SML Planning Minute

Episode 300 – Anyone who has ever tried to call a large bank or medical practice knows one simple truth: It’s becoming increasingly difficult to talk to a real person. But that’s just what so many of us need. The case for interaction with a real people is especially important when it comes to life insurance.

Hello this is Bill Rainaldi, with another edition of Security Mutual’s SML Planning Minute. In today’s episode, our 300th, why you need a real person to help with your life insurance needs.

Every September, Life Happens sponsors Life Insurance Awareness Month, a time to call attention to the importance of life insurance planning.  As September comes to a close, we thought we would take a look at how important it is to have a real person to talk to when you make this important decision.

Anyone who has ever tried to call a large bank or medical practice knows one simple truth: It is becoming increasingly difficult to talk to an actual human being. But that’s exactly what so many of us need.

The case for interaction with a real person is especially important when it comes to life insurance. Some people are convinced—often mistakenly—that anything can be cheaper if you buy it online. But are you really getting your money’s worth? Life insurance can be complicated. When it comes to life insurance purchases, being educated about what you’re buying can be difficult especially without proper guidance.

In a recent article in Think Advisor magazine, author Bryce Sanders gives us a few good reasons why it’s usually better to deal with an actual human being when looking at life insurance.[1] Here they are in order.

How much coverage do you need? What type of policy? Who’s going to own it? Should you add any special riders such as chronic illness or waiver of premium riders? There are a lot of decisions you need to make. The more-affordable policy may not be the best policy in the long run. A real-life insurance agent can help you figure out exactly what you may need, help explain some of the terms you may not understand and help put your mind at ease. An agent can listen to your concerns, answer your questions, and recommend appropriate alternatives.

You need to file a claim. Or change a beneficiary. Or quickly make a missed payment before it’s too late. Your agent knows where to go, what forms you need, how to complete the paperwork. Can you get that so easily if you buy a policy online?

As Sanders points out, there are quite a few online-only companies with serious sounding names. Some may be located offshore without you even realizing it. Some may mimic the names of other industry giants. Is it even a real company? A reputable professional agent only deals with reputable companies.

Need help with college funding, retirement planning or estate planning? Do you have concerns about disability insurance or even about your business insurance? Chances are your agent can provide you with so much more than just life insurance. Your Security Mutual Life Insurance Advisor is there to help. Your SML insurance advisor will assemble your team and coordinate with your attorney and tax professional to review your situation and to determine the estate plan that will best suite your needs and objectives.

Do you trust the person you’re about to do business with? It’s a lot easier to evaluate when you’ve actually met them.

Buying online tends to be one and done, but life insurance doesn’t always work that way. The convenience of online purchases can be efficient and save time. Life insurance differs from other purchases. You may need more in the future due to a growing family, inflation, tax law changes, or many other reasons. Or maybe you want your term coverage to become permanent. If your agent made things easier for you the first time, wouldn’t you want to deal with them again?

The price of a policy is important. But it’s nowhere near the only thing. How about policyholder service? Need to make a simple change, like a change of address? Simple for some companies, but not for all. Your agent should know which companies are easy to deal with, or at least, how to get to the right people if they’re not.

And that’s not all. We’ll throw in one more reason to deal with a live agent: Underwriting. Online companies like to advertise their cheapest rates. But they might not tell you how difficult it is to get them. And what if you don’t qualify? The cheapest company may end up being closer to the most expensive. A real person can work directly with the insurance company to make sure you’re getting the best deal you can for your health situation, even if that means finding a different company.

The convenience of online shopping can add efficiency and save time and money when purchasing many consumable goods or simple electronic devices. Buying life insurance to protect your family or business differs from these transactions. When you’re buying life insurance, make sure you understand what you’re buying, who you’re buying it from and how it helps meet your needs. Consider working with a professional and reputable life insurance agent from Security Mutual Life. You’ll be glad you did!

[1] Sanders, Bryce. “8 Reasons Why Clients Need a Live Insurance Agent.” ThinkAdvisor.com. https://www.thinkadvisor.com/2024/04/17/8-reasons-why-clients-need-a-live-insurance-agent/?printer-friendly (accessed Sept. 6, 2024)

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