Secret Agent Man
Posted by Lenny Robbins on Wed, Jun 22, 2011 @ 04:35 AM
When it comes to life insurance, there are two types of agents...captive and independent (sorry no secret agents here).
The differences are probably pretty obvious...but let's spell them out.
Companies
A captive agent represents one company. They are limited in that they only have products available from this one company. Whether or not this company would be the best option for your personal situation is not something this agent can accommodate. They only have this one company and its products.
An independent life insurance agent has multiple companies that they represent. They have many different products from these companies. They are able to have you apply with the company that will look most favorably on your medical history, lifestyle, etc. They have many different choices!
In House Underwriting
I imagine that a captive agent may have access to an in house underwriter to discuss your case. However, they are still only able to offer you products from this one company.
Your independent life insurance agent with an in house underwriter has a great advantage here. The underwriter can assist the agent in getting you to the right place. We've mentioned before that every company has a slightly different underwriting guide. Your independent agent can save you money by having you apply with the "right" company.
Do you Smoke?
Did you know that if you occasionally smoke cigars, a pipe or use smokeless tobacco, some companies will give you non smoker rates?
The captive agent has the one company to go to. Did I mention that smoker rates can be as much as double non-smoker rates?
Your independent life insurance agent knows which companies are best for the occasional smoker. This alone will make a big difference in the cost of your life insurance.
How Much Time Do You Have?
A captive agent can't help you by shopping all the companies for you...they are only appointed with one.
Your independent life insurance agent can save you time and money by doing your shopping for you. By asking a few questions, your agent should have a good idea of what you will be rated. (If not, they can call their in house underwriter). Then they can show you a list of companies...and tell you which will be the best for your circumstances.
Lifestyle Choices
Are you a private pilot? Do you scuba dive? What about travel outside of the US and Canada?
Some companies are better than other for these (and other) lifestyle issues.
Once again, the captive agent has only one company and cannot offer you options for these kind of underwriting issues.
Your independent life insurance agent has choices and they can save you time and money. Time, because you can apply with the best company for you the first time. Money, because certain companies will charge you more for some of these lifestyle choices.
Key Point
An independent life insurance agent gives you many more choices than a captive agent. Want to get the best offer possible for your personal situation? Then talk to an independent.
Photo Credit: Mark Anderson