I had a discussion with my Farmer’s Insurance agent the other day. I have my auto, homeowners and office insurance through him. He has great products and offers very good service. He called to ask me about life insurance prices.

You see, he is licensed to sell life insurance along with every other insurance product out there, but he openly admits to me that he knows very little about life insurance, and in this case, didn’t know if the price he was quoting a customer was competitive. This is true of all of the major auto and homeowners agencies such as Farmers, State Farm, Farm Bureau, American Family and, well, you know all of them I’m talking about.

The truth is that they all have life insurance products. The sad truth is that most of them know very little about the products and are therefore not in a position to give sound advice. And the sad frosting on the cake is that their products, almost without exception, are overpriced and poorly structured.

In the case of my Farmer’s agent, he had a client who is a 46 year old healthy client who is a smoker. He wanted $150,000 of 20 year term insurance and the Farmer’s product was going to be $107 per month. My Farmer’s agent had a feeling that was a bit steep and called for a second opinion. As an independent agent I was able to look through all of the companies and found the same product for $57 per month.

Bottom line. It pays to buy your insurance from an agent who specializes in the product you are buying. I would never attempt to sell auto and homeowners, even though for education purposes, I do carry the licenses for it. I don’t sell health insurance even though I am licensed to do that. For the sake of our clients I focus only on life insurance and work hard to be able to offer the best possible prices and service in that area.