Life Insurance: The Difference between Consulting Agents and Brokers


The significant difference is an Agent is usually an independent salesman that generally works with different insurance companies to give the client the best possible policy while the Broker works for a particular company. Not because I am one myself BUT because an agent can look out for your benefit by providing different quotes, types, riders that are available (explained later), AND pros/cons regarding each insurance company. There are also Insurance consultants that you pay but to keep things simple, see an Agent.

 Types of Policies:

There are two main categories: Term and Permanent Insurance. I will explain them at a glance for you to make the best possible choice for you and your loved ones. Once you speak to an agent you will have enough knowledge by this article that you will know what questions to know and ask if your agent is right for you). Term Insurance: A temporary policy in which the beneficiary is paid only upon the death of the insured (you) within a specific period (hence the word “Term”). Term insurance does typically not accumulate cash value (explained in permanent protection) but can be purchased on top of your permanent policy (for those that may have coverage already):. Convertible Term: Ability to convert the policy to permanent. Some GOOD procedures require no medical exam, driver history, or hazardous avocations at a certain point to turn to permanent coverage guaranteed with all the benefits that permanent insurance policies have to offer.

Renewable Term: Able to renew a term policy without evidence of insurability.

Level Term: Fixed premiums over a specified period than increases (great for those that are young adults and expect within ten years to have an increase in pay).

Increasing/Decreasing Term: Coverage decreases or increases throughout the term while the premium remains the same.

The Types of Insurance Policies Covered by Consulting Firms

Group Term: It is usually used for consulting associations or employers. This covers several people to reduce premiums. Permanent Insurance: Just as the name states, this provides investment opportunities throughout the lifetime of the insured. Few policies may have in general withdrawal tax-free agents to help them. Consulting specialists should consider Permanent Insurance if they have a lot of employees and don’t mind an increase in premiums (the amount you pay) by a few dollars compared to term. Traditional Whole Life: Audit firms are supposed to pay a fixed amount of premium to be covered for their entire life which includes accumulating cash value. Single-Premium Whole Life Insurance: Whole life insurance for one lump sum premium. Usually that one lump sum is enormous to get a significant audit firm service quality benefit.