captive vs independent insurance agents

Captive vs. Independent Insurance Agents

captive vs independent insurance agentsLet’s simplify the process of buying life insurance and get the best life insurance rates possible. Ultimately you are going to buy a policy from an insurance company with an agent, but there are different types of insurance companies with different types of agents representing them. Let’s look at the differences between captive and independent insurance agents.

You Need Life Insurance. Where Do You Turn?

There are a variety of ways to get a life insurance policy these days. You can turn to your local community. Maybe someone you know sells insurance of all kinds — life, health, auto, home and so on. You could just pick up the phone and talk to them about it — or set up an appointment and walk into their office for a face-to-face conversation. Even if you don’t know them personally, they’re local. That seems like an attractive option to many people, but is it the best option for you? Sometimes, yes. Other times, not so much.

Another way to purchase a life insurance policy is to go online. But that will likely provide more answers than you may be willing to deal with. Do you simply type “life insurance” into a Google search and hope for the best in picking from the 245 million results? Be serious, right? Even if you do find a result that seems like it might be worth looking into further, you will then need to do your research if you are going to get the best coverage at the best price. A lot of research. And that research means more time out of your day.

However you choose to look for a life insurance policy, you will need to speak with an agent to help you through the process. There are two types of agents: captive and independent.

Captive vs. Independent Insurance Agents

A captive insurance agent sells insurance for one company. That means they are going to give you one quote. So, that’s pretty much the end of the road. You don’t have any other options to compare their quote or their coverage to. It is what they say it is. You go ahead with purchasing that policy and you get on with your life.

An independent agent, on the other hand, could represent 100 or more different insurance providers. See where this is going? In a sense, it’s 100 vs. only one. That’s not to say that a captive agent can’t get you the best coverage at the best price, but the odds are not in your favor.

Bob Young, a licensed agent with True Blue Life Insurance, an independent agency, said:

“Usually, captive agents are selling one company’s products. Due to the influences created by costs to market and the expenses to maintain the corporate structure, their products will likely be more expensive. These companies are also typically slower to react to market changes. And there are hidden costs to clients because their choices often lack the features and flexibility that are present in policies that are open to be sold by independent agents.”

An independent agent is going to have different options for you. They can speak with you about your particular needs and based on their understanding of all the insurance providers at their disposal, shop your specific needs with a variety of providers to make the best recommendation and find the best possible plan for you. Because not all insurance providers are created equal. Each insurance company is going to have different rates, different liability limits, different types of coverage. It’s important to know about all these differences and the variety of options you have available to you.

Ken Kaufman, also a licensed agent with True Blue, said:

“There is no one product that fits all scenarios. That’s why working with True Blue Life Insurance makes sense.”

It doesn’t just stop with buying a policy, however. An independent agent also provides an advantage when it comes time to renew the policy.

Let’s say the captive agent does come up with the best plan at the best price for you. What happens when it comes time to renew that policy and they have raised their rates? You’re stuck with that rate. There is no comparing it with anything else because they still only represent one company. Maybe they will offer to cut some of your coverage in order to lower the rate. That’s a problem — for you.

On the other hand, when the renewal process comes up with an independent agent, they can “shop around” all over again and get the best coverage at the best price, just like they did the first time.

Kaufman continued:

“I can shop the market to give my clients the best options available based on their needs and budget. In fact, we can shop your life insurance needs with close to 200 different insurers to get you the best deal.”

What Kind of Life Insurance Do You Need?

Whatever kind of life insurance you are looking for — for whatever your particular life situation — there is a policy out there for you. An independent agent can help you find that policy by speaking with you about your needs.

Are you a smoker? Do you have cancer? Are you diabetic? What if you have sleep apnea? Or bipolar disorder? Maybe you are in perfect health. For each and every situation life throws at you, there is very likely to be a life insurance solution specifically for you.

True Blue Life Insurance is an online, independent life insurance agency that provides you with instant term life insurance rates and a streamlined life insurance process to get you insured as quickly and as easily as possible. True Blue specializes in:

  • Medically underwritten life insurance
  • No-medical-exam life insurance
  • Final expense life insurance

You can get a free, instant, term life insurance quote without revealing any personal information. From there, the finest minds in the life insurance industry can help to get you insured in whatever way best suits your style — over the phone, by mail, or through the internet. It’s all about what works best for you.

Bob Young used to be a captive agent, so he knows firsthand the drastic difference between being a captive agent and an independent agent and what it ultimately means to you, the consumer.

“From a former captive agent’s perspective, I was often trying to fit the client into a product rather than fitting the product to the client,” he said. “It usually fell short of satisfying the needs of the customer and it created a constant personal ethics crisis for me. I was forced to offer products that I knew were inferior for reasons of pure survival.”

Let’s Talk About Trust — and Customer Service

True Blue Life Insurance believes in being honest, transparent, trustworthy, efficient, and friendly, representing only the best life insurance companies without bias towards any one company. Your information is always kept confidential and is never sold nor distributed to other life insurance agents or third parties.

Also, nobody is quicker. The True Blue business model is built on providing instant life insurance rates to get policies issued without any wasted time.

True Blue can provide instant term life insurance quotes without any of your personal contact information. By representing over 40 of the top life insurance companies, you will consistently save over 50 percent on your insurance premiums.

Are you concerned that you won’t be getting personal attention, that you will be just another computer-generated customer? Don’t be. You will have the opportunity to build a relationship with your True Blue agent and the staff. You will be treated like family. That’s because True Blue agents are more than just agents. They are a solid community of folks that share the same values, goals, and objectives of providing a level of excellence in customer service that is unsurpassed by any other agency.

With True Blue, you have a friend to help you get your life insurance. Call on us today, 866-816-2100.

About Brian Greenberg

Brian started his financial career working for Metlife Insurance Company. Using his internet skills, he decided to pursue a better way to provide customers with life insurance by building a quoting engine and underwriting fulfilment process. With True Blue Life Insurance, Brian is licensed to sell life, health, and annuities throughout the United States. He is committed to constantly improving the online life insurance process.
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