Term Life Insurance Brokers – Should You Go To One?

Life insurance is a very important investment in life. If you are looking for a cheap and reliable policy, term life insurance is a good choice. It is one of the cheapest in the industry. It gives you the freedom to choose the term and is very simple to understand. You might be confused about which term life policy to purchase because of the many options that you have. Term life insurance brokers simplify the job of choosing a good term life policy.

The benefits of consulting term life insurance brokers

The main benefit of approaching a broker is that you can find a policy that is apt for your needs. You save a lot of time and don’t have to go without insurance for long. Since brokers help you out with filling and submitting application forms, the entire process becomes very easy for you. Here are some more benefits.

  • Strong insights into term life insurance policies offered by various insurance companies. You can make the best choice and buy an affordable policy
  • Expert advice on different term cover policies depending on your assets, evaluating risks and taking long term benefits into account
  • Advise on several aspects of term life insurance that you might not be aware of
  • Helping you obtain optimum cover, neither dangerously low nor unnecessarily high
  • Obtain a complete breakdown of different policies including broker commissions, fees, possible penalties in certain circumstances, cumulative costs of coverage and other terms and conditions
  • Understand pros and cons of different policies

The thing to understand here is that term life insurance brokers work on your side rather than an insurance company’s side. So, you get unbiased advice and recommendation regarding policies offered by different companies.

Should you go to a broker?

There are no disadvantages of consulting a broker. However, going to term life insurance brokers can be a big mistake if they are not adequately qualified and experienced. You need to ascertain their qualifications, experience and specialized area of expertise.

Here are some of the qualifications and certifications that you must check out. An expert broker has one of the following degrees.

  • CLU: It stands for Chartered Life Underwriter and is considered to be the highest educational degree than a broker can get in America. The course requires rigorous course work and strong work experience
  • CFP: CFP stands for Certified Financial Planner.  Brokers need to pass an examination spanning ten hours. The exam is conducted by the Certified Financial Planner Board of Standards. To maintain their expertise, brokers should continue education and attend 30 hours of classes once in two years
  • ChFC: Becoming a Chartered Financial Consultant requires several years of experience and the brokers must have studied courses offered by The American College. This is also a very prestigious qualification for a broker

Besides these, some of the other most desirable qualifications are Registered Principal (RP), Registered Representative (RR) and Certified Funds Specialist (CFS).

If you are a retiree, you should seek term life insurance brokers who are specialized to handle policies of retirees. Some of the qualifications you should look for are Chartered Retirement Planning Counselor (RPC), Certified Retirement Financial Advisor (CRFA), Personal Retirement Planning Specialist (PRPS), Certified Senior Advisor (CSA) and Certified Retirement Counselor (CRC).

If you go to an expert and experienced financial advisor or broker, the time and money that you spend on them are worth it.