Whats the Difference Between an Insurance Broker & an Insurance Agent?

Insurance for most people is something that most households don't spend enough time on. Most people will spend more time comparing prices at the grocery store than they will when shopping for insurance. Most do this because they simply don't understand or want to understand there coverage.

Here's one easy part of insurance that can save you literraly thousands a year in insurance. The difference between a broker and an agent can be huge for most households.

So what is the difference between an agent and broker? The definition is quite simple, an agent works for one carrier such as State Farm, American family & others like this. They are bound by contract to offer you only this carriers products. When begininning a relationship with them or renewing a plan they will only provide quotes for this carrier, they will tell you all the great benefits but thats as far as it goes.

An Insurance Broker is a licensed agent for multiple carriers, these carriers do not require exclusive contract so they are able to provide there clients a number of options. These agents have much less bias towards particular carriers and are more willing to tell you the good and the bad of various carriers and different options.

In these times it makes much more sense to start with finding a reputable Insurance Broker, they will be able to provide you fast comparisons of various carriers and explain the differences of these plans and carriers so that you can understand them.

by Ryan Terry


Adam said...

To put it simply, the insured person pays a minimal premium in term life insurance, much less than whole life insurance. If you die within the term of the policy, the Hawaii life insurance will pay your beneficiaries the face value of the policy. This life insurance policy is available in whole state

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