Types of Insurance Agents

Insurance agent

Life insurance agents of course, sell insurance, but their job extends far beyond just sales. Agents use a multi-step process to help to find you the right product each time.

According to Gary P. Cubeta of Insurance for Final Expenses, what most people looking for best burial insurance donít know is that there are different types of agents through which the same insurance policy can be availed.

Since, most of the insurance buyers are themselves caught up in other busy thoughts, they seldom take time to evaluate each of these channels, which we are going to discuss in this article.

Each type of insurance agent comes with their own advantages and disadvantages. In this article we will try to evaluate the pros and cons of each of these types of insurance agents to help you make an informed choice based on your specific requirements.

Who is an insurance agent?

Insurance agents are those professionals who are associated with an insurance company authorized to sell their insurance plans to consumers. As they sell the insurance plans they receive commission for each sale they make.

The main function of an insurance agent is to make sure that the buyer is choosing the best plan for the insurance based on specific requirements.

However, an insurance agent is different from an Insurance broker. An insurance broker usually represents the consumers and their interests. They help consumers with research and analysis and then recommend a policy based on many factors.

As with any professional industry, there are three types of Insurance Agents.

Independent Agents

Independent agents are best for people who know exactly what they want and are looking for the best price for their needs. Independent agents have the added benefit of being able to search across companies for the best possible product that will fit your goals. Captive agents, on the other hand, may not offer the most competitive prices, but they are definitely experts in their products and can tailor a suite of insurance services that work best for you.

Independent agents work best for people who have trouble qualifying for life insurance due to pre-existing health conditions like diabetes, stroke or previous heart attacks. They are also great for people who have dangerous hobbies like diving with sharks or paragliding. People who frequently travel internationally also find that independent agents can offer more options to meet their insurance needs.

Captive Agents

Captive agents typically work for one company, selling their products exclusively. Captive agents are known for being well-versed in the company’s products. Most of the major carriers—State Farm, Allstate and Progressive—use captive agents. These agents are most helpful for people who are buying insurance for the first time or need more guidance on what type of insurance products they need. Because the captive agents have the backing and support of their larger company, they can devote more time to working with their clients instead of marketing their business.

Career agents

Career agents are a hybrid between independent and captive agents. Career agents typically work with one company but have the ability to sell independently as well.

It is not often that you will come across career agents. For the most part, most of the agents you work with will fall under either the independent or captive umbrella.

How Insurance Agents Work?

When you call for a quote, your insurance agent will interview you and likely do the following:

  • Interview you about your personal details. Your insurance agent will want to know your age, marital status, your occupation and your income
  • -Ask about your financial situation. What are your expenses? What ongoing financial obligations do you have?
  • -Put together a personalized quote, based on your life circumstances. This quote is unique to you and will outline everything you need to be fully covered. This is your document to keep and review to help you to make the right decision.
  • -Follow up. If you decide to buy the policy from them, they will check in with you each year to make sure that your coverage needs are still being met.

Carrying the right amount and type of life insurance is vital to ensuring that your assets and beneficiaries are protected.

There are many types of insurance products on the market, and finding a life insurance agent who can meet your needs can be tricky. Finding an agent who can help you to navigate through this process and make the right choices is key to ensuring the right amount of coverage.