Life Insurance Blog

life insurance brokers vs. captive agents
April 12th, 2010
in Life Insurance

When you are looking at buying life insurance you can work with two types of agents.  Either the agent will be a broker who independently shops a lot of companies and products or you will work with a captive agent who just represents one company.  A good example of a captive agent would  be New York Life or Northwestern Mutual.   While they do have good products, it is generally a losing proposition for the consumer.

Life insurance brokers will be a better option for the consumer as they are not beholden to one company and trying to fit a round peg in a square hole.   When companies are competing, it is generally going to be more beneficial for the customer.   The customer will benefit from a larger selection of potential products and will be able to access the best rates on the market if they are just buying level term.    The reason for using a company that is captive like a New York Life is that it is a good mutual company with a good whole life product.   There are a lot of good mutual companies that can be accessed in the broker market like Mass Mutual, Guardian Life Insurance company, Lafayette Life.

As a life insurance brokerage, we have access to just about every carrier on the market.  If you are buying term insurance it is basically a commodity, so it makes sense to look for the best rate.  If you are looking for a permanent plan with cash value, then we will look at all the good products in our portfolio.

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