Ed Hinerman On Life Insurance

How important is it to have a home town life insurance agent?

My customers don’t see it as important at all. So, let’s look at the pros and cons of a local versus, say a multi state or even nationally licensed agent.

 With a home town agent you can shake their hand or beat them with a baseball bat, whatever the occasion might call for,  with no driving or flying expense. Right there is where the pros end for the local agent.

 As for the cons! A home town agent serves a comparitively small population and therefore does not do the volume it takes to know the products and the underwriters that will approve the products. Because they don’t know the underwriters and very often don’t have the computer software or staff needed, they tend to be slower at providing life insurance quotes and getting insurance approved.

 A home town agent is less likely to be there when you call with a question, less likely to return a call in a timely manner and (this is very important), less likely to stay in business as the majority of life insurance sales is increasingly done on the internet and with nationally licensed agents.

 A home town agent cannot service your needs if you should happen to move. And lastly, in order to survive, most home town agents either have to become captive agents or diversify to a large number of products. If they are captive they can only represent one company and therefore cannot be objective in providing a product for your situation. If they diversify, they simply cannot be expected to know all the nuances of each particular industry or product .

 In short, it is highly unlikely that you will get a better product, price or service with a home town agent. So, unless you want to shake their hand or beat on them, compare before you buy.

Add comment January 24th, 2007

Life insurance for private pilots!

Most of the private pilots in the US have had some experience with the effect their hobby or avocation has on their life insurance rates. Insurance companies generally don’t look favorably on private aviation and the insurance quotes that most companies and agents provide reflect that.

 There are a few companies out there that offer fair, reasonable rates for term insurance and universal life as long as the pilot meets threshholds. These threshholds reward those who are experienced and fly enough to maintain their proficiency. It’s important when a pilot chooses an agent, that they question that agents’ experience and proficiency in finding competitive rates.

Add comment January 24th, 2007

Term insurance versus universal life!

The question is how to decide which product is appropriate for your family protection.

A simple rule of thumb would go something like this. If you can determine (approximately) the point in the future when you won’t need the coverage then you have a term insurance need. An example would be if you have an eight year old child. That translates into a 15 year term insurance need. I always recommend you carry coverage for the protection of your children until that age when they could have at least one college degree under their belt.

If the need is one that never goes away, whether as simple as final expenses or as complicated as estate protection, the universal life is the appropriate product. You want something that is guaranteed to still be in force when it’s needed. Always insist that your universal life policy is guaranteed for life.

Add comment January 24th, 2007