Working with a life insurance agent.

What does a life insurance agent do?

A life insurance agent is a licensed professional who can make sure you get the right coverage for your needs. Since life insurance is not a one-size-fits–all purchase, having an expert by your side will make it easier to compare policies, review pricing, and determine the exact amount of protection you need. In short, your agent is a powerful resource—one who will be there to answer any questions, guide you through the process, and help you make the best possible decision.

Understanding the role of a life insurance agent

We know that buying life insurance can sometimes be confusing—but we also know how important this decision is to your family and future. That’s where a licensed agent comes in. These knowledgeable professionals will walk you, step by step, through the process and make sure you are completely confident in the coverage you choose.

The benefits of working with a life insurance agent

At New York Life, our agents offer a host of protection-first solutions like life insurance. But more than that, they are highly trained financial professionals who provide holistic advice and guidance that you can tap into for the rest of your life. And because New York Life is a Fortune 100 company, our agents have all the tools and resources to needed to assess your financial situation and create customized solutions that meet your goals:

• A life insurance benefit can give your loved ones peace-of-mind and financial protection
• Replace your income and preserve your lifestyle if you become ill or disabled
• Save for college, retirement, and other important event
• Build long-term wealth and protect your assets
• Prepare for the high cost of long-term care
• Create a tax-efficient estate and wealth transfer strategy

Do I need an agent to buy life insurance?

Not necessarily—there are ways to buy life insurance without an agent. But wherever you are on your financial journey, a life insurance professional can often help you go further. Even if you have identified a policy that will work well for you, it’s smart to consult an agent just to make sure you haven’t overlooked anything and that the policy aligns with your financial goals.

Alternatives to buying life insurance without an agent

While it’s generally best to work with an agent, there are other ways to get life insurance coverage.

Your employer: One of the most common places to get life insurance is through your employer. In most cases, coverage is offered as part of a group plan—so your options may be limited, and you will most likely lose coverage if you change jobs.

Professional and membership associations: Many not-for-profit organizations, such as AARP and the American Medical Association (AMA), also offer group life insurance plans for their members.

Life Insurance brokers: A life insurance broker is a kind of go-between who can reach out to multiple insurance companies to see who can provide the coverage you need.

Direct from the insurer: Some insurance companies let you purchase coverage over the phone, through their website, or even by mail. Here again, your choices may be limited, and you may have to schedule lab tests or answer a few health questions to qualify.

Questions to ask a life insurance agent

While everyone will have different questions about their coverage, here are a few common topics that can make it easier to compare policies and make the best possible decision:

1. Does the policy provide living benefits?

People often think that life insurance provides only a death benefit, and are often surprised to learn that there are policies that have living benefits that the insured can use while still living.

2. How does the insurance company determine the premiums for each policy?

This is the amount you pay for life insurance, and the insurance company determines the premiums based on various underwriting factors like your age, health, lifestyle, and coverage choice.

3. Will my premiums change over time?

Some policies offer guaranteed premiums that are locked in for the life of your coverage, while others may increase over time.

4. What happens if my needs or circumstances change?

If your circumstances change in the future, you may want to adjust your coverage. You can regularly review your policy with an agent and discuss your options to make sure your coverage continues to meet your needs.

5. How long does it take to get approved—and when will my coverage begin?

While every case is different, your agent should be able to give you a reasonably accurate estimate of how long it will take for your application to go through underwriting. You may also want to see if your policy has a waiting period, or if your coverage starts as soon you are approved.

6. How does the claims process work?

Discussing the claims process is important, because you and your loved ones need to know the steps involved in making a claim when you pass away.

7. How dependable is the insurance company?

Learning about the financial stability of an insurance company is important because it determines the company’s ability to pay out death benefits. You can check New York Life’s financial strength and compare it with the financial strength of other insurance companies by examining the ratings of U.S. insurance companies by the major credit-rating agencies: A.M. Best, Fitch, Moody’s Investors Service, and Standard & Poor’s.

Of course, you will probably have other questions as well, so you may want to bring a list with you to your meeting so that you can make sure everything gets covered.

How to know if the life insurance agent is credible

In many cases, the credibility of a life insurance agent depends greatly on the company they represent. While all agents are required to take hours of coursework and pass a state-administered licensing exam, some companies have stricter standards and require more training than others. That’s why it’s often best to work with a New York Life insurance agent or one from an equally reputable company.

How do you buy life insurance from an agent?

In many ways, buying life insurance from an agent is one of the easiest ways to secure coverage. That’s because you will receive expert guidance and support through every step of the journey.

Ways that an agent can help with your purchase

Addressing your goals and needs: When you meet with an agent, don’t be surprised if they ask a lot of questions. In addition to personal details—such as age, marital status, and occupation—the agent will want to hear about your finances, goals for the future (buying a home, paying for college), and if you have savings, investments, or other assets that your loved ones can count on. This information helps create a clear picture of your insurance needs, so that the agent can recommend a customized solution.

Completing the application: Once you’ve selected a policy, your agent will ask you to fill out an application. While it should be relatively straightforward, you can always contact your agent if you have questions or get stuck along the way. When finished, you may want to review the application with your agent and make sure everything is correct before submitting it for underwriting.

Reviewing your policy and premiums: If you’re approved for coverage, you’ll be asked to sign and approve the proposed policy. Since this is a legally binding contract between you and the insurance company, you should look it over carefully and ask your agent about anything you don’t understand. Also, be sure to review the price quote you receive and decide if you want to pay your premiums monthly or annually. If the quote wasn’t what you expected, your agent may be able to come up with some alternative solutions.

Adjusting your coverage: Buying a policy is just the beginning of a partnership between you and your agent. You can check in with each other periodically to review any changes in your life (like marriage or the birth of a child) and see if you need to add or adjust your coverage. You can also ask your agent to weigh in on other financial decisions you may be thinking about. Your agent is a great source of knowledge and will be more than happy to help you make the best possible choices.

Working with a life insurance agent FAQs

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