Life insurance is a major financial commitment.
Just as you seek out expert advisors for other financial needs – bankers, stockbrokers, and the like – your choice of a life insurance agent is a key decision.
Your life insurance agent plays an important role in the financial planning process. He or she:
- Helps you assess your life insurance needs through a financial needs analysis.
- Arranges for the purchase of a policy.
- Provides on-going service, such as beneficiary changes, review and updating of
life insurance policies.
- Assists the beneficiary in making the claim.
- Assists you with other financial planning needs (disability insurance, retirement
planning, estate planning).
Agents are licensed and regulated by the provincial government to sell and service life insurance. They may also sell disability insurance, RRSPs, group insurance and segregated funds. Those who also sell mutual funds or other financial services like stocks or property and casualty insurance require a separate license. Not all agents handle every product.
Most agents are paid a commission by the insurance company issuing the product.