Life Insurance Agent

The people who sell life policies, and whether you need them at all.

A life insurance agent can be tied to one company, or give you the full range of products- be sure you get the advice you need. Equally, for term life policies, you may not need a life insurance agent at all- term policies are simple to understand, and plentiful on the high street and the internet.

Looking for a life assurance agent is a complicated business. For starters, you need to know that the word “Agent” is loaded with meaning. Agents are often representatives of only one company, and only qualified or authorised to give you details of that company’s products.

Brokers however are even more complicated- some advise on only one company’s policies, others are wholly independent, and a third group only advise on a certain range of products: there’s no excuse for not asking the minute you walk through the door what sort of outfit you’re dealing with!

But much more interesting is whether you need a life assurance agent at all. There has been a massive expansion in the number of companies offering term life insurance (the most basic form of life insurance, and very much like a motor insurance policy… but with higher stakes!) For term insurance, a quick look at internet sites like Moneynet, LifeSearch or MoneyExtra will bring up a whole host of options. Term insurance is relatively simple, it’s a straight insurance policy with no investment element, and you might get away without paying any (often hidden) commission to a broker. Everyone from Direct Line to Norwich Union can offer you term life insurance directly.

If however you want a whole of life policy, a unitised policy, an endowment policy, or anything else which involves investment (and serious planning), then don’t hesitate to find a life insurance agent: getting the right deal will be much better in the long run, even if you do pay a small commission to the intermediary.