If you are shopping for life insurance coverage, then you have probably heard the term “insurance broker,” but maybe weren’t quote sure about what a broker does. There is a pretty big difference between a life insurance broker and a life insurance agent. One of the main differences is that an agent is affiliated directly with a company so they are usually obligated to only offer that particular carriers’ policies. Brokers, on the other hand, work with dozens of companies. They act as the middleman between the carrier and the customer. They can help you by providing you with the information to choose the carrier with the absolute lowest rates for your unique needs.
Life insurance brokers have actually made it much easier and much for affordable to obtain a policy. An experienced broker has knowledge about the underwriting requirements of standards or many insurance carriers. They use their knowledge to point you in the right direction to find a company that will approve you, but most important, approve you at the lowest rate. Brokers are often paid a commission by the life insurance companies, but their commission does not affect your rate, so a broker can’t charge you more for your life insurance in order to get more money.
Rebating is strictly not allowed in most areas. Life insurance brokers may make it easier for you to purchase a life insurance policy, but there are still brokers who do rebates. Rebating occurs when an insurance broker will lower their commission rates and pass the savings on to their customers. This may seem very enticing but it is not a very wise move when it comes to purchasing insurance. The chief reason behind this is because it is illegal. Not only it is illegal, but the rebated amount also has to be declared as taxable income.
If you need to get a life insurance policy and you want to compare multiple quotes, then start your search here. You can compare dozens of different companies and even speak with an agent if you’d like.
| Zip Code: | ||