Issue link: http://clhia.uberflip.com/i/405151
17 THE IMPORTANCE OF YOUR AGENT 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. Some agents place business only with a single company; others (often called brokers) spread it around to other companies. One category is not necessarily better than the other. Life insurance is sold by agents or brokers, and appropriately licensed financial planners and stock brokers. Here, we will simply use the term agent. Different Names Ask about professional qualifications and training the agent has had. Agents with a CLU (Chartered Life Underwriter) or CH.F.C. (Chartered Financial Consultant) demonstrate commitment to their professional development. These programs require several years of study and examinations. Check Out Professional Qualifications