5 Reasons to Fire Your Insurance Advisor

LACK OF INTEGRITY IS A FOUR LETTER WORD 

More than any other, the insurance industry has been plagued with mediocre or unscrupulous advisors. There are always those few agents who choose to either sell product firstly, or put their needs ahead of the client. I have worked with these slimeballs. For those of us who try hard to bring both professionalism and integrity to our industry, these shortsighted individuals make our road more difficult to travel. This post will list some examples of when you should ask the (and I use the word loosely) "insurance agent" to pack his bags and leave.

Here are five reasons to replace your current insurance advisor:

1)  Recommendations without research. Your "agent" suggests the maximum amount of insurance without considering either your financial situation or your budget. A red flag should go up if a thorough financial assessment is not conducted. All of us would like to drive a sports car, but maybe the budget and family dictate a Suburban may be a better choice for the time being. The same philosophy applies to insurance.

2)  Freedom of choice vs. one trick pony. Proprietary agents do NOT provide you with insurance carrier choices. Reputable brokers do. More choices almost always equate to better pricing and tailored solutions. Don't you want your doctor to offer several remedies if appropriate? For a bit more rant on this subject, click our previous blog.

3)  The upsale. Personally, I hate unsolicited upsale pitches. Your insurance advisor should present choices to you with the cost/benefits of each option. Ask yourself, why is this in my best interest and not yours. Seriously, IF I WANTED A FRIGGIN SCONE WITH MY COFFEE I WOULD HAVE ASKED FOR ONE! Please present me with all the facts and let me decide.

4)  Jack-of-all-trades. This world's about specialists. Specialists fine tune their skills and understand a specific discipline well. This especially applies to the financial services arena. I recently had a conversation with a good friend, and a trusted confidant, Tony Quintong, CEO of Securieon. His firm is considered much like a cardiologist, they treat one yet powerful area, the heart. Do you want a general practitioner treating your heart?

We discussed whether an investment professional honestly has the time to also study the insurance market. Due to the huge amount of information to assimilate, the answer is, in most cases, no. Do you ask your business attorney to do your taxes?

5)  Partnership. If after the first meeting you do not feel that the insurance broker has your best interest in mind and is 100 percent on your team, interview another. Just like all service related relationships, you should demand exemplary service and awesome rapport. This especially applies to Executive Benefits, where understanding company needs is paramount to providing effective solutions. Here's an ending meeting question: "If you were in my shoes, knowing what you know of my immediate needs, what would your recommend, why would you recommend this, and would you recommend this to your business partner, spouse, or board of directors?

The Key To a Happy Insurance Relationship

• Find an insurance firm that you and your staff are comfortable with. You will likely have this relationship for long time.
• Work with an insurance advisor you can trust with your business AND personal insurance needs. A competent insurance broker should be well versed in many insurance applications. If they don't handle a particular segment of the market, they should be able to refer you to a specialist who can help you.
• Do business with a firm who continually educates it's staff and takes the time to understand your needs... BEFORE they make any suggestions.
• Are you having a good time at your insurance meeting? The process should not be painful. A solid relationship includes laughter!

If you happen to come across a "product selling," "commission hungry," "my-objectives-before-yours" insurance agent... RUN.

There are enough of us good guys around to advise you properly. Better yet, give us a call at Fifth Street Financial Group and we'll show you how a relationship is supposed to feel like.

Lack of Integrity is a four letter word. You can choose the word.

Relationship = Everything