Your Needs May Be Different than Your Agent’s Interests
Make sure the life insurance policy your agent suggests is the right decision for you and your family.
Insurance agents are paid based on product sales. When they sell policies, they earn a commission. Some products pay a higher commission than others. Term life insurance pays a relatively low commission since it is the lowest cost life insurance option and provides the biggest bang for your insurance premium dollars.
As a result, your insurance agent will make less money if you take out a term life insurance policy. So, while other types of life insurance can make good financial sense, make sure you understand the logic behind those products and are sure, for example, a whole life policy is right for you. Your agent needs to make a living too – and at times his or her interests may be different than yours.