What Is an Insurance Advisor?

If you’re shopping insurance, chances are you could use some advice. That’s what insurance advisors are for! Basically, an advisor helps you understand, shop and buy insurance—everything from home and auto to life and health. These pros bring some much-needed expertise if you’re unfamiliar with a certain type of coverage.

 Do you have the right insurance coverage? You could be saving hundreds! Connect with an insurance pro today!

More importantly, good insurance advisors have the heart of a teacher, meaning they’re willing to explain coverage details to you and make sure you understand your options.

Let’s see how they get it done!

What Is an Insurance Advisor?

As we mentioned, an insurance advisor is an expert in the insurance world who can teach you about your insurance options and sell you the policies that best fit your needs. (Pro tip: Occasionally you’ll find an advisor who doesn’t sell policies but focuses instead on helping you understand how insurance fits into the bigger picture of your financial future.)

Insurance advisors sometimes go by different names, like agent or broker. At the end of the day, the names matter a lot less than what the advisor does. Maybe the trickiest thing to keep in mind is that broker doesn’t always refer to an individual. Sometimes the word is used to describe an agency or group of advisors who help insurance customers and shop multiple companies for them.

Don’t get too hung up on the labels, though. All insurance professionals can help you understand your coverage options, and most can help you buy the polices you need. But here’s what sets the great advisors apart from the rest: They care about protecting your finances as much as or more than protecting their own bottom line. In fact, that’s a legal requirement for a licensed advisor—not just a nice thing for them to do.

The easiest way to find experienced, licensed insurance advisors is through our network of RamseyTrusted^® insurance pros. Every pro we recommend will coach you on the basics of insurance and help you get the policies you need.

What Does an Insurance Advisor Do?

A good insurance advisor helps you balance two needs: protection and value. Since both factors matter, you’ll want to understand how they fit together in a complete insurance package.

Insurance advisors are usually qualified to sell many types of insurance coverages, including auto, home and health. And to offer such a wide range of policies in the most affordable way, they should know a lot about the market you live in. After all, location affects insurance premiums for many coverage types, including essentials like home and auto. (Hint: RamseyTrusted insurance pros have a lot of experience and success helping customers in their region get the best coverage around.)

Speaking of premiums, we know how tempting it can be to focus on price and think only about how to save money. Trust us, we love being thrifty. But when you’re figuring out how to protect yourself and your family from some of life’s most expensive risks, it’s no time to skimp! Just think how much money a car wreck or house flood could set you back if you didn’t have enough (or any) auto or homeowners insurance. Not a happy thought!

What Questions Does an Insurance Advisor Ask?

To understand your needs, advisors ask questions about your situation so they can recommend the right types of coverage. Along the way, they can offer you ways to save on premiums and help you get the right amounts of coverage.

Here are a few questions an insurance advisor might ask:

• What kinds of coverage do you need? For example, do you rent? Not all apartment dwellers know they need renters insurance to protect their stuff. But an advisor knows the ropes and can explain which policies fit your situation.
• What kinds of coverage could you drop? An insurance advisor can also help you drop or avoid coverage you don’t need. After all, not everything going by the name insurance is valuable—and some insurance products are a total waste. For example, you don’t need accidental death and dismemberment (AD&D) coverage. The right combo of long-term disability, health and term life insurance gives you the same protection as AD&D coverage, plus a whole lot more. That kind of insight can save you a lot of money. To shop smart, you need a great insurance advisor in your corner who has knowledge and your back.
• What’s your long-term financial picture? Depending on your life stage, advisors can help you understand if it’s time to get umbrella insurance, or whether you’re ready to drop life insurance. (Pro tip: You’ll need a good term life policy in place until you’re debt-free and have enough saved to live off the interest your investments are earning.)

Why Should You Work With an Insurance Advisor?

The main reason to work with an insurance advisor is simple: Nobody can have all the answers on their own—especially when it comes to something as complex as choosing insurance policies and fitting them all into your budget. Here are a few of the helpful roles an advisor fills.

Insurance Coach

Insurance advisors are coaches who want you to win. (Sure, there are some stinkers who upsell you for their own gain—but you can avoid those by working with our awesome RamseyTrusted pros.) They know and care a lot about insurance because they love helping people just like you. They work with you one-on-one, taking time to listen and understand your individual needs. Our RamseyTrusted pros get the point of doing life the Ramsey way, so they know you want to budget, cover the Four Walls (food, utilities, shelter and transportation), and build wealth. And while they can help you save money, they also know it’s not all about getting the best price—it’s also about making sure your insurance coverage kicks in with powerful protection if you ever have to use it.

Licensed Expert

Insurance can be a complicated subject, and there’s a lot on the line when someone sells you coverage. Fraud, inadequate coverage and even financial loss are just a few of the risks you face if the seller is operating outside the lines of state law. But licensed insurance advisors know what’s at stake. They’ve passed their state exams and have the certification to prove it.

Ongoing Coverage Consultant

Good insurance advisors periodically review your policies to make sure you’re still getting the right coverage at the right price. When big life change happens (think getting married, having kids, starting a business, buying a home, caring for an elderly parent, or adding a young driver to your policy), insurance advisors can help you update your coverage.

Do You Actually Have Enough Coverage?

Take the Coverage Checkup to get a personalized insurance action plan and connect with insurance pros who can help you put your plan into action and confidently check things off as you get covered.

How Do You Find a Trusted Insurance Advisor the Ramsey Way?

Now you know what a great insurance advisor does. But how can you find one of these world-class coaches with top insurance industry knowledge? By reaching out to our RamseyTrusted pros, of course! They can assess your current insurance situation, identify any gaps, and recommend the best policy mix for your specific needs and budget—all with the heart of a teacher.

Or maybe you’re still wondering about insurance basics and just want to read and think about your options before making any decisions. In that case, we’ve put together a list of easy and practical steps you can take right away to keep yourself moving toward the best coverage.