Having a life insurance agent there to help decide what type of life insurance is a good fit throughout different stages of life can be very helpful. But sometimes the original agent is no longer needed and buying online just makes more sense.
Fox Business recently reported that it is very common to outgrow an insurance agent. Some people develop more unique insurance needs or circumstances create more complex financial affairs that need to be handled. In these situations it may be necessary to have a financial planner re-evaluate someone's portfolio including their life insurance policy, to make sure everything meets the goals of the client.
Nancy Chu, a real estate professional with Keller Williams, said agents often come with added costs because they scour the insurance market for the best coverage at an affordable price. But if the agent is not equipped with the skills needed to handle all the financial affairs, or their services are not worth the extra fee, then they may be causing extra stress to the client.
Online insurance options also make insurance agents less necessary, the news source reported. Consumers can select, compare and purchase life insurance quotes without leaving their living rooms. Most quote websites will offer prices from many different providers, ensuring consumers are getting a variety of options without the added commission given to the agent.
"You don't want someone with a stake in getting a commission helping you make decisions about insurance," Robert Hunter, director of insurance at the Consumer Federation of America, told the news source.
And a recent survey from Saybrus Partners found that many financial advisers actually overlook incorporating life insurance policies into the financial plans of their clients. According to the research, less than half of American adults have spoken with their adviser about adding life insurance to their plan, while 47 percent have life insurance but their advisers have never reviewed their policies with them.