How to Spot Red Flags When Choosing an Insurance Agent
Considering How to Spot Red Flags when Choosing an Insurance Agent: Choosing an insurance agent is more than just picking someone with a license. Your agent should be a trusted partner—someone who understands your goals, explains your options clearly, and recommends what’s best for you, not what pays them the biggest commission. That sounds obvious, but the reality is most consumers don’t discover the difference between a true advisor and a salesperson until after they’ve signed paperwork and the “surprises” show up in the fine print.
Insurance decisions are rarely one-size-fits-all. Even within the same product category, carriers price risk differently, define underwriting tiers differently, and structure features differently. The agent you choose is the filter between your goals and the policies available in the marketplace. A good agent helps you make confident decisions. A bad agent can leave you underinsured, overpaying, stuck in the wrong contract, or dealing with a denied claim risk that could have been avoided with better guidance.
At Diversified Insurance Brokers, we take pride in educating clients rather than pushing them. We are a family-owned, independent brokerage that works with a large network of top-rated carriers, which means we can compare options and fit the solution to your goals instead of forcing your goals into one company’s product shelf. If you want to understand who you’re working with and why independence matters, you can also review our background on the About Diversified Insurance Brokers page.
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Why “Choosing an Agent” Is Really Choosing a Process
Most people think the policy is the decision. In practice, the process is the decision. The process determines whether you see enough options, whether the agent is transparent about tradeoffs, whether underwriting is handled correctly, and whether you understand what happens if life changes. If you are buying life insurance, for example, process determines whether you’re placed in the right underwriting bucket, whether you’re applying with a carrier that fits your health history, and whether you’re prepared for the records the insurer will request.
That is especially true for anyone with a medical history, an unusual occupation, or a prior decline. If you fall into any of those categories, you want an agent who understands underwriting strategy and carrier appetite. Many consumers only discover how important this is after they’ve already been declined once and now have to answer “yes” to prior decline questions. If you want context on how underwriting really works, start with how life insurance works and, if relevant, the guide on life insurance with pre-existing conditions.
Red Flag 1: They Only Show You One Company’s Products
This is the most common red flag, and it is also the easiest to miss because it can sound like “confidence.” If an agent presents one carrier, one illustration, and one “best option,” they may be captive to a single company, contracted with a limited set of carriers, or simply taking the fastest path to a commission. The issue is not that one carrier can’t be a good fit. The issue is that you have no way to confirm it without comparisons.
Comparisons matter because carriers price risk differently and design features differently. With annuities, for example, different companies can offer different crediting methods, surrender schedules, bonus structures, and rider costs—so the “best” option depends on your time horizon and income plan. If you’re using annuities for predictable growth, you can benchmark options using our current fixed annuity rates page. If you’re evaluating products with an upfront bonus, compare designs on our current bonus annuity rates page. If your agent refuses to compare, you’re not seeing the market—you’re seeing a shelf.
Red Flag 2: They Pressure You to Buy Immediately
Good agents educate. Bad agents rush. Pressure often shows up as artificial deadlines, fear-based messaging, or a refusal to provide written explanations. While certain underwriting ages, renewal windows, or rate changes can make timing relevant, urgency should be explained with specifics, not vague pressure. If the agent cannot clearly explain what changes if you wait (and what does not), that’s a sign the urgency is for them, not for you.
A good process gives you room to understand your options, especially when there are long-term consequences. Life insurance is not a “click and forget” purchase if you’re choosing between term and permanent designs, or if you’re planning around conversions and long-term needs. If you want a framework for term versus permanent and how the long-term logic works, you may find it helpful to review is life insurance a good investment and how certain policies can shift over time through convert term to permanent life insurance.
Red Flag 3: They Can’t Explain Why a Product Fits Your Situation
If the explanation sounds like a script, it usually is. A trustworthy agent should be able to clearly explain why a product fits your goals, where it might not fit, and what the alternatives look like. With annuities, that means explaining surrender periods, liquidity rules, rider fees, and what “guaranteed income” actually means in contract language. With life insurance, that means explaining underwriting classes, how premiums are determined, and what factors could change pricing or approval.
One simple test: ask the agent to explain what would make them recommend a different product. If they can’t answer, they’re not advising—they’re selling. A second test: ask what the carrier is most strict about in underwriting. If the answer is vague, that can be a sign they don’t regularly work cases through underwriting, or they don’t shop carriers based on risk appetite. For a quick grounding on how underwriting outcomes can vary and why, you can review life insurance table ratings explained.
Red Flag 4: They Gloss Over Fees, Surrender Charges, or Policy Mechanics
This is where consumers get hurt, especially with longer-term financial products. If your agent is reluctant to discuss surrender charges, withdrawal limits, fees, or riders, assume you will learn those details the hard way later. With annuities, surrender schedules and liquidity rules can be the difference between a smart strategy and a painful surprise. With life insurance, policy mechanics like conversion windows, premium structures, and underwriting requirements matter more than the marketing pitch.
If you’re evaluating annuities specifically, it helps to understand the mechanics that govern liquidity and early exits. A consumer-friendly deep dive is available in our guide to annuity free withdrawal rules, which explains how penalty-free withdrawals generally work and what “free” actually means in contract terms. If an agent refuses to walk through those details, that’s not a minor issue—it’s a major warning sign.
Red Flag 5: They Dismiss Your Health, Occupation, or Underwriting Concerns
Underwriting is not a formality. Underwriting is the decision. If an agent tells you “everyone gets approved” or claims your health history won’t matter without reviewing the details, you’re dealing with someone who either does not understand underwriting or is willing to let you take the risk of a decline. The right approach is to identify likely obstacles up front, choose carriers strategically, and set expectations based on how insurers evaluate risk.
This matters even more for people in specialty occupations, aviation, higher-risk job classes, or roles that require unique underwriting. A good agent asks better questions because better questions lead to better carrier selection. If you want an example of how underwriting and occupation intersect, the page you referenced earlier—life insurance for aviation—shows why specialty categories require a different level of detail and why carrier fit matters.
Red Flag 6: They Act Like “Bigger Face Amount” Automatically Means “Better”
More coverage is not always better coverage if it creates underwriting friction, budget strain, or a structure that doesn’t match the purpose of the insurance. A good agent helps you choose an amount that aligns with your obligations, income replacement needs, and planning timeline. They also help you understand how policy type interacts with amount. For some households, layering multiple term policies is smarter than buying one giant policy. For some business owners, coverage needs are tied to specific risks like debt, partners, or key people—so the structure should mirror the financial exposure.
If the agent cannot articulate the reason behind the coverage amount beyond “more is better,” that’s a sign the recommendation may be driven by commission or a lack of planning discipline.
Red Flag 7: They Have No Process After the Policy Is Issued
Insurance is not a “one and done” decision for most households. Life changes. Jobs change. Debts change. Beneficiaries change. Business relationships change. A reliable agent has a process for reviews, beneficiary updates, coverage adjustments, and understanding whether your current policy still fits your goals. This matters with permanent life insurance and annuities in particular, where policy mechanics evolve over time and where the long-term value is tied to how the product is used.
Even if you are happy with your current coverage, there are moments where a structured review makes sense, especially if you have multiple policies, business coverage, or older contracts. If you want a clean way to audit an existing policy, see review my life insurance policy.
What a Trustworthy Agent Looks Like
A strong agent or advisor is easy to recognize because they are transparent and consistent. They compare options, explain tradeoffs, and document why a recommendation fits your goals. They do not disappear after the policy is placed. They can explain the “why,” not just the “what.” They can tell you what could go wrong and how to avoid it. They can show you alternative strategies if the first choice doesn’t work out.
At Diversified Insurance Brokers, our process is built around clarity and fit. That means you get real comparisons, not one illustration. You get clear explanations, not vague confidence. You get support through underwriting and beyond, not just at the point of sale. If you want to learn more about our approach, visit the About Us page.
Life Insurance Calculator
Use our life insurance calculator to explore coverage options and get a quick starting point. If you have a complex medical history, special occupation, or prior decline, the calculator can still be useful as a baseline—but the best results typically come from pairing it with carrier shopping and underwriting strategy.
Life Insurance Quoter
Instantly explore term and permanent life insurance options.
Compare Rates Before You Commit
If an agent won’t show you comparisons, use these benchmarks to keep the conversation honest.
Related Pages
- About Diversified Insurance Brokers
- How Does Life Insurance Work?
- Life Insurance With Pre-Existing Conditions
- Life Insurance Table Ratings Explained
- What Happens If You’re Denied Life Insurance?
- Review My Life Insurance Policy
- Convert Term to Permanent Life Insurance
- Group vs. Individual Life Insurance
- Annuity Free Withdrawal Rules
- What Is the Safest Type of Annuity?
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FAQs: How to Spot Red Flags When Choosing an Insurance Agent
What are the biggest red flags when interviewing an insurance agent?
Major red flags include high-pressure sales tactics, refusal to provide written quotes, lack of transparency about costs, and pushing one product without comparing alternatives.
Should an insurance agent show options from multiple carriers?
Yes. Independent agents should compare multiple companies. An agent who only pushes one carrier may not be providing objective recommendations.
Is it a red flag if the agent avoids answering questions?
Absolutely. Clear answers are essential. An agent who dodges questions or uses vague explanations may not be acting in your best interest.
Why does agent licensing matter?
Licensing ensures the agent is legally allowed to sell insurance in your state. You should avoid anyone unwilling to verify their credentials.
Are high-pressure sales techniques a warning sign?
Yes. Ethical agents educate and guide you, not pressure you into buying quickly. High-pressure tactics suggest the agent is prioritizing commissions over your needs.
Should I avoid agents who promise unusually high returns?
Yes. Any agent guaranteeing unrealistic growth or “risk-free” high returns should be considered a major red flag.
Can an agent refusing to provide written documentation be a concern?
Yes. Reliable agents provide brochures, illustrations, and disclosures. Refusing to document recommendations is a serious warning sign.
About the Author:
Jason Stolz, CLTC, CRPC, is a senior insurance and retirement professional with more than two decades of real-world experience helping individuals, families, and business owners protect their income, assets, and long-term financial stability. As a long-time partner of the nationally licensed independent agency Diversified Insurance Brokers, Jason provides trusted guidance across multiple specialties—including fixed and indexed annuities, long-term care planning, personal and business disability insurance, life insurance solutions, and short-term health coverage. Diversified Insurance Brokers maintains active contracts with over 100 highly rated insurance carriers, ensuring clients have access to a broad and competitive marketplace.
His practical, education-first approach has earned recognition in publications such as VoyageATL, highlighting his commitment to financial clarity and client-focused planning. Drawing on deep product knowledge and years of hands-on field experience, Jason helps clients evaluate carriers, compare strategies, and build retirement and protection plans that are both secure and cost-efficient.
