The Triple-I blog received the terrific opportunity to ask State Farm life insurance agent, Robert Stevenson, a few questions about getting the most out of the often-misunderstood financial product.

What is your educational background and what was the path that led you to become a life insurance agent?

Robert Stevenson: I grew up in Savannah, Georgia and attended Hampton University in Virginia. I was working on my master’s degree when I accepted an opportunity with State Farm Insurance Corporate Headquarters. My job was to help the company expand its presence on the east and west coast. During that time, I learned about becoming a State Farm agent, and fell in love with it. I worked hard, and in December of 2000, opened my agency in New York, New York. As a State Farm agent, I’m a small business owner – I get to know people on a personal level. Helping them manage the risks of everyday life, recover from the unexpected, and realize their dreams is truly rewarding. I’ve never looked back.

What advice would you give students that are considering becoming life insurance agents?

RS: You have to listen and you have to care. This is more than a job. It’s helping people protect what’s most important to them. People don’t always want to talk about life insurance. It’s uncomfortable. But, let’s be honest. Someday you will die. No one in the history of the world has ever cheated it. That’s why, you have to make sure people are protected, and that they understand the bigger picture. You’re taking care of families and protecting the lifestyle they spent years building. While nothing can bring someone back, a family’s dreams can still be achieved because their loved one had life insurance. It’s truly a gift of love. You need to help people understand this.

What is the most common misconception that your clients have about life insurance?

RS: That they don’t need it. That they have enough. Often, I’ll hear the response, “I have it through my employer.” But, there’s a chance that benefit can be taken away. Also, if you have life insurance though an employer, and you get a new job, you might not receive the same coverage in your new position. Or, if you retire, it’s likely you won’t receive the same amount you once had. It’s wise to be proactive and read the fine print. Health and age also play a role in life insurance. I often hear, “I’ll wait till I’m married or have kids to get it.” Problem is, as we get older, our health tends to decline. Therefore, if you wait to get life insurance, you’ll likely end up paying more for it.

How do you help a client determine how much insurance they need and what type of policy is best for them?

RS: I start by forecasting. I ask customers questions like, “Where do you want to be in five, 10, 20, 30 years? Do you want to be married? Own a business? Have children? Travel? What’s your dream?” It’s vital for people to understand the importance of investing so they can generate more income as the years go by. Life insurance is not an afterthought. It’s the foundation of an investment strategy. You can’t invest in mutual funds, or stocks, or your child’s college, or buy rental properties, etc., if you don’t have the income. If something happens to you – your family is able to replace your income and still achieve their dreams.

It’s also important to help customers understand the difference between term life and whole life. Term does exactly what it sounds like – it covers you for a period of time. If you die within that period of time, your family is covered. But, think about this. Let’s say you’re 35, and you want to buy 20 or 30 years of term life insurance. Do you think you’ll be living 20 or 30 years from now? When I ask people that question, most answer, “Yes.” That’s when I remind them, when 20/30 years goes by and they’re still living, they won’t receive this payout.  Whole life covers you for the entire length of your life. No matter what. It guarantees your family will get paid. It’s more expensive up front, but you’re guaranteeing a payment – it builds value you can cash out.

How does one make sure that their life insurance policy does not get lost and that their beneficiaries get paid as quickly as possible after their death?

RS: When we sell a life policy, we tell our clients, “Make sure your loved ones are aware of the policy and each of you know where important documents are located.” For example, the safe in your house. Also, as life changes, periodic updates with your State Farm agent or financial planner are a smart idea to ensure everyone is on the same page.

What professional achievement are you most proud of?

RS: That’s a tough one. I’d say, when I got my securities license. It allows you to sell packaged investment products like mutual funds and variable annuities. Getting this takes a lot of work and involves rigorous testing. I had one opportunity to pass it. That was a lot of pressure. But it was worth it. Getting my securities license gave me the opportunity to open my office and help people.

What do you like to do in your spare time?

RS: I enjoy reading and golf. Having activities like these lets me to unwind. But more so, I love spending time with my family. I have a son and a daughter who keep me busy. Family time is important. All things in equal parts. That’s what keeps life joyful.