by GarySpicuzza » Sun May 10, 2009 11:06 am
Insurance is the cornerstone of any financial plan.
Without insurance your financial plan isn't sound, its built on quick sand.
You have to transfer your risk of loss to professional risk management firms.
Nobody likes buying insurance including insurance agents.
Insurance companies are multi-billion dollar conglomerates.
By the way, would you do business with a poor, struggling, just-getting-by insurance company?
Your insurance agent is your Primary Financial Planner.
Anyone who tells you any different is a kool-aid drinker who can't separate Sales Talk from Financial Facts.
Without insurance your financial plan isn't sound, its built on quick sand.
You have to transfer your risk of loss to professional risk management firms.
Nobody likes buying insurance including insurance agents.
Insurance companies are multi-billion dollar conglomerates.
By the way, would you do business with a poor, struggling, just-getting-by insurance company?
Your insurance agent is your Primary Financial Planner.
Anyone who tells you any different is a kool-aid drinker who can't separate Sales Talk from Financial Facts.
Posted: Wed May 20, 2009 01:24 am Post Subject:
Is there a way a consumer can buy directly from the company without going through an agent or broker? Surely this would cut down on the middle-man costs...
There are some life insurance companies that sell directly to consumers and don't pay commissions. You would think that these products would be cheaper. In fact, they are actually not competitively priced.
You have to keep in mind that commissions are nothing more than a distribution cost. If a company isn't paying commissions, how are they going to get someone to sell their policies? They have to hire them and pay them a salary. Hiring people and paying salaries is more expensive than paying commissions, thus companies that sell direct can't financially compete.
For a company that does pay commissions, they can't legally charge less to someone who buys direct. Even if they could, they probably wouldn't do so. If they undercut their own agents and brokers, the agents would quit and the brokers would place business elsewhere.
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