When it comes to choosing the right term life insurance company, or agency that can provide the right products and services to you at rates that you can handle, there are some important considerations that you absolutely must be willing to make before you settle down on any one policy.
Term Life Insurance Agent Credentials
The first and one of the most important things that you need to keep in mind when it comes to term life insurance, is that every person who sells life insurance in your state must be licensed properly in the state they are practicing in. Before you decide to do business with a specific life insurance agent, you need to find out if they have all of the proper licenses and credentials to be selling you insurance. You would probably be surprised if you knew how many insurance agents were out there making sales without obtaining the right credentials or renewing their licenses regularly.
What many people looking to life insurance are not aware of is that in order for an insurance salesperson to operate, they must undergo a series of courses to keep their licenses up to date. An insurance agent without a license, or one who does not go through required training and schooling, is not going to be a safe and effective insurance agent to work with. If you end up dealing with a shady insurance agent, you may find yourself with an insurance plan that amounts to nothing when it really matters.
There are also insurance agents that work out of their own homes. While these home based agents may have their licenses and proper credentials, this is another issue worth looking into when it comes to choosing the right no medical term life insurance agent. Be prepared to ask questions of any prospective agent, and if they appear not to be genuine in nature, properly licensed, and certified by the state that you are purchasing insurance in, it is time for you to simply move on.
Before doing business with a specific term life insurance agent, you should check with the insurance regulator in your state to see if he or she has ever had a complaint lodged against his or her insurance agency. Checking out the credentials for each and every potential insurance agent is another important step. The following five insurance agency credentials are the most common. If your prospective agent does not meet these credentials, or cannot readily prove that they do, it may be best to look elsewhere for your insurance policy.
CFP — Certified Financial Planner
CLU — Chartered Life Underwriter
ChFC — Chartered Financial Consultant
CPA — Certified Public Accountant
PFS — Personal Financial Specialist
Ensuring that your term life insurance company or agent has the right licenses, credentials and history is all about protecting yourself. It would be terrible to find out that you have been ripped off, or that your insurance policy is not valid because your insurance agent was not properly licensed at the time of your sale. Life insurance is serious business, and the only way to protect yourself is to make sure that you are dealing with legitimate insurance agencies when you purchase your policies.
By Michael Williams