6 myths about buying life insurance

Insurance » Life Insurance » 6 myths about buying life insurance

Myth No. 5: Working with many agents saves money
Myth No. 5: Working with many agents saves money © Tatagatta/

Myth No. 5: Working with many agents saves money

Should you shop for your life insurance through one agent or several? Can a one-company "captive" agent get you the best rates? How about your multiline home-auto insurer?

While situations vary, Steuer recommends working with one agent or broker who writes for a dozen or more companies, especially if you have health issues.

"Some companies just won't touch cancer patients; other companies will consider them on a case-by-case basis or they'll consider cancer survivors," he says. "Then sometimes there's a competitive advantage where your agent will say, 'Company A is willing to go standard (rates) on this. Will you consider going standard on it as well?' and set up a negotiation."

What about using several agents? "It doesn't work out well because then you have to interpret all the stuff that you're getting from the agents rather than hiring an expert to sort through it," he says.

How about using a captive agent? "That would be a major disadvantage because they don't have multiple underwriters," Steuer says.

That said, your home-auto insurer may not be a bad choice for those who want to keep all their policies under one roof.

"You'll probably pay 5 (percent) to 10 percent more in premiums," he says. But for some, that might be worth it."


Show Bankrate's community sharing policy
          Connect with us

Compare multiple quotes in just 6 minutes

Get competing rates from top companies including:

Learn the latest trends that will help grow your portfolio, plus tips on investing strategies. Delivered weekly.


Jay MacDonald

Can insurance handle Germanwings crash?

An estimated $1 billion in aviation insurance is expected to cover the Germanwings A320 tragedy.  ... Read more

Partner Center

Connect with us