When you are considering buying life insurance, it is important to choose an agent or broker who can help you. Buying life insurance can be complicated or confusing. A good agent or broker is the key to buying the right amount and the right type of policy at a good rate. You should choose the one that:
Understands your financial situation, including your view of your personal status (i.e. your age, marital status, dependents, etc.) .
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You can easily understand the issues, options and planned use of life insurance in your financial program
Provides you with a personalized written document that
Records the facts of your current financial and personal situation and
-Describes the features of life insurance and how it fits your situation
Doesn’t pressure you to make decisions, but works with you until you’re ready and confident you’re doing what’s best for you
Willing to review with you periodically—perhaps every three years or so—whether the product is a good fit for your needs and circumstances
Licensed by your state insurance department.
If you don’t have an agent or broker who fits this description, ask your attorney, accountant, friends, relatives, and business associates the names of insurance agents or brokers with excellent reputations. You can also connect with the nearly 70,000 members of the National Association of Insurance and Financial Advisors (NAIFA), who subscribe to the organization’s code of conduct.
An agent or broker who holds one or more professional financial services designations has demonstrated a commitment to specialized education in the field. Designations you may see include the following:
insurance agent designation
An agent or broker who holds one or more professional financial services designations has demonstrated a commitment to specialized education in the field.
Designation Designation Full Name Issuing Institute Web Site of the Institute
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ChFC Chartered Life Underwriter
The American College of Chartered Financial Advisor www.theamericancollege.edu
CFP Certified Financial Planner Certified Financial Planner Standards Board, Inc. www.cfp.net
RP Registered Representative or Registered Principal National Association of Securities Dealers, Inc www.nasd.com
compensation issue
Like everyone else, agents and brokers get paid for their services, enriched by their education and experience. Most agents and brokers are paid by commission, but some operate on a fee basis. Typically, the largest portion of compensation is paid at the time you purchase the annuity, as most of the agent’s or broker’s work is done at or just before that time. Like any professional service, you should understand how your agent or broker will be compensated and how this may affect a buy recommendation.
Bottom-line? The best way to protect yourself is to make sure you understand what you are buying and the nature of the product limitations, penalties or fees if you choose to leave the policy.
source:iii.org only information porpus.