One of the most important decisions in your insurance shopping process is who helps you. Here's what to know about different types of agents.
Captive Agents
A captive agent represents one insurance company exclusively. They can only sell that company's products.
- Pros: Deep knowledge of their company's products, direct relationship with the insurer
- Cons: Can only offer one company's plans - if a competitor has a better option for you, they can't show it to you
Independent Agents
An independent agent represents multiple insurance companies and can compare options across carriers.
- Pros: Can show you plans from dozens of companies, provide unbiased comparisons, find the best fit for your situation
- Cons: May not have the deepest expertise with any single carrier
How Agents Get Paid
Most health and life insurance agents are compensated by the insurance company - not by you. This means there's typically no cost to you for working with an agent. The plan costs the same whether you buy it directly or through an agent.
What to Look For
- Licensed in your state (and nationally, if you want someone who understands plans across states)
- Independent (unless you specifically want one company's products)
- Experienced with your specific type of insurance need
- Someone who educates you rather than pressures you