Choosing a life insurance agent
Whatever image you may have of life insurance agents, whether negative or positive, you should realize that their responsibility to you is to guide you and assist you with all of your specific life insurance needs. They can walk you through the decision process and help you to positively impact the lives of your family members and loved ones for that time in life when you are no longer alive. Therefore, it is critical that you select the right life insurance agent and company to handle your personal needs.
Steps for choosing the best life insurance agent
First and foremost, it is your specific life insurance needs that should be considered when you set out to choose the ideal life insurance agent. Remember that you are ultimately the individual that has to pay for that policy and then benefit from it. Additionally, you need to take into consideration what your finances will allow you to pay for a life insurance policy and how much you are hoping to benefit from that policy. Here are some helpful tips where this is concerned.
Determine how much you can afford to spend on your policy – the life insurance agent you select should be able to assist you with the choices available that will best suit your budget. Therefore, establishing your budget for an insurance policy is most likely your first move when shopping around for an agent and a policy. Take your fixed monthly costs into consideration when establishing your budget. These include:
– insurance (auto, home, and life)
– monthly loan obligations
– monthly mortgage payment (or rent payment if you are not a homeowner)
– Other necessary living expenses (e.g. food and utilities)
The next step is to divide your monthly salary in half. The best case scenario is that one half should cover all of the above expenses and the other half needs to go towards other necessities such as retirement and savings.
Determine your specific life insurance needs – there are 3 basic factors that you need to consider when shopping around for a life insurance agent and policy. These include:
– ensuring that your debts will be paid should you pass away
– income replacement to compensate for the loss of yours
– your dependents needs being satisfactorily met
Your next move will be to find a life insurance agent and policy that facilitates the above primary needs within your budget.
Additionally, you want to consider any intangibles such as the customer service levels of that particular company as well as how responsive that life insurance agent will be. You need the peace of mind that comes with knowing that your policy will handle whatever situations arise as well as knowing that you are never out of touch with that agent should the need arise. The bottom line is that you want to find the ideal life insurance agent, the right life insurance policy, and at a price that fits within the parameters of your budget.