Bonus Insurance Tip: The best kept secret in the industry

This post is part of a series where personal finance expert Dan Solin provides 10 insurance tips no one else will tell you. See all 10, plus one bonus tip!

What if you had an uncle who was an expert in all aspects of the insurance business? He was retired and no longer sold any products.

What a great resource! He could sift through all of the confusing presentations and illustrations and tell you which policy was best for you.

Here is the next best option. Consider using a fee-only life insurance advisor. They are the best kept secret in the insurance industry.

These advisors receive compensation only from their clients. They will agree in writing to accept fiduciary responsibility (unlike your agent -- see tip #1) and will act solely in your best interest.

They have no interest in who you purchase insurance from or whether you purchase any insurance at all. Their job is simply to advise you what is in your best interest.They have no conflicts of interest. Their only goal is to give you advice so that you can obtain the best policy at the most cost-effective price.

They can assist you in picking the right kind of insurance product, designing a policy that suits your needs and reducing the commissions involved in the sale.

Hourly fees vary, starting at $250 an hour. Many evaluations can be done in under 10 hours. More complex situations will require more time.

When you consider the amount of premiums you will be paying over the lifetime of a policy, this can be an excellent investment. Often, a fee-only insurance advisor can save you many times his fee.

There are a small number of fee-only insurance advisors. Among the better known ones are Scott Witt, of Witt Actuarial Services, Peter Katt of Katt & Company and Glenn Daily. I have no affiliation with any of these advisors.

You can find others by searching for "fee-only insurance advisors" on an Internet search engine, like Google.

See 10 more insurance tips from Dan.

Dan Solin is the author of The Smartest Investment Book You'll Ever Read (Perigee Books 2006) and The Smartest 401(k) Book You'll Ever Read (Perigee Books, June 24, 2008).

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