A life insurance broker is someone who is not directly employed by an insurance company and instead solely works on behalf of the client. If you’re watching a TV commercial and it’s referring to an “insurance agent” this is typically a “captive” agent. A captive agent represents a specific insurance company (think: Allstate, State Farm, Progressive, GEICO).
A captive agent can only sell life insurance policies from the company they represent. A life insurance broker has the ability to shop around to all the companies they are contracted with. This is the greatest benefit of working with a good quality life insurance broker.
Why You Should Use a Life Insurance Broker
Not all life insurance brokers are created equal. The following reasons as to why you should use a life insurance broke pertain to Quotacy in particular. Quotacy is a life insurance broker and can help you find affordable life insurance.
Life insurance brokers are independent
As mentioned earlier, captive agents represent specific companies. Brokers are independent and won’t try to push you toward one specific insurance company. They are able to offer you multiple different types of policies from multiple different life insurance companies.
You also don’t have to be worried about being pushed toward a specific carrier or product simply for a higher commission. Quotacy (a broker) employs agents who work on salary—not commission. You can comparison shop and apply for life insurance through Quotacy without worrying about being upsold simply because a different product may provide a better commission.
Brokers can comparison shop for you
Because Quotacy works with over 25 top-rated life insurance companies, you can buy confidently knowing you’re getting a great price from a financially stable insurer. Through Quotacy, you can see a range of term life insurance quotes instantly without giving away any contact information. After you choose a policy and apply online, your Quotacy agent double-checks that the policy is the best match for you. This is especially beneficial for individuals with any risk factors, such as a medical condition.
» Compare: Term life insurance quotes
There are many, many life insurance companies out there and not all of them underwrite risk factors in the same way. Some are more lenient with certain conditions than others. How an insurer treats risk factors that pertain to you will directly affect your final premium.
Let’s look at a hypothetical example.
Your neighbor is a captive insurance agent for Company XYZ. You trust your neighbor and decide to apply for a life insurance policy with him. Company XYZ is a great company, but you take anxiety medication. Because of this, Company XYZ is going to charge you high premiums for coverage.
Because your neighbor is a captive agent, he can’t shop around to other insurance companies for you to see if a different company is more lenient with an anxiety disorder. If you want to buy through your neighbor, you have to go with Company XYZ, even though you could save money elsewhere.
If you apply through Quotacy, your agent will see the anxiety condition listed on your application and double-check that the insurer you chose through our online process is going to give you the best possible price. If a different insurance company is a better match for you due to anxiety, your agent will contact you with these additional options to set realistic expectations upfront.
How to Apply For Life Insurance Through a Broker
This is the easy part. Our online life insurance quoting tool allows you to instantly compare term life insurance quotes and guaranteed universal life insurance quotes without needing to give away any contact information. This means you’re free to window-shop in peace without getting inundated with sales calls and emails.
Compare your options and when you’re ready to move forward, apply right online. As you’re completing the online submission, include as much information as you can regarding your risk factors. This helps your Quotacy agent match you to the best life insurance company.
» Compare: Term life insurance quotes
In the screenshot below, you see an example of the Anxiety section of the online application. If you have been diagnosed with anxiety, the more information you can provide, the better your agent can shop and advocate on your behalf to find you the best price possible.
If you don’t have any medical conditions or lifestyle issues (example: criminal history or driving violations), your application should go through relatively smoothly. But please be prepared for the process to take longer if you have a medical condition or lifestyle risk factor because the insurance company will need to order health records and their evaluation takes time.
The longer process time isn’t a result of working with a life insurance broker. The process would take a bit longer no matter where you apply. The benefit of choosing Quotacy is that you can feel confident you’re getting the best price on your coverage. If you have a medical condition or lifestyle risk factor, your agent shops around to all of our insurance companies to make sure you’re matched with the one that will offer the best final rate.
If you’re interested in getting a life insurance policy, start the process by running free term life insurance quotes now. To learn more about the process from start to finish, read about the life insurance buying process here. Quotacy is a life insurance broker and our agents are ready to help you protect your loved ones with life insurance coverage.
About the writer
Natasha Cornelius, CLU
Senior Editor and Life Insurance Expert
Natasha Cornelius, CLU, is a writer, editor, and life insurance researcher for Quotacy.com where her goal is to make life insurance more transparent and easier to understand. She has been in the life insurance industry since 2010 and has been writing about life insurance since 2014. Natasha earned her Chartered Life Underwriter designation in 2022. She is also co-host of Quotacy’s YouTube series. Connect with her on LinkedIn.