How’s this for shock value? Life insurance agents get into the business to make money and there are times when how much money they are going to make may, just may, skew their recommendation on what product you should buy. No really! That can happen one of two ways. The life insurance agent can either recommend a product whose cost is higher than you need to spend (agents are paid on a percentage of the premium), or they can sell you something from a company that pays a higher commission rate than another. It may not be the best company for your needs, but it happens to be the best for their bank account.
I can honestly say that I’ve never done that (put me first) in life insurance sales. I just had a client, CEO of a company, call wanting a quote on a substantial amount of business life insurance. He only needed the life insurance policy for one year but had been getting quotes for six months building up to the time when he would need it in place, so I was coming in really late in the process and he had already received several quotes. I got the information needed to quote the life insurance for him and sent out a quote for the absolute best value for him, $17,000 a year better than the next company and a full $40,000 less than some quotes he received for this one year insurance policy. There was no hesitation on his part when he told me to send an application and set up an exam.
So, how could I save $17,000 a year for this client on his business life insurance? Why is it that no other life insurance agent jumped in with the company that I used, a large A+ rated brand name company. It isn’t like it was a hidden jewel that only I knew how to find. We all use the same quote engines on our computers to look up life insurance rates and available products so why, in six months, didn’t any other agent quote what I quoted and win the case like I did? One word. Compensation!! The company that I chose is historically not a company that pays high commission even on longer term products and on this one year policy the compensation is very low. The company is able to be super competitive with the one year life insurance product because they don’t pay the agent much at all.
Bottom line. But here’s the deal and it’s the way I’ve always quoted life insurance. If I come in second best I don’t make anything and if I come in as the best and obvious choice I make something. I’m not in this business to find the second best deal for my clients and as a result I make more sales than the average life insurance agent. I may leave some money on the table here and there because I don’t sell based on what I may make, but I make enough and have a reputation of always putting my clients first. If you think you may have been sold a product that was more life insurance agent friendly than client friendly, call or email me directly. My name is Ed Hinerman. Let’s talk.