Why you should use an independent life insurance agent!

Let’s start with an analogy. Suppose you have just made a decision that it is time to buy a car and that, like me, you live in a thriving metropolis of 6000 people. There are two car dealerships, neither of whom have anything close to a large selection, and because we are in the boonies, neither offer what could be called competitive prices. Two hours away is a city of 600,000 with 20 or 30 car dealerships, fiercely competitive, and with every conceivable choice in stock.

Now I am a home town supportive kind of guy, but when it comes to a purchase as big and important as a car, I shop it. I find out the best thing available to me here at home and then I drive two hours and compare. Large inventory and better prices wins every time.

An independent life insurance agent is all about large inventory, more choices and better prices. Their opposite, the captive agent, writes for one company. Companies that have captive agents are historically overpriced and the agent knows that, but can’t steer you to a better price or they’ll starve. If they try to help you out by writing a policy that is better for you through another company, the may lose their job.

We’ve talked about all the different criteria that companies use to underwrite policies, like build, cholesterol level, hypertension, asthma, diabetes, and family history for example. With a captive agent you are stuck with one set of criteria. With an independent life insurance agent you may be working with as much as 40-50 different sets of criteria. In a previous blog I showed how the difference in underwriting between one company and another can easily mean a difference of 60%-70% in price.

A captive agent is generally licensed in one state. If you do business with them and move to another state, you become what’s known in the industry as an orphan. Sometimes you will be called by a new agent in your new state that is also a captive agent. Sometimes you never hear from anyone again. Most independent agents are licensed at least in multiple states. More and more you will find agents that are licensed in all states, so they can literally service your policy wherever you live.

So, why do I harp on the need to use an independent life insurance agent. Life insurance is an important purchase. We are talking about benefits that could affect your family’s future in a huge way. An independent agent can offer life insurance quotes that exactly meet your needs, at prices that cannot be met by captive agents. An independent agent can offer a wider variety of products, whether you are looking for term insurance, universal life or whole life,  with better guarantees and benefits.

The question should really be why “wouldn’t” you use an independent life insurance agent.

Life insurance for diabetics!

Because of all of the health risks associated with poorly controlled type 1 diabetes and type 2 diabetes, life insurance underwriters take a cautious approach. What the underwriters are looking for can be summed up in three words. Control! Control! Control!

While the risks are huge when a diabetic has poor control, the mortality risk drops dramatically when diabetes and associated health issues such as build (weight) and hypertension are watched carefully and controlled and monitored prudently.

If you are diabetic and looking for the best possible life nsurance quote, just a few guidelines. First, use an independent life insurance agent. Armed with your specific information they can shop for you across a wide range of companies. Since companies change underwriting guidelines, often without any warning or even any notice to life insurance agents, shopping your case allows an agent to find the best rate and lock it in.

Second, know your lab results and your medications. Life insurance underwriters really don’t care if your last glucose reading was 104. Every time you see the doctor they will test your A1C or hbA1C. This gives a long term (3 month) look at your glucose averages. I won’t pretend to know how it works, but it will tell your doctor and the underwriter if that 104 is normal or if you just caught a good reading. For instance, an A1C reading of 7.0 would mean your glucose average is around 130. That means for every time your glucose was around 100, it spent an equal amount of time around 160. Not bad control, but certainly not as good as if your average glucose was 104, which would equate to an A1C of around 5.9.

Know your average blood pressure. The more information an agent and an underwriter have, the better the job they can do for you. And this may seem silly, but know your weight. Don’t guess at it. For those of us who have weighed more than we should have at some point, we have a tendency to estimate. Being off by 10, 15 or 20 pounds can make a big difference in the overall picture and the immediate accuracy of your life insurance quote.

Lastly, if you have been diabetic for a while and have become bored with the details, now is the time to get back in touch. Find out what your last 3 A1C readings were. On your last urinalysis was there any protein in the urine. Find out if there has been any significant changes in your blood pressure readings in the past few years. Know what your cholesterol, hdl and ldl readings are. And get on an accurate scale and know what your weight is. The knowledge you gain will help your independent life insurance agent do the best job for you. They will also benefit you in monitoring your health.

Life insurance for diabetics can be very affordable if you follow the right steps and are taking care of yourself.

Warning! Warning!

I’ve often wished my blogs would be read by everyone. I’m pretty sure that doesn’t happen, but for this one I am lowering my wish expectations. I am only hoping that everyone who has life insurance or is considering buying a life insurance policy will listen up.

If you have a term insurance policy, or for that matter, universal life or whole life, pull it out (if you can find it), dust it off, and read it. The following stats aren’t based on any kind of scientific survey. I wouldn’t even know how to do one,  but based on what I hear from my new customers, most don’t remember what they have for life insurance. That is to say that only about half even remember the amount of insurance and substantially more than that can’t remember how long the life insurance policy is guaranteed to have level premiums. And, while not a large percentage, many can’t remember where their policy is. That makes it kind of unlikely that their family will know where the policy is, or even if one existed, should they pass away unexpectedly.

The number one reason that these problems exist, is the lack of a good, preferably independent life insurance agent that worked with you from the time you got your life insurance quote to now. A good agent is going to educate their client on what they have at the time of sale. A good agent will make sure the client understands all of the guarantees in a policy from the level premium, the conversion options and the accelerated death benefit provision. A good agent is going to instruct a client on what to do with the policy and who to inform about the life insurance, so that in the event of a death, the family knows what you have and who to call. A good agent is going to stay in touch and keep reminding their client about the benefits they purchased and keep them informed of any changes that might be prudent.

Test yourself. Without looking, write down the amounts and term lengths of any insurance policies you have. Write down your best guess as to how many years are left before the life insurance rates go up. Write down the beneficary designations just as you remember them. Ask your spouse, family, or business partner if they know what you have and who to call if you were to die.  Now check it against reality, provided you can find the policies.

When you read your policies, if there is anything you don’t understand, call the agent who sold it to you (if they are still in business) and insist on education and clarification. If they happen to not be in business anymore, go onliine or look through your phone book and find an independent agent who can help you understand what you have. Whover said “ignorance is bliss” obviously wasn’t dependent on life insurance benefits.

Test yourself today. Waiting is an option that could severely damage your family’s future.