What can an insurance agent do for you?

A risk management process which involves hedging against the risk of contingencies

, uncertainties or losses is commonly known as insurance. Insurance companies offer this service in exchange for a payment termed as a premium. The insurance company is generally known as the insurer while the person entitled to the insurance policy is known as the insured. The insurance procedure usually involves an insurance policy with a detailed contract.

Among many types of insurance made available, life insurance is one of the most distinct types for the very reason that it insures and values human life. Whereas other types of general insurance focuses on insuring the assets or other materialistic belongings of the insured. Life insurance is been claimed at times of death or other events of the insured. In order to promote and better understand the concept of life insurance, insurance agents are being appointed by the insurance company.

Life insurance agents specialize in promoting life insurance policies which are generally designed to pay compensation to designated beneficiaries when an insured event occurs. Depending on the circumstance, life insurance agents will then value the policyholders' dependents education expenses or any other cash value policy which benefits the dependents. In certain instances, life insurance agents also sell annuities to provide a retirement income.

In addition to the basic function that life insurance agents are expected to carry out, i.e. selling insurance policies, they are also proficient in providing advisory services to clients. Such advice can be related to risk mitigation plans of those situations under consideration. In addition, comprehensive financial planning services are also a common advisory service provided by life insurance agents. Moreover preparing reports, maintaining, recording and seeking new clients are also included in most life insurance agents' job description.

Life insurance agents who work exclusively for one particular insurance company are known as captive agents'. But life insurance agents are also often seen as those who work independently, facilitating and representing many insurance companies.

Once clients approach the insurance companies through life insurance agents, the policyholders can discuss and agree on many options put forward by the insurers. Some of such options may include the payments being made in lump sums or breakdowns, options of payments for funeral expenses etc.

An advantage of life insurance is that in the United States, the interest on the insured cash value is not taxable under the tax law under certain circumstances. This has lead to the widespread use of life insurance among Americans as a method of tax savings as well as financial security at times of death. However it should be noted that tax deferment depends on the insurance company, type of policy and other variables such as mortality, market return etc.

What can an insurance agent do for you?

By: Logan Norris

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