When to Listen to Your Insurance Agent Instead of the Financial Advisor

We’ve discussed before how insurance can be a financial asset. Given that fact, it’s not uncommon for your financial adviser to offer up advice on which insurance policy you should open. But what if their suggestion isn’t the same as your insurance agent?


If you find yourself in this situation it may be challenging to decide whose advice to take. Below are a few scenarios when it may be best to listen to your insurance agent instead of the financial adviser.

Complex Insurance Products

Dealing with complex insurance products such as universal life cash value life insurance can be tricky. There are a lot of little caveats, regulations and considerations. When you are in the market for a complex insurance product your financial adviser might not be as privy as the insurance agent on how everything works. It may be in your best interest to heed the advice of the agent.

Company Specific Questions

When you have questions about the insurance agent’s company or a company they work directly with, your financial adviser may not be the best person to turn to for answers. The insurance agent is a more direct source of information. The financial adviser is working from outside the company, which has its benefits, but whenever you need company specific information this outsider status might impede you from getting the best possible answers.

When the Agent is Highly Specialized

To a certain extent financial advisers have to be a jack-of-all-trades. They help you shape your entire financial portfolio so they have to be knowledgeable in a lot of different subject matter. Insurance agents on the other hand only handle insurance. Some may actually focus on one specific type of insurance.

When the insurance agent is specialized in the type of insurance you are looking for it’s usually suggested that you carefully consider their advice. This is especially true if it is a complex or new insurance product that your financial planner isn’t as familiar with. Anytime special certification or license is needed to create a policy definitely listen to the person with the appropriate credentials.

Having both an insurance agent and a financial adviser gives you the advantage of having two different sources of information. It’s important to keep in mind that they are both looking out for your best interests. Oftentimes they will agree on which route is the best one to take, while at other times their opinions may differ. Sometimes it’s just a matter of going with the person who has the most information at hand.

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Original Source: http://www.mybiginsurance.com/your-insurance-agent/when-to-listen-to-your-insurance-agent-instead-of-the-financial-advisor


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