How to Verify a Life Insurance Agent Before You Buy, and How to Buy Remotely Without Getting Burned

Fraud is up, AI voices are convincing, and people are right to be careful about a stranger who wants their Social Security number and their health history. I would rather you verify me than trust me. Here is how, and here is the client who taught me to respect the question.

A prospective client was not comfortable doing something this important over the phone or Zoom. I showed him my credentials. I offered to share my screen. I offered to FaceTime. None of it was enough for him, and rather than push, I respected it.

He flew several states to meet me in person, and we put approximately $5 million of term coverage in place.

A trust objection is not always an objection to overcome. Sometimes a person needs to make a major decision in the environment where they feel comfortable.

A real client situation, details changed

The five-minute verification

Get the National Producer Number. Every licensed agent has one. Ask for it. Mine is on every page of this site. If an agent will not give it to you, that is your answer.
Look it up at nipr.com. The National Insurance Producer Registry’s search is free and shows the agent’s name, every state license, the lines of authority (life, health, and so on) and whether each license is active. Confirm the state you live in is on the list.
Check the carrier. The policy is issued by an insurance company, not the agent. Confirm the carrier is licensed in your state at your state department of insurance, and check its financial strength rating (AM Best, S&P, Moody’s or Fitch). A carrier rated A- or better by AM Best is the usual floor.
Never pay the agent. Premiums go to the carrier, by draft from your bank account or a check payable to the insurance company. An agent who asks for payment to himself, to a personal account, in cash, gift cards or crypto is not selling you insurance.
Expect the contract from the carrier. After approval, the carrier issues a policy contract, in print or through its own secure portal, with a free-look period printed on it, typically 10 to 30 days. Read it. Confirm the face amount, the premium, the term and the beneficiary match what you agreed to. If you never receive a policy from the carrier, you do not have one.

How a remote purchase actually works

Most of my clients buy by phone and video, and here is the sequence so you know what normal looks like. We talk through the four questions and I make a recommendation. You complete an electronic application, signed with a verification code sent to your phone or email. The carrier, not me, verifies your identity, checks prescription and medical records with your consent, and may schedule a paramedical exam at your home. The carrier approves and issues the policy. Your first premium is drafted by the carrier. The policy arrives from the carrier. At every step there is a party other than me confirming what I told you.

Red flags

Pressure to sign today, or a “rate that expires.” Underwritten rates do not expire in an afternoon.
Reluctance to name the carrier, or a carrier you cannot find licensed in your state.
Requests for payment to anyone other than the carrier.
A “policy” delivered as a PDF from the agent instead of from the insurer.
An agent who cannot explain why he recommended this carrier over others, or who only ever recommends one.

What I would do

Do the five steps above for any agent, including me. If you still want to meet in person, say so; I meet clients in Scottsdale and by arrangement elsewhere. The client who got on a plane made the decision that was right for him, and I would rather have a client who verified everything than one who trusted quickly and wondered later.

Questions people ask

What is a National Producer Number?

A unique identifier assigned by the National Insurance Producer Registry to every licensed insurance agent and agency in the United States. It stays with the agent across states. You can search it free at nipr.com to see active licenses, lines of authority and states.

Is it safe to buy life insurance over the phone or online?

Yes, when the agent and carrier check out. Applications are electronically signed, the carrier does its own identity and medical verification, and the policy is issued and delivered by the carrier, not the agent. The same verification steps apply whether you meet in person or on video.

What is a free-look period?

A window after the policy is delivered, usually 10 to 30 days depending on the state, during which you can cancel for a full refund of premiums paid. Every legitimate carrier provides one and it is printed on the policy.

How do I check an insurance company's financial strength?

AM Best, S&P, Moody's and Fitch rate insurers on their ability to pay claims. Ratings are published on the carrier's website and the rating agencies' sites. Also confirm the carrier is licensed in your state through your state department of insurance.

This article is general education, not advice for your situation. Policy features vary by carrier and state.