LIFE INSURANCE - CHOOSING AN AGENT
How do I choose an agent?
Collect the names of several agents through recommendations from friends, family and other sources. The following are some questions you may want to ask a potential agent:
- Is the agent licensed in your state? -- All states require that agents be licensed to sell life insurance. In addition, agents who sell variable products must be regis-tered with the National Association of Securities Dealers and have additional state licenses.
- What company or companies does the agent represent? -- Does the agent have any professional designations? Professional designations include Chartered Life Underwriter (CLU) and Life Underwriting Training Council Fellow (LUTCF). Agents who also are financial planners may have designations, such as Chartered Financial Consultant (ChFC), Certified Financial Planner (CFP) or Member of The Registry of Financial Planning Practitioners.
- Is he or she a member of a professional association? -- The major association for agents is The National Association of Life Underwriters (NALU). Through NALU's local associations, agents can attend educational seminars and can stay on top of trends in the business. Similar training and services are provided to financial planners through the American Society of CLU & ChFC, the Institute of Certified Financial Planners (ICFP), and the International Association for Financial Planning (IAFP).
- What can I expect an agent to do for me? -- An agent should be willing and able to explain various policies and other insurance-related matters. Let your agent know what you expect from him or her. You should feel satisfied that the agent is listening to you and looking for ways to get you the right type and amount of insurance at an affordable price. If you are not comfortable with the agent, or you aren't convinced he or she is providing the service you want, find another agent.
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