Independent And Dependent Agents

Have you ever thought why you have always been able to be quoted prices on multiple companies?  Why some people you talk to can’t sell more than one company?  Well I am here to teach you that there are 2 types of sales agents out there.  Not including whether they are ethical or if they know what they are doing those can be weeded out and fixed.  What I am talking about is the independent and dependent agents.

Dependent Agent

The dependent agent is one who may be able to quote you many companies but would only be able to sell you one specific company.  This means that they are tied to a company.  This has both good and bad for these sales agents.  Those that are dependent on one company have better and more access to this one company.  They may have exclusive rights to sell certain products that are not available to those that aren’t.  That is why these sales agents may be more proficient in what they are trying to sell you.  Which is good to be knowledgeable when selling.

Another advantage for the sales agents that are dependent is that they are able to have additional bonuses. The company they represent want their product sold so they will go to additional lengths to keep those agents that sell only their product.  They will offer additional bonuses, trips and even more on each product sold.

One of the main setbacks of a dependent sales agent is that they can only sell the one product so if there may be a comparable product that a client would want the agent would not be able to sell that product.  This is where the independent agent fits into the picture.

Independent Agent

The independent sales agent has their hands in many companies and has tools to be able to quote from.  As with the dependent agent there are goods and bads for an independent agent

For the independent agent the greatest good and greatest bad come from the same source.  The ability to have access to many products.  The good is just that, but the bad comes from the lack of knowledge about each and every product.  What most sales agents in this case will do is learn from each provider what the best product is that they can offer as agents and will add that to their knowledge.

Another good of a independent sales agent is that they do have access to many different products.  They are normally able to customize the product to your needs.  The independent agent tends to have more of a needs based approach with their clients.

Each of these agents strive for the best for their clients.  With all outside factors being equal you should feel comfortable in either situation.  Let me know your thoughts on dependent and independent agents by commenting below.

 

Life Insurance Part 1 The Top 5 Myths Of Term Insurance

Term life insurance has many advantages. But understanding term life insurance and its benefits means sifting through the myths surrounding it; and there are many myths about it. These myths and misconceptions can result in too little coverage causing financial hardship for families suffering the loss of a loved one.

To avoid this from happening to you, we've taken a look at the most common misconceptions about life insurance to set the record straight. In this article we will explore myths around buying term and in other parts to this series we will explore permanent.

Myth #1: I don't work outside the home so I don't need life insurance.

False! Just because there's no paycheck to replace, doesn't mean life insurance is unnecessary. A policy that provides coverage for a stay-at-home parent isn’t so much about the money they bring into the household, but instead about the money they keep in the household.

In fact, have you ever considered how much it would cost to pay for childcare and housekeeping in the absence of a stay-at-home parent? Don’t underestimate how much this would require, child care is expensive and is a growing cost.

Myth #2: I'm young so odds are I won't need life insurance.

Some people are gamblers by nature and choose to take their chances by skipping out on life insurance completely. Although it is unlikely you'll die during your working years, you're not insuring for what's likely to happen but instead, for the worst-case scenario.

That's why term life is inexpensive for young, healthy people. Buying it now means you'll be providing financial security without spending a lot of money for it.

For example, online quotes show that a $250,000 10-year term policy for:

• a healthy 35-year old woman costs as little as $165 a year
• a healthy 35-year old man costs as little as $195 a year

What's more you may even be eligible for preferred life rates that mean the annual premiums are even less! Preferred rates are lower premiums - for the same coverage - offered by an insurer based on your health. The good news is that eligibility for preferred rates is common and could save you up to 30 per cent off the standard rate.

Myth #3: If it's really so cheap there must be a catch.

There's no catch to term life insurance. Your basic term life policy will offer you coverage so long as you pay your premium. You buy term insurance coverage for the duration of time you'll need life insurance, whether that's until the kids are out of school or until your mortgage is paid off. Learning the difference between term and permanent is in our other article "Life Insurance Basics".

Plus, your premiums are fixed for the length of the term. They won't increase even if the status of your health changes.

Myth #4: I don't need life insurance once my children are self-supporting and my mortgage is paid off.

Everybody's needs vary. But how would your spouse manage daily living expenses without your help? And what if your spouse outlived you by 10, even 20 years?

Even if your children are no longer living at home and you no longer have large debts, like a mortgage, there still are questions you should consider before deciding that life insurance is unneeded.

Myth #5: I have life insurance through my job. I don't need any more insurance coverage.

False. The truth is your life insurance coverage through your work may not be protecting yourself and your loved ones as much as you think. Review how much your employer-paid insurance provides and calculate whether this is enough to keep your family comfortable through the difficult times if you're not around.

What's more, when you leave your job for any reason, including retirement, your coverage usually stops.

Myth #6: It's such a hassle to get life insurance.

Thanks to the Internet, getting quotes is fast and easy. There are a number of online life quote services and usually, all you have to do is answer a few simple questions to get quotes. Sometimes, you can even buy a policy online.

Final Fact:

From the time you marry, buy your first home, start a family and enjoy retirement, having life insurance means you and your family have the security knowing you can reach the long-term financial goals you have set out.

Life policies provide you with customized coverage for your family's needs. Comparing quotes on the Internet can help you find affordable life insurance that will protect you and your family in the years to come.

Next week in part 2 we will talk about myths revolving around permanent insurance in "Life Insurance Myths Part 2".

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