, online is a big time saver: Most local agents will try to convince you to buy something else or move your car insurance to them. Thus, a 30 minute exercise turns into an ordeal.

A term policy is a "one and done" deal. You aren't needing assistance with raising a deductible, adding coverage for increased value in your property, and all of that.

You shop it, get your medical to confirm the rate, and buy it. No one will ever contact the insurance co. again until you die.

Local agents bring pretty much no value to buying a term policy.