Life insurance agents help individuals and families protect against financial loss when someone passes away. They can help you find the right policy to fit your budget and needs.
They can either be captive, selling only products offered by their company, or independent agents, who can sell policies from many different companies. See These Helpful Hints!
Independent agents
Independent insurance agents are not tied to a single company, so they can offer clients policies from multiple providers. This means that they can find the best plan for each client’s unique needs. They can also provide quotes on multiple lines of coverage, including Medicare Supplements, Medicare Advantage, Part D, and ancillary products.
Additionally, independent agents work with their clients throughout life’s changes and challenges. They are present when their clients buy a new home, have children, start a new business, or experience a tragedy.
As a result, they have the insight and experience to help their clients navigate complicated issues like claim disputes and billing problems. Independent agents are often invested in their community, and they understand local issues that may affect coverage like flood zones or sewer backup. They can also connect their clients to specialists like accountants and attorneys. This helps them save time and money on complex insurance issues. In addition, they can provide a variety of quotes on quick policy evaluations.
Captive agents
Captive agents work for a single insurance company and sell that insurer’s products only. They are often expected to hit strict quotas and typically have brick-and-mortar locations. They can provide quotes for coverage on policies from their insurer and may also have in-depth knowledge of their carrier’s offerings.
However, they are unable to compare other companies’ products and offer broader policy options for their clients. In addition, captive agents can’t provide specialized coverage for those with unique underwriting conditions.
Captive agents can transition to independent status by partnering with an insurance field marketing organization or independent marketing organization (FMO/IMO). These organizations have direct contracts with multiple carriers and can help them develop their business. They can even provide guidance and support to help them meet their sales goals. This helps them become a better agent and provides clients with more choices. Moreover, they can save their clients money by finding a quality plan that fits their needs.
Brokers
Insurance brokers are independent professionals who act on behalf of clients to find the best life insurance policies. They work with multiple insurance companies to offer a wide range of policy options for the client. They also provide guidance and help with completing the application. They typically charge a fee for their services.
Brokers are incentivized to make sure that their clients stick with their policy, so they often take the time to assess their needs and explain the fine print. They may also ask questions about the client’s family, health, and finances to find the best fit.
A life insurance agent is incentivized to sell the products of the company they represent, but a broker can work with a number of different insurers to find the right policy for the client. This can be helpful for buyers with specific coverage requirements or those who want to explore their options quickly. In addition, brokers don’t get paid unless they sell a policy, so they are highly motivated to find a policy that meets the customer’s needs.
Fee-only insurance consultants
Unlike traditional life insurance agents, fee-only insurance consultants offer objective advice about complex policies. They also don’t receive commissions for selling policies. They typically serve clients through referrals from financial planners and accountants.
For example, a fee-only advisor would not recommend a permanent policy when a client needs a term. Such a recommendation might cost the client more in premiums over time. However, a financial planner who does not sell insurance might be more likely to recommend a permanent policy because he or she stands to earn a commission from the sale of a product.
Insurance decisions can be complicated, especially for people with complicated life insurance plans or retirement policies. These experts help their clients understand the options and choose a policy that fits them best. They often specialize in one area of insurance, such as life, annuities, long-term care, or actuarial services. Some even provide a full range of services for their clients. They can help with everything from estate planning to investment strategy. Click here for the next blog post.