Independent insurance agents: What do they do?

As someone looking to purchase a health insurance policy, several considerations must be made to ensure the right policy for yourself and your loved ones. Whether you are looking for the most comprehensive insurance policy, the cheapest policy, a policy that covers pre-existing diseases, or one that is exactly suited to your specific needs, insurance agents are there to help you choose the best policy for your needs.

However, when looking for an insurance agent, one may encounter one of two types. The first is an exclusive agent who works for a single insurance provider and sells policies exclusively from them. On the other hand, you can also encounter independent insurance agents not affiliated with any particular insurance provider and selling policies from all affiliated insurers.

This article will explore who an independent insurance agent is, what they do, the differences between them and an exclusive agent, how they get paid, and the benefits of working with one.

Who is an independent insurance agent?

An independent insurance agent is a licensed expert responsible for selling insurance policies directly to customers. As one of the two types of agents, an independent agent, unlike an exclusive agent, is free to sell insurance policies from any number of affiliated insurers. This means an independent agent can combine various plans and sell a unique, comprehensive policy for your needs.

How does an independent agent differ from an exclusive agent in insurance?

As stated above, an independent insurance agent is free to sell policies from any number of insurance providers they are affiliated with. On the other hand, an exclusive agent is affiliated with a single insurance provider and exclusively sells insurance policies for them.

One of the core differences between the two types of agents is the policies one offers. While an exclusive agent’s policies can be limited to one company's offerings, an independent agent can combine a few plans to offer a more comprehensive policy. Although an independent agent has access to a broader range of policies, an exclusive agent is highly trained and is far more reliable. The exclusive agent is also highly knowledgeable about the specific insurance products and knows their ins and outs before recommending a particular policy.

There are several pros and cons to working with either type of agent; however, they play a vital role in ensuring accurate and beneficial advice when purchasing an insurance policy. This is why they are also referred to as insurance advisors today.

How can an independent insurance agent help you?

While insurance agents initially started as salespeople responsible for generating new business for the insurer, in recent years, they have also incorporated an advisory function into their role. They essentially listen to customers’ needs, understand their pain points, and recommend beneficial policies for the customers and their families.

Additionally, they explain the policy details, the differences between various plans, the terms and conditions, and the benefits, and they help out with the buying process. In addition, if you ever need to claim settlement for an insurance policy at the time of need, an insurance advisor stands by you and helps you with the claims process.

How do independent insurance agents get paid?

If you want to purchase an insurance policy from an agent and are concerned about paying service fees or money to the agent, do not worry. You do not need to pay them any additional fees for their service. While an insurance broker charges a fee for providing insurance policies, agents are paid in the form of a sales commission, which means their costs are included in the policy premium. So you can rest assured that you do not have to pay them extra.

There are several best insurance companies for independent agents one can approach for consultation; however, depending on one's needs, looking for independent agents through reviews and pages is possible.

Conclusion

If you ever wish to purchase a health insurance policy to ensure your family's medical and financial well-being, consider consulting with an insurance advisor for advice on the policy. So whether you are looking for a comprehensive policy, an affordable one that fits your budget, or whatever your specific needs are, consult an independent insurance agent for your policy and live your life confidently.