Do I need an agent to purchase insurance?

There is a common misconception that purchasing mortgage protection insurance is cheaper if you buy "direct" from the insurance company. The client thinks that if they go “direct” they will cut out the commissions that are paid to an agent. They can get a better premium and save a lot of money. This is simply not true.

The facts are… that you will pay the same premium no matter where you purchase mortgage protection insurance.

For example, let's say a 40-year-old female who does not smoke is looking to purchase a mortgage protection policy for $500,000 on a 20-year term with ABC Insurance Company. This customer will pay the same premium no matter how they purchase it. To put it plainly, whether you purchase a policy online, "direct" or with an insurance agent, the premiums are the same.

So what is the best way to purchase mortgage protection?

We believe the best way is through an actual agent.

An agent can help you…

• Choose the best company

• Choose the right policy

• Help you with forms and application

• Save a lot of time applying through different companies and policies

In order to purchase mortgage protection insurance, you must first qualify. This would mean a short health questionnaire and application. If you are healthy, then you might be able to qualify for mortgage protection without any medical exam. An agent can walk you through this and advise you on which places require medical exams and which ones do not.

A professional, experienced agent knows the best policies and companies for your particular situation. Not all companies are the same. Some are more aggressive with certain pre-existing conditions and more conservative on others.

An agent can advise you on which company is going to give you the best premium for your situation.

Let us Illustrate…

Lucas wants to purchase a plan to protect his $260,000 mortgage. He is a little overweight and has high blood pressure. He goes online and types in his basic information and receives a list of the top 5 premiums from the different insurance companies.

• ABC Insurance company is $30 a month

• DEF Insurance company is $32 a month

• LMNOP Insurance company is $32 a month

• RST Insurance company is $34 a month

• XYZ Insurance company is $39 a month

Obviously Lucas wants the best premium so he applies for ABC insurance company. He fills out the application, takes a blood and urine exam, answers some medical questions and waits for the company to make an offer.

4 weeks later ABC insurance company comes back and says the can insure Lucas but because of he his overweight and has HBP the new premium is going to be $41 a month.

Now he has a choice. Does he apply for company DEF or LMNOP? What if they do the same thing? What if he has to wait 3-4 weeks to get an offer for each one? So Lucas decides to take the offer from ABC company and pays the $41 a month.

Alternatively Lucas could have reached out to EZ Mortgage Protection. Their experienced agents would’ve known right away that companies ABC and LMNOP would offer a higher rating for his conditions that he would be best applying for company DEF. With the help of the agent he has to do a lot less work. 2 weeks later Lucas would receive his offer as applied for at $32 a month. This saves him over $100 a year and thousands of dollars over the life of the policy.

Remember, don't be fooled into thinking that an agent is going to cost you more money.

Literally, any price you can find online can also be found by an agent. But the agent has access to so many more resources than you do. There is no difference in price if you go with an agent or "direct" with the carrier.

An agent can also do all the dirty work for you. For most people, qualifying for mortgage protection is pretty streamlined. However, for others, additional paperwork may be needed, including medical records and answers to questions from the underwriters. An agent can help do all the leg work for you. And remember, this is for the same price you would pay if you handled it yourself.

If you would like to test the waters first with no sales pitch, no obligation, and no pressure, you can schedule a 10-minute FREE Consultation here with a licensed agent. This agent can answer any questions you might have. YOU can be in charge of the conversation. Click below and schedule a time that is best for you.