Broker vs. Captive Agent

Insurance Brokers in Canada/Ontario
A broker works in the insurance industry but is not affiliated with any insurance company. They are independent and represent their customers, both consumers and businesses. They solicit quotes from numerous insurance companies in order to find the best insurance at the best price for their clients. Once they have solicited numerous quotes, they consult with their client to make a final decision. Brokers cannot write or bind insurance policies; the insurance company will provide the policy when a coverage decision has been made.

Benefits of working with an Independent Insurance Broker in Canada (Life Protection Canada Inc.)

• Shopping around for Life or Health Insurance quotes Canada/Ontario yourself can be extremely time-consuming, confusing & utterly frustrating. An Insurance Broker is a specialist in the Insurance Field and we do the shopping for you to save you time & money.
• An Independent Insurance broker will answer any questions or concerns you may have and will offer helpful advice and recommendations to you. An Insurance broker will provide you with many more options/solutions than a Captive agent from one specific company. Brokers are familiar with the various Insurance products offered by different companies and can compare rates for you to see what the best options are for you & your family.
• An Insurance Broker is not only an expert in knowing what to shop for and where to shop, we can negotiate with the Insurance companies on your behalf.
• You don’t have to worry about Insurance, leave it in our hands and we will take care of the rest at no charge to you.
• An Insurance broker offers a long lasting relationship. This means that you get professional/personal advice and support. You have an experienced insurance professional on your side with your best interests in mind.
• Unlike an agent with one specific company, an Insurance Broker deals with various Insurance companies, not just one, and we can therefore find you the best value for your money.
• Insurance Brokers are well qualified & educated, and must meet very high professional standards. Life Insurance Brokers in Ontario are governed by the Financial Services Commission of Ontario and are required to complete 30hrs of continuing Education credits every 2yrs in accordance with the harmonized continuing education standard. Many Agents are also Financial Planners and are dually licensed in the Insurance & Financial fields.

Captive Life Insurance Agent (Primerica etc..)
A captive life insurance agent (an Agent working for one specific company) has a direct relationship with the Insurance carrier, which means their interest is usually with the company they represent. They are limited in what they can offer to the consumer since they are representing one specific company. A captive agent is only allowed to sell his/her own company’s products. Insurance companies that employ captive agents generally charge higher premiums than do insurance carriers employing independent brokers. Captive agents do not have the ability to shop around for you and in some instances may not offer the product best suited to your needs due to this fact. A Life Insurance Broker usually has no such contract or obligation to the Insurance companies they represent, meaning that their interests or intentions are more directed towards getting the client the most suitable & affordable Insurance policy for their short term & long term needs.

Who Pays a Broker?
A broker is paid by the insurance company when a policy is put in force. A policy through an Insurance company will be the same price whether it’s purchased through a website, a Broker or a Captive Agent.

Conclusion
Working with an Insurance Broker is by far the better option and most popular choice for Consumers today.