A. When you’re purchasing life insurance, you’re obviously thinking about how your loved ones would fare if the worst were to happen to you. It is at this time that you must also consider the differences between an insurance broker and an agent.
Insurance Agents vs. Insurance Brokers
The main thing to understand is that there is a difference. Some life insurance specialists work only with one company. Such a specialist could be thought of as a “hostage” operator. These are people we commonly refer to as insurance agents.
An insurance broker is different. This is someone who is able to work with any number of insurance firms. This person isn’t bound to any one company. They can go out and utilize any company that will allow them to do so.
Do You Need to Work With an Insurance Agent or Insurance Broker?
Are There Benefits Working With an Insurance Agent? The answer is yes, but only sometimes. Hostage operators can only offer you what the company they work with will provide. Therefore, you might not learn about everything that is available to you.
If you’re looking for a specific type of insurance, for example, term insurance, you’ll want to look elsewhere. This is where a life insurance broker will shine.
In these cases, an insurance broker, who is an independent specialist, will be ideal for you. That’s because he or she will be able to offer you several different options to choose from. Moreover, you’ll be able to select from a database of insurance companies to find the best arrangement for you.
In this situation, an insurance broker will have the upper hand over an insurance agent, or hostage operator. Insurance agents, who work solely with a single company, won’t have the benefit of different companies to offer you. What’s more, very often they can only offer you insurance products which are more costly than the ones you would get from an insurance broker.