Do I need an agent to purchase insurance?

Many people question the need for an agent when purchasing life insurance. They don't want to feel the pressure of an agent trying to sell to them, or they think agents can charge a lot of commissions. The person might feel more comfortable researching online and not speaking with anybody. Although these concerns are valid, we still believe an agent brings a lot of value to the experience, and an agent can even save you hundreds to thousands of dollars in premiums. That is correct; an agent can actually save you money rather than cost you money.

Does using an agent to purchase life insurance cost me more money?

There is a common misconception that purchasing life insurance is cheaper if you buy "direct" from the insurance company. Since you are buying "direct" or "online," you don't have to pay an agent a commission, which will save you money. This is simply not true!! Especially when referring to term life insurance. To put it plainly, whether you purchase a policy online, "direct," or with an insurance agent, the premiums are the same. The insurance companies state the premiums, and they are the same no matter how you purchase the policy. For example, let's say a 40-year-old female who does not smoke is looking to purchase a life insurance policy for $500,000 on a 20-year term with ABC Insurance Company. That premium will be the same online, direct, or by calling a local agent or broker.

So why should you use an agent?

An agent can help you navigate the different types of policies and help you determine which policies you would most likely qualify for. In order to purchase life insurance, you must first qualify. This would mean a short health questionnaire and application. If you are healthy, then you might be able to qualify without any medical exam. An agent can walk you through this and advise you on which places require medical exams and which do not. You can learn more about How your health determines your premium here.

Aultium insurance agent is standing by waiting for your call.

A professional, experienced agent knows the best policies and companies for your particular situation. The agent has access to so many more resources than you do. An experienced agent knows which companies are best for each client's situation.

Let us illustrate…

Lucas wants to purchase a $500,000 life insurance policy with a 20-year term. He is a little overweight and has high blood pressure. He goes online, types in his basic information, and receives a list of the top 5 premiums from different insurance companies.

  • ABC Insurance company is $30 a month

  • DEF Insurance company is $32 a month

  • LMNOP Insurance company is $32 a month

  • RST Insurance company is $34 a month

  • XYZ Insurance company is $39 a month

Obviously, Lucas wants the best premium, so he applies for ABC insurance company. He fills out the application, takes a blood and urine exam, answers some medical questions, and waits for the company to make an offer.

Four weeks later, ABC insurance company returns and says they can insure Lucas, but because he is overweight and has HBP, the new premium will be $41 a month.

Now he has a choice. Does he apply for company DEF or LMNOP? What if they do the same thing? What if he has to wait 3-4 weeks to get an offer for each one? So Lucas takes the offer from ABC company and pays the $41 a month.

Alternatively, Lucas could have reached out to Aultium Insurance Services. Their experienced agents would've known immediately that companies ABC and LMNOP would offer a higher rating for his conditions and that he would be best applying for company DEF. With the agent's help, he has to do a lot less work. 2 weeks later, Lucas would receive his offer as applied for at $32 a month. This saves him over $100 a year and thousands of dollars over the life of the policy.

Let the agent do all the hard work!

An agent can also do all the dirty work for you. For most people, qualifying for life insurance is pretty streamlined. However, for others, additional paperwork may be needed, including medical records and answers to questions from the underwriters. An agent can help do all the leg work for you. And remember, this is for the same price you would pay if you handled it yourself.

If you would like to test the waters first with no sales pitch, no obligation, and no pressure, you can schedule a 10-minute FREE Consultation here with a licensed agent. This agent can answer any questions you might have. YOU can be in charge of the conversation. Click below and schedule a time that is best for you.

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