When purchasing life insurance, annuities and other financial products such as disability income or long-term care insurance, you can choose to use the services of three types of agents.

 

Here are the three different types of agents and why it makes a difference who you deal with.

 

 

The Captive Agent

 

The first type of insurance agent works directly for an insurer and is not permitted to present competing alternatives to their employer’s products. Captive agents are paid a commission for selling you their employer’s solution, which is great if you need exactly what their employer can offer.  However, the disadvantage of dealing with a captive agent is that if your needs are not fully met by their limited set of products you may have to shop elsewhere or settle for a solution that doesn’t fit your requirements.

 

The Broker

 

The second type of insurance agent works directly for you and you pay them a fee to find competing alternatives to the products that you need. Brokers represent you not an insurance company, which is great if you don’t mind paying for the service out of pocket. In fact the broker’s fee can be a disadvantage or an advantage depending on how you look at it.  However, one other potential disadvantage of dealing with a broker is that they may not have the in-depth product knowledge of an insurance agent who has been specifically trained to sell a more limited set of products.    

 

The Independent Agent

 

The third type of agent, an independent agent, captures the best of both worlds: they represent many insurers as a non-captive agent and yet do not charge you for their services. An independent agent receives all of the training and attention from the insurers as a captive agent, and so has in depth product knowledge of each without being fully committed to any one in particular.  They can search the market for the solution that best fits your needs and are paid a commission by the insurer. If you are looking for both detailed product knowledge and a professional with independence you need look no further than the Independent Agent. 

 

Are you in the market for life insurance, disability income insurance, annuities or long term care insurance? If so, call in independent expertise: you can book a session with me to review your needs and I can show you options available to achieve your goals.  Click here to book a free, no obligation session with me, by Zoom.