Buying life insurance is an important decision for you and your loved ones. The agent you choose plays a large role in helping you find the right policy for your needs, so take time to select someone qualified and trustworthy.
State Licensed
Your state's insurance department issues licenses to life insurance agents who demonstrate knowledge of insurance and agree to follow a code of ethics. Choose a licensed agent to ensure you work with someone who is permitted by law to issue policies and who understands the products available.
Willing to Listen
You deserve an agent who will listen. A good agent takes time to understand your financial situation, income, assets, attitude toward risk and personal circumstances. With that information, the agent can recommend products that meet your goals instead of selling something you don't want or need.
Explains the Details
Life insurance terminology can be confusing. A competent agent explains the differences between options—such as term and whole life—so you clearly understand what each policy provides and how it fits your plan.
No Pressure
You should never feel pressured into buying a policy. Choosing coverage and timing that fit your situation should be a thoughtful decision, not the result of high-pressure sales tactics.
Provides Written Documentation
After meeting with you, a professional agent should prepare a written summary tailored to your situation. That document should outline your financial snapshot, needs and the insurance options discussed so you can review them when deciding which policy to buy.
Fair Compensation
Most life insurance agents earn commissions on the policies they sell, while some may charge fees. Ask about how the agent is paid so you understand any incentives and can be confident recommendations are appropriate for your needs.
For information about professional liability and agent coverage, see Agent Services (Errors & Omissions for Insurance Agents).
Communicates Regularly
Life insurance isn't a one-and-done purchase. Your circumstances—family size, income or health—can change and may require different coverage. Pick an agent who commits to periodic check-ins to review your policy and recommend adjustments if needed.
If your situation involves specialized services, you may also find guidance at Escrow Agents Insurance.
When you're ready to purchase life insurance, carefully select an agent and review your options. If you want a personalized recommendation, talk to an agent.
Frequently Asked Questions
How can I verify an agent is licensed?
Contact your state's insurance department or check its online license lookup to confirm the agent's license status and any disciplinary history.
What's the main difference between term and whole life insurance?
Term life provides coverage for a fixed period and typically has lower initial costs, while whole life offers lifelong coverage and builds cash value over time.
How often should I review my life insurance with my agent?
Review your policy at least once a year or whenever you experience major life changes such as marriage, a new child, or a significant change in income or health.
What should I do if I feel pressured by an agent?
Take time to step back, ask for written documentation of recommendations, and seek a second opinion from another licensed agent before making a purchase.