When it’s time for you to look at getting life insurance, like most people you go to your bank or do a search online to find a local insurance agent. You then make an appointment, meet with the agent, get a quote and then apply. But did you know there are different kinds of agents and the one you choose can make a big difference in the type of service you receive and the products that are offered to you.  I am going to go through the two types of agents and the difference between them so you can see the importance of choosing the right agent for you.
 

Captive Agents

These advisors and agents represent just one company or bank. They can only offer you their companies’ products, services and coverage’s.

•  A captive insurance agent is tied to one  company. You are not given a choice, they can only  recommend their company’s products and services…the same one that pays their salary. They will always tell you their company is the best.
• To a captive insurance agent you are just a  number.  Captive agents are pressured and evaluated based on sales. They are offered  bonuses, contests and promotions based on how much they sell. Do you really think that your needs are what they are most concerned with?
• A captive agent is not tied to you. Often the insurance advisor changes branches,     gets promoted or leaves and another takes their place. You have no choice than to deal with the one that is assigned to you.
• A captive agent isn’t focused on service. Because of the pressure to make sales that is what they spend their time doing. For service or to make a claim you will have to call a 1-800 number or search for the forms on-line and fill them out by yourself. After sending the claim in you will have no communication until they send their response to your claim. If there is any problems or they deny the claim you are on your own. 

Independent Agents

Independent agents represent many insurance and financial companies. This means they can look at your personal situation and shop your needs with several companies to make the best recommendation for you.

•  An independent insurance agent is not  tied to one insurance company. You      don’t need to change agencies as your insurance and service needs change.
• An independent insurance agent treats you  like a person, not a number. I try      to develop a personal relationship with my clients. Can you do that with a voice on the phone or the person at the bank that is always changing? If you don’t like your independent agent you can find another agent to take  over your policy. Also an independent insurance agent has strong customer and community ties.
• An independent insurance agent offers  one-stop shopping. I can offer many plans through many companies, giving you the potential for the broadest range of coverage at a competitive price. One call puts you in touch with someone who can do the comparison shopping for you.
• An independent insurance agent provides personalized claims service. I am      there for you when you need help. I can contact the insurance company and get the claim process rolling, help you fill out claim forms, advise you on the progress of your claim, and work closely with the insurance company  to make sure you get a prompt and fair settlement of a valid claim.

To put it simply just ask yourself if you want to sit across from an agent that can create several life insurance policies from multiple companies that are designed around your needs, budget and make sure you understand everything so you can make an informed decision? Or an agent who can only show you one policy, one price and will have nothing to compare it with?  I don’t know about you but I like to have choices.
For more information about life insurance go to AndrewWBradley.ca and if you would like your policy reviewed to see if you’re paying too much or if there is something better available please contact me today at 613-286-6841.
The information is of a general nature only and does not take into account your individual objectives, financial situation or needs. It should not be used, relied upon, or treated as a substitute for specific professional advice. I recommend that you obtain your own independent professional advice (preferably me) before making any decision in relation to your particular requirements or circumstances.
By Andrew W Bradley