Independent Insurance Agent: How You Benefit

An independent agent works for you and is not tied to any insurance company.
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Independent Insurance Agent

Written by Brian Greenberg
CEO / Founder & Licensed Insurance Agent

Last updated: July 21st, 2022

Reviewed by Grant Desselle
Licensed Insurance Agent

You can easily shop around yourself for the right insurance policy for your needs, but it can be a bewildering task, especially if you are not familiar with the different types of insurance, and the benefits they can offer you.

There are important differences between term and whole life insurance.

Your options run from a simple term life insurance policy to a more advanced cash-value building permanent life insurance policy.

Most people get overwhelmed by the sheer complexity and wealth of choice available when it comes to insurance. They may seek help, but if they choose the help of an insurance agent who is representing a particular insurance company, they will only get advice that directly benefits that company. The advice may be good, but it will be restricted by what the insurance company has to offer, and there will be little flexibility for your insurance needs. However, using an independent insurance agent changes everything.

This is important. Your insurance broker will not be pushing a product or products associated with a particular company. They will be free to search through all the insurance companies to see which one offers the product you need, and at a cost and with the conditions that will suit you best. You will get the best of all possible worlds in this way as the broker is working to make you, and you alone, fully satisfied with the results.

You will have much better options available to you, and a “personal advisor” who will answer all your questions and concerns. Unlike when dealing with a company insurance sales agent, you will be able to get all the pros and cons of each package on offer, allowing you to make a judgment based on good, honest, solid advice. An independent insurance agent has dealings with many companies and is therefore in a position to know all the many variables involved. You can expect to get excellent value for money when you use an independent insurance broker.

Using an independent insurance agent gives you all the flexibility you will need.

If you find yourself unsatisfied with your current insurance policy, your agent can help you find another provider who offers what you need. In other words, you can concentrate on getting the right kind of insurance cover, without having to think of the best life insurance company that provides it. Your independent broker remains the liaison between you and the provider, whoever it may be, so you get an unbroken service in this way.

As your broker will be unbiased in his or her opinions, you can depend on the advice you get as being solid and sensible. They will receive the same commission rate from the majority of insurance providers, so they will have no incentive or reason to steer you in any particular direction, as there will be no benefit or advantage for them in doing so. They can also conduct a regular review of your insurance cover to assess whether you are being covered adequately, and make the necessary changes if not.

Independent brokers are experienced and professional in their dealings with you.

An independent insurance broker is trained to a very high standard of professionalism. They make their money through a commission they get for each insurance product they sell. You are therefore a source of income for them, so they have a strong incentive to keep you happy. They are more than capable of doing that through their considerable experience and extensive range of professional contacts in the industry.

Your broker has to be familiar with a very wide range of products from many different providers. Their portfolio will be much broader than that of an insurance agent working for one company. In addition, they will also have experience of working with other clients who had to make a claim against their policy, and they will therefore be familiar with the often confusing maze that is the claims process. You are able to benefit from this extensive experience.

Your independent insurance broker will also be bonded. It is a requirement, and it means that you are protected should there be any dishonest conduct that might be harmful to you. Agents must be licensed in the state they operate in, so you will know you are dealing with someone who has been professionally evaluated and approved at a local level.

Brokers who are not employed directly with a particular company tend to be better informed about current events within the industry. This is because they are regularly supplied with information from each of the various insurance companies they deal with. This means they can keep up with product changes and updates, unlike agents employed by one company who are only informed on changes and updates relating to that company.

Using an independent insurance agent gives you freedom in finding the company and the product that suits you best. It gives you the flexibility to change your policy if and when you choose to, and it provides you with the unbiased opinions of an experienced professional who has considerable resources and information to work with, spread out over a number of different companies. If you want to get the best service and professional advice possible for your insurance needs, you should use the services of an independent insurance agent.

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