Find the Appropriate Life Insurance Brokerage for Your Client
Life insurance products are valuable tools for helping clients secure their financial futures. For many, life insurance is a cost-effective way to protect against the financial impact of an unexpected loss of a loved one or business partner. Beyond providing essential coverage, life insurance can also play a strategic role in retirement and estate planning. A thoughtfully managed life insurance policy offers confidence, helping ensure your clients and their loved ones are well-protected.
Term Life
Term life insurance provides coverage for a specified period—typically 10, 15, 20, 25, or 30 years—and is generally more affordable than permanent life insurance. It’s ideal for those seeking protection for temporary needs, such as income replacement or mortgage coverage. While basic term life policies are fairly similar across carriers, it’s essential to examine the specific provisions and riders each carrier offers, as these can differ significantly and add valuable flexibility to the coverage.
Universal Life (UL)1
Universal life insurance policies are permanent products that include a cash value savings component, funded by premium payments beyond the cost of insurance. This means that the amount paid into the policy is split between maintaining the required coverage and building cash savings. Universal Life provides death benefit protection with a flexible premium structure, making it a potentially versatile and affordable solution for both business and personal insurance portfolios.
Whole Life (WL)2
Whole life insurance is a permanent insurance product that provides a guaranteed death benefit and guaranteed cash value growth, along with the potential for additional non-guaranteed cash accumulation through dividends. Whole life policies offer the highest level of guarantees compared to other life insurance products.
Indexed Universal Life (IUL)3
Indexed Universal Life is a type of permanent life insurance that provides a guaranteed death benefit along with the opportunity for cash value accumulation linked to a stock market index, such as the S&P 500. While the cash value has the potential for higher returns based on index performance, it also offers downside protection with a minimum guaranteed interest rate. IUL policies offer flexibility in premium payments and the potential for cash growth, making them a flexible solution. However, IUL premiums may vary based on the selected features and investment options.
Employer and Employee-Owned Executive Life Insurance
Employer-Owned and Paid life insurance policies allow the business to own the policy and pay the premiums, using it as a key part of their executive benefits package. These policies provide death benefit protection, cash value accumulation. This structure helps businesses protect their financial interests and retain top talent.
In an Employee-Owned/Employer-Paid arrangement, the employer pays the premiums, but the employee owns the policy. This setup gives the employee the flexibility to retain the policy even if they leave the company, enhancing portability and personal financial security. Both options provide a strategic approach to building a comprehensive benefits package.
The purpose of owning life insurance is unique for each client, depending on their goals, insurability, finances, health, and lifestyle. Rather than focusing solely on price, consider that a small premium increase can offer valuable features like conversion options and living benefits. It’s essential to look beyond face value, understanding both the coverage provided and the finer policy details.
Partnering with a knowledgeable insurance brokerage agency allows you to access multiple carriers and find the most suitable policy. Quality brokerages collaborate closely with carriers to create solutions that align with client needs, making a significant difference between securing an ideal policy or settling for one with limited coverage. Since each client’s situation is different, having a broad understanding of available products and access to multiple carriers gives you a valuable edge in finding the best fit.
Finding the right life insurance broker is key to ensuring you’re working with someone who truly meets your needs. Start by asking for referrals from your network. You can also connect with NAIFA, a respected nonprofit association for insurance brokers and financial advisors, to find reputable brokers.
Researching local brokerages can give you a good sense of your options. Here are some qualities to look for in a high-quality broker:
Responsiveness and attentiveness: Are they knowledgeable about the available products and solutions to serve you and your clients effectively?
Tech-savvy: Do they leverage technology to streamline the process?
Back-office support: What kind of support do they offer after an application is submitted?
Team-driven service: Is there a solid team behind the broker, or is it just one good salesperson? The level of service often makes or breaks a relationship.
Investment in their agency: Do the owners reinvest back into the agency, or are they mainly focused on self-compensation?
Reach out to the brokerage directly and ask specific questions to learn more about them, such as:
How long have you been selling life insurance?
Have you had any complaints with the state?
Who are your primary carriers, and what are their ratings?
What types of products do your affiliate carriers offer?
Do your homework and consider if the brokerage tends to promote products with the highest commission. Most importantly, if possible, schedule an onsite visit. Meeting the brokers in person can provide invaluable insights into the agency’s culture and how they’ll serve you.
Milo Markovic at Hunken Ewing Financial Group can help. As a full-service brokerage general agency, we handle everything from submitting business to getting you paid. With strong partnerships with over 30 insurance carriers, we can find the appropriate fit for your clients based on their coverage goals, product needs, and any underwriting challenges. You’ll benefit from a dedicated case manager, a proactive sales team, and carrier underwriters—all working together to create customized solutions that meet each client’s unique needs.
Connect with us by phone, online, or in person—or schedule a consultation with Milo today to discover how we can support you in growing your business.
Life insurance agents operate much like retail representatives for insurance companies. They often represent a single carrier, limiting their ability to offer a range of options.
Life insurance brokers, on the other hand, act as wholesale distributors and advocate for the consumer, not the insurance company. With access to the entire market, brokers can explore a variety of options on behalf of their clients, offering more choices than a typical agent can.
Yes, you can combine multiple life insurance products to better align with your client’s goals.
If any of the following statements describe your situation, you should consider a life insurance policy:
Other people depend on my income
- You don't have to be your family's primary wage earner – if people would feel economic hardship without you, they depend on your income. If you're single but planning to get married and have children in the next few years, your answer to this question should also be "Yes."
I have debts that others would be responsible for if I die
Do you have student loans that your parents will have to repay if you can't? A car, mortgage, business, or personal loan with co-signers? If so, a life insurance policy can keep you from burdening a loved one with thousands of dollars in debt payments.
I don't have enough savings or assets to cover all my obligations
- Most individuals don't have enough saved to fully pay off their debts and support family members in their absence. So, if you're like most adults with financial obligations, you should consider buying life insurance.
There are several ways to get a life insurance coverage estimate. The first one is called "Human Life Value" method, which looks at what you're earning now plus what you expect to earn in the future. Between the ages of 18 and 40, it multiplies current income by about 30; as you get older and have fewer working years left, that multiple decreases. Other rules of thumb to estimate how much coverage you need include:
Consider multiplying your income by 10
- Take your annual salary and add a "0" at the end. So, $50,000 salary equals $500,000 of coverage, $75,000 equals $750,000, and so on.
Consider multiplying your income by 10 – and add college for each child
- How much should you add? Account for somewhere between $100,000 and $150,000 per child. If you split the difference – and have two kids – that's an extra $250,000.
Consider using the DIME formula
DIME stands for Debt, Income, Mortgage, and Education. This method estimates your life insurance need as the sum of your financial obligations and other expenses:
- Debt: Total all your debts other than your mortgage.
- Income: Take your salary and multiply by the number of years you think your family needs protection – or at least as long as you have children at home.
- Mortgage: Look at your last statement and get the payoff amount.
- Education: The anticipated cost for sending each of your children to college.
The death benefit is paid out as an income tax-free lump sum unless the beneficiary chooses to take the benefit as an annuity or in installment payments. There are a few policies where the premium is paid with pre-tax dollars (for example, with some employee benefit plans); in that case, the death benefit may not be income tax-free. A death benefit can also be split: the policyholder can designate more than one beneficiary, for example, by dividing the benefit equally (or not) between their children.
That's an excellent question. All large insurance companies may seem alike, but they aren't. Some are more financially sound. Others are easier to work with. If you want to find and work with some of the best life insurance companies, there are objective metrics that can help:
High Financial Strength Ratings
- Independent organizations rate the financial strength of insurance companies to ensure their ability to provide coverage and meet obligations.
High customer satisfaction score
- Customer surveys and reviews can tell you how satisfied others are with an insurance company's services. Many in the industry consider J.D. Power & Associates to be a reliable source of insurance satisfaction data because they conduct an annual customer satisfaction survey of more than 5,000 U.S. life insurance policyholders.
Low customer complaints
- The National Association of Insurance Commissioners (NAIC) collects data about complaints with state regulators.
Brokerage Process
Life insurance brokerage begins by contracting a licensed insurance agent with an agency and appointing him or her with a carrier, to be able to sell life insurance products to his or her clients. Upon appointment as a broker, we set up a personalized page for them featuring professional photos, logos, and contact information.
Simplified Pre-Application Process
We provide a secure, encrypted pre-application link that the clients can fill out at their own convenience. This saves a lot of client onboarding frustrations because candidates tend to drop off from the process due to a lot of back-and-forth requests for personal data. This feature alone can save brokers up to 30 minutes per application. Once the pre-application is filled out, our staff transfers the data onto the official application on behalf of the broker; thus, the broker does not need to fill out the application themselves.
Carrier Selection and Policy Illustration
Our team, through collaboration with the brokers, makes the right choice of life insurance carrier that fits each client based on his financial goals and budget as well as health status. Through us, brokers are saved from the headache of moving from one carrier to another in search of an ideal solution. On the other hand, our dedicated underwriters go through the client's medical and financial records to ensure that the best-suited carrier is assigned. Brokers can run their own policy illustrations, but we know their time is limited. They can simply communicate their goals to us, and we will run an illustration.
Sales Support and Case Management
We support brokers through the selling process by informing the clients about the policy details and assisting in the closure of a sale. Our case managers support the administrative side of the application, including ordering medical examinations to follow up throughout the underwriting process for quicker approvals. When a policy is approved, we deliver it—either electronically or in paper form—depending on what the client prefers. If it's electronic, the client will have the convenience of making payments online.
Ongoing Support and Commissions
We support brokers with in-force illustrations, beneficiary updates, and policy changes if needed. This service will ensure that the brokers and their clients will receive ongoing support. As the writing agent, brokers receive a first-year commission and vested renewals, even if they choose not to write business with us again. Based on their production, they may also qualify for overrides.
This is designed for insurance agents, carrier agents from all mutual and private companies, as well as independent financial advisors, , investment advisors, employee benefits specialists, and Property and Casualty (P&C) insurance agents.
Life Insurance: Offering a wide range of life insurance products, including term, whole, and universal life insurance, to meet diverse client needs. We also work with carriers who provide executive benefits on a guaranteed issue basis, such as employee-owned and employer-owned life insurance, with the flexibility to add riders.
Carrier Access and Selection: Collaborating with various carriers to offer a broad selection of products and competitive options, ensuring the best possible fit for each client.
Pre-Application and Underwriting Support: Streamlining the application process with a secure pre-application link and dedicated underwriting team to review medical and financial records.
Policy Illustration and Presentation: Running policy illustrations and providing brokers with the tools and insights to present products confidently and effectively to clients.
Sales Support and Case Management: Assisting brokers throughout the sales cycle, from policy education and client meetings to administrative tasks and case management.
Ongoing Policy Service and Management: Offering support with in-force illustrations, beneficiary updates, policy changes, and other maintenance needs to ensure continuous service for brokers and their clients.
Marketing and Branding Assistance: Setting up personalized pages with professional branding for brokers, allowing them to present a polished image to clients and prospective leads. We support brokers with sales ideas and marketing strategies to help them enter new markets and niches, driving growth for their business.
Commission and Compensation Management: Managing commission payments, renewals, and performance-based incentives, such as overrides or expense allowances, based on broker production levels.
Time-Saving: Our simplified pre-application process eliminates unnecessary back-and-forth for personal data collection. By allowing clients to complete their information at their convenience, brokers save up to 30 minutes per application, enabling them to focus more on building client relationships and closing sales.
Customized Support: We handle application data transfer, case management, and ongoing policy support on behalf of brokers. Our team assists with every step, from policy illustrations to medical exams and policy delivery. This end-to-end support provides brokers with a streamlined experience, minimizing their workload.
Tailored Carrier Selection: We work closely with brokers to find the best life insurance carrier based on each client's specific financial goals, health status, and budget. Our underwriters review medical and financial records, ensuring clients receive the most suitable coverage.
Sales Assistance: Our sales support team helps educate clients on policy details, assisting brokers in closing sales with confidence. We act as an extension of the broker's team, providing valuable insights and facilitating a smooth sales process.
Enhanced Client Service: Brokers can rely on us for in-force illustrations, beneficiary updates, and other ongoing policy management tasks. This ensures clients receive exceptional service throughout the life of their policy, while brokers benefit from a professional support network.
Future Sales Growth: We support brokers in growing their business with existing clients by utilizing conversion options and reviewing their book of business to identify new opportunities.
Competitive Compensation: Brokers earn first-year commissions and vested renewals, securing ongoing income even if they choose not to continue writing business with us. Based on production levels, brokers may also qualify for additional overrides or expense allowances, further enhancing their earning potential.
Material discussed is meant for general informational purposes only and is not to be construed as a recommendation or advice. Please note that individual situations can vary therefore, the information should be relied upon only when coordinated with individual professional advice.
1. Universal Life Insurance may lapse prematurely due to inadequate funding (low or no premium), increase in cost of insurance rates as the insured grows older, and a low interest crediting rate. This does not apply to universal life policies which have a secondary guarantee, but if the secondary guarantee requirements are not met the policy will most likely lapse.
2. Whole Life insurance is intended to provide death benefit protection for an individual’s entire life. With payment of the required guaranteed premiums, you will receive a guaranteed death benefit and guaranteed cash values inside the policy. Guarantees are based on the claims-paying ability of the issuing insurance company. Dividends are not guaranteed and are declared annually by the issuing insurance company’s board of directors. Any loans or withdrawals reduce the policy’s death benefits and cash values and affect the policy’s dividend and guarantees. Whole life insurance should be considered for its long-term value. Early cash value accumulation and early payment of dividends depend upon policy type and/or policy design, and cash value accumulation is offset by insurance and company expenses.
3. An Indexed Universal Life (IUL) policy is not considered a security. Premium and death benefit types are flexible. It’s crediting rate is based on the performance of a stock index with a cap rate (i.e. 10%), a floor (i.e. 0%), and a participation rate (i.e., 100%). This type of universal life policy may lapse due to low or negative performance of the stock index, inadequate funding, and increasing cost of insurance rates.
7200322.1 Exp 10/26
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