Difference between an Agent and a Broker

What is the difference between a life insurance captive agent vs a life insurance broker? A life insurance captive agent represents only one Toronto life insurance company and can only provide you with the quote that is  related to their particular company. They work directly under the company and are usually unaware of the great number of products and benefits that other Toronto Life Insurance companies may offer. It’s far more advantageous to work with a life insurance broker. Firstly, they have a broader knowledge on a wider range of life insurance companies. And rather than show you one quote, brokers can show you Toronto Life insurance quotes from approximately 15 different Canadian life insurance companies. A life insurance broker is licensed with each and every company. For clients who may have or have had medical issues, brokers can offer information on the respective life insurance underwriting practices from company to company . They can also give you tips on what companies may provide you with discounts if you do have some health issues. This could mean significant savings on your monthly premiums.

Insurance brokers have the ability to work with the different insurance companies at the same  time without limitations unlike insurance agents who are held captive to that particular company hence the reference captive agent. Jack Bendahan Life Insurance Advisor and Toronto Life Insurance Media expert explains ” Sometimes I will have a client who has medical issues complete several application for various companies, in an attempt to get them the best priced policy, the hope is that  some of the underwriters will give us a better rate or might be more aggressive. I then use this information to address each company separately.This can sometimes lead to great success in getting someone approved even though another company may have declined them, or better yet get them a more aggressive  insurance rate.” Researching the best insurance company which suits your needs means its  always worthwhile to find an independent broker and get full details of the products, the companies, and use the brokers experiences with various companies and then to  weigh your options. An independent life insurance broker can help you with there experience and track record which usually leads to successful underwriting and approval. To summarize, Toronto life insurance brokers are more advantageous compared to captive agents as brokers can give you reliable information on the all the products thereby providing you with more options and in so doing a policy best fit for your needs.