Before discussing the benefits of working with an insurance broker, it is important to note the difference between a life insurance broker and a life insurance agent. A life insurance broker is an independent agent that can offer life insurance products from major insurance carriers. By contrast, a life insurance agent is employed by one insurance company and is usually only able to sell that carrier’s product to the client. Because a life insurance broker does not represent only one insurance carrier, there are many advantages to working with a broker in order to take care of your insurance needs.
1.) Brokers have the ability to shop around
Perhaps the biggest advantage of working with a life insurance broker is that a broker has the ability to shop around for the best rates for their clients. For example, for a 20-year-old male looking to purchase $500,000 of term life insurance, Empire Life offers the least expensive option at $25.20 per month. By contrast, Sun Life offers the same product for $30.15 per month. For a 60-year-old male looking to purchase $500,000 of term life insurance, however, Sun Life actually offers the most competitive rate. This insurance policy would cost the 60-year-old male $223.65 per month, whereas Empire Life would be slightly more expensive in this scenario offering the same product for $226.35 per month. In both instances, a life insurance broker can ensure that you are always getting the most competitive rate in the marketplace.
2.) Brokers work for you
While a life insurance broker represents multiple insurance companies, they are not employed by these companies. Thus, they have no ties to one company and are not pressured by one company to meet sales goals or levels, or sell a particular product over another. Instead, a broker’s client is actually his employer. A broker has one objective, and that is to offer products to their clients that are in their clients’ best interest.
3.) Brokers have access to a large product shelf
Again, because a broker works with all major insurance companies, they have access to many different insurance products. Sometimes, rate is not the most important aspect of your insurance purchase. Certain companies offer different features to their insurance products that may be very beneficial to the policyholder. It is a broker’s job to stay up to date on all of the features that each insurance company has to offer within their life, critical illness, and disability products. A certain company may offer a life insurance product that is most beneficial to the client, but may not offer the most beneficial disability policy. In this instance, a broker can ensure that the client purchases the most appropriate life insurance and disability insurance product by presenting options from different insurance carriers.
By representing multiple insurance companies, there are many advantages to working with a life insurance broker. Life insurance brokers work for you, and ensure you are receiving the most competitive rates and the overall best insurance plan in the marketplace for your individual needs.
Article Written by: Mike Castagna