After you have identified your beneficiaries' needs, the next order of business
is to find an agent. There are a number of ways to do this. Collect several names
and then shop around. A life insurance agent is an important person in your life
and, as you would with a doctor, lawyer or banker, you should be satisfied with
an agent's reputation and qualifications.
All states require that producers be licensed to sell life insurance. Professional
designations, in the form of initials following an producer's name, indicate that
he or she has devoted considerable time to the study of life insurance and family
financial services. Those designations include "CLU" -- Chartered Life Underwriter,
"ChFC" -- Chartered Financial Consultant and "LUTCF" -- Life Underwriters' Training
Council Fellow. In addition, membership in the National Association of Life Underwriters
indicates that the agent subscribes to both the professional and ethical standards
of that organization.
When you first talk to an agent, be sure that he or she is willing and able to explain
various policies and other insurance-related matters. An agent should look for ways
to get you the right type and amount of insurance at an affordable price. Make certain
that your agent reviews your coverage from time to time, advises you about other
financial services and assists you when problems develop. If you are not convinced
that an agent understands your needs or is providing the service you want, get another
agent.