
Sign up & start saving!
Get our weekly newsletter for the latest in money news, credit card offers + more ways to save
With nearly 800 life insurance companies and thousands of policy options on offer in the US, choosing a life insurance policy can be a daunting task. A broker can potentially save you time and money by helping you to navigate the complexities of certain policies and guide you in the right direction. But their services come at a cost.
A life insurance broker represents you, the policyholder. They partner with multiple life insurance companies, and present you with the best possible options to suit your coverage needs and budget. Many brokers also help you to complete your life insurance application for a better chance of approval.
Typically, brokers work independently or at life insurance brokerage agencies — and they charge a fee for their services.
What’s the difference between a life insurance agent and broker?
These terms are often used interchangeably, but agents and brokers have different roles. A life insurance agent works for one or more insurance companies with the purpose of selling policies to those who need them. Life insurance agent responsibilities often include meeting a quote for the companies they work for.
In other words, the agent represents the company, not the buyer — while a broker does the opposite.
Brokers earn money through commission — a fee charged to you when they guide you through securing your life insurance policy.
Since a reputable and licensed insurance broker should be acting in your best interests, these professionals have a number of duties and responsibilities to follow.
Some of the key duties and responsibilities of an insurance broker include:
Finding the right coverage requires researching and familiarizing yourself with available plans on the market, which takes time. A broker can help speed up the process, and they have a wealth of knowledge about the insurers they partner with.
To decide whether to enlist a broker to help you get a life insurance policy, consider these factors:
Read online life insurance brokers reviews, and take the time to check out the brokers’ credentials as well as any case studies. You may even want to schedule a call or appointment with a shortlist of brokers to learn about their services and compare rates.
One of the advantages of finding an insurance broker through your circle of friends is the first-hand information and an honest review. It’s still usually a good idea to look up the broker’s credentials and do a bit of homework on them.
You can then ask life insurance brokers about the certifications they hold. Many hours of professional training won’t guarantee you the best experience, but it definitely ups the likelihood.
The National Association of Insurance and Financial Advisors (NAIFA) and Million Dollar Round Table (MDRT) are professional associations that require members to uphold a level of quality and follow a strict code of ethics.
Life insurance brokers can typically save you time and money when you’re seeking a policy. By doing a little bit of research to find a reputable broker who will work with your needs, you’ll have a professional by your side working in your best interest.
If you’re looking for a broker comparable to Vanguard, check out these five contenders.
You can pay for car insurance in Bitcoin, even if your insurer doesn’t accept it yet.
Here’s where to get financial help for yourself and your business if you’ve been affected by the storm in February 2021.
Learn cost-sharing terms to find out how much you’ll really pay for healthcare.
This fintech just branched out into low-cost life insurance — but its lineup is limited.
Get an incentive to meet your existing health and fitness goals with a discounted premium.
Find unusually low face values for a whole life policy, ideal for supplemental insurance.
Personalize your loved one’s memorial or shave thousands off of funeral costs with these ideas.
Learn your policy options based on the type of transplant and your health status now.
If you’re looking for a trading platform similar to Interactive Brokers, consider these five options.