Life insurance policy is not an easy to find that also meets your needs. For finding out the best deal you can hire an agent. The reason for this that the life insurance process is not that simple and it can confuse you whereby you end up paying a lot in extra money. The agents on the other hand should be picked very carefully. They are of great help but you pay for their commission and you should get what you want to buy not what they want to give you. You may sign up a policy with an agent where both of you are happy but later you will find out that you may have bought a Mercedes type life insurance rather then a ford type insurance that could have worked very well for you.
The agent should have the following
The agent with whom you want to do business with should have the following characteristics. He should be able to understand you and your situation along with your finances, income, tax brackets, assets, liabilities and personal things such as dependants, age, health etc. He should be able to explain all the terms, options and options available to you. He should also be able to provide all written documents involved in the insurance policy. He should work with you to find the best policy option rather then forcing you in accepting one. The agent must also be registered with the states insurance department and has license.
Ask each agent these questions
Ask the agent some questions so that you can easily compare between the policies he offers. Ask what the premiums are composed of the present value by using a 4.5% discount or inflation. If they disagree with 4.5% and use a lower number then the insurance is expensive. What will be the cash value that you get for paying the premium?
What to Do and What Not to
The above information will allow you to carefully compare different brokers and agents and the polices as well. Inflation occurs and it can really make things different. After a 30 year period with 4.5% inflation an amount of $500,000 is just like $133,000 today. Use your own rates and get the value that best suits your needs and save you the most. Not a deal in which the agent is happier. Don't agree in upgrading any policies because you if you move your whole life to another then you will loose cash. The agent will get the money in the form of commissions and you will be at a loss.
The Compensation Issue
The compensation of the agents is paid as either a commission or some may charge fees. The agent will take most of his commission at the time when you have purchased your annuity. The reason for it is that most of the agent's work is at or just before the annuity is purchased.
