Insurance Broker VS Insurance Agent. Which Is Better?

There are very distinct differences between a life insurance broker and an agent. In this article we will help you understand the differences so you can decide which is the better option for your situation.

Here a few key advantages to working with a broker

• Pricing– Since a life insurance broker has access to more companies they can generally find better pricing for the same policy than an agent who only has access to one insurance company.
• Pre-existing conditions– Every company does not accept the same health issues. When dealing with an agent they may not be able to cover your illnesses and if so they don’t have any other options available.
• Policy types– A broker will have access to all policy types. Whether you need term, universal, or whole life insurance they will have options. Some agents work for companies that have a full product line while others only offer one or two types of coverage.
• Issue ages– The ages that qualify for coverage differ by company. An insurance broker will generally be able to protect the widest age range.
• Saves time– Working with a broker saves you time in having to speak with multiple agents and go through several sales pitches to get a variety of quotes.

Here’s why we represent multiple insurance companies

When I first got into the insurance business I worked for one company. They were a great company and I learned a ton there. By the 2nd year I was one of the top agents in the office. At this point I decided this would be my lifelong career. As I began to work with more clients I kept running into situations where I couldn’t get a person qualified because of pre-existing conditions. At the time I thought if they couldn’t get coverage with me they couldn’t get it anywhere.

One day a client who was denied coverage called to tell me how excited they were that they found a company who would accept them. I had to investigate.

I wanted to be sure my client wasn’t being taken advantage of so I offered to come by and review the policy. Sure enough she really had been approved and the coverage was legit. I reached out to the agent who sold her the policy and he educated me on the benefits of being a life insurance broker versus an agent. He stated that he had to go through three companies before he could get her approved but, he was able to do what I couldn’t.

I saw that I would be able to help even more clients and offer a higher level of service. It took a couple years from that point for me to transition. Over time I became increasingly frustrated with the slim product offerings of the company I worked for. I began to feel like I was trapped in a cage. In fact an agent that only works for one company is called a “captive agent”.

Many captive agents are trained to just tell their potential clients that there’s no need to shop around because their company or product is “the best”. This is simply not true. There are well over 700 companies that offer life insurance in the United States. There isn’t one company that’s the best at everything.

If you want more policy options, more competitive pricing, lenient underwriting, the ability to shop around with one person, and access to more products you may conclude that working with a broker is your best option.

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