MONEY MATTERS

3 Signs that It's Time to Break Up with Your Life Insurance Agent

by PETER COLIS

Trust and communication are key to any successful relationship, especially when it comes to managing your money. It’s a good idea to periodically reevaluate your relationship with your life insurance agent to make sure they’re prioritizing your needs over their profits.

Many people don’t trust life insurance agents, but the process has traditionally been so confusing, burdensome and slow, that people have long depended on them to get the coverage they need. So, how do you know when it’s time to reevaluate your relationship with your life insurance agent? Here are a few tell-tale signs that you’re ready to move on:

1.They don’t listen to you

Traditional life insurance agents work on commission – the higher the sell, the more they take home in their pocket. This commission-based model incentivizes agents to sell policies that will result in the largest profit, regardless if it’s the right coverage for you and your family. Your agent’s priority should be listening to your needs, wants and concerns about your financial security – if they don’t, it’s time to cut ties.

2.They withhold information

Life insurance, in its entirety, can be complicated to grasp, meaning sales agents have the upper hand from the get-go. This imbalance in the agent-buyer relationship can lead to misaligned incentives that often result in a lack of trust. You can prevent an agent from taking advantage of you by asking questions such as: Why do you think I need that much life insurance? Is a whole life insurance policy really the right fit for me and my family?

Your agent should listen to your needs and concerns – if they don’t, it’s time to cut ties.

3.They say you won’t find someone better

Not the case. Thanks to technology-driven innovation in the insurance industry, consumers now have more options than ever before. Digital insurance providers like Ethos use technology to simplify and expedite the entire life insurance process. With Ethos, everything is done online, the application process can take less than 10 minutes and 99 percent of applicants don’t require a medical exam. And all of this can be done without an agent while providing the same quality coverage.

Shopping for life insurance is complicated enough without having to worry if you’re being treated fairly. Luckily, consumers now have options that empower them to make more informed decisions about life insurance coverage. Whether you’re turning to other experts for advice – like a life insurance consultant or financial advisor – or seeking new insurance providers independent of commissioned sales agents, life insurance is an important part of your overall financial wellbeing.

Peter Colis is the CEO and Co-Founder of Ethos, a new kind of digital life insurance company which makes simple and ethical life insurance for families. Prior to Ethos, Peter was the CEO and Co-Founder of Ovid, a life insurance marketplace. Peter has an M.B.A. from Stanford Business School. For more information, please click here.