Life Insurance: Should You Work with an Exclusive Agent?

Buying life insurance can be done in a number of different ways. Many people decide to work with an exclusive agent. This means that the agent, acting as an independent contractor, operates a branch of a larger insurance company.

Benefits of an Exclusive Agent

The main benefit of working with an exclusive agent is the feedback you will receive and the knowledge you will have access to. Although exclusive agents work on their own, they have the backing of an insurance company.

Drawbacks of an Exclusive Agent

When you work with an exclusive agent, you are going to receive quotes only from one provider. As a consumer, this should concern you because you never know for sure if the policy is competitive in comparison to what the rest of the industry is offering.

Additionally, an exclusive agent will do whatever she can to make a sale. Remember, an exclusive agent doesn’t act the same as a broker. If you don’t purchase a policy from her, she makes no money.

There are pros and cons of working with an exclusive agent. If you are shopping for life insurance, consider all your options and then decide if this type of agent fits in with your plan of action.

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