Life Insurance Broker vs. Insurance Agent: What's the Difference?
Life insurance brokers and agents can help you buy an insurance policy. However, the difference between a life insurance broker and an agent in New Zealand is that the agent represents the insurance provider that employs them and helps sell policies from that single insurance company. Since the insurer remunerates the broker, they work for the clients who engage them and can assist people in looking at all their options. All at no extra cost.
Both insurance agents and brokers try to help people find insurance plans, but they work for different companies. An insurance agent works for an insurance company, while an insurance broker works for a client.
Agents and brokers can help you with many types of insurance, such as health insurance, disability insurance, business insurance, and more. Your choice between an agent and a dealer will depend on your needs.
What is a Life Insurance Agent?
An insurance agent represents one insurance company and sells their policies, as they are employed and work for that one insurance company.
Their job is representing the insurance company in the transaction while helping customers find the right policy. Some agents are registered financial advisors; others read from a script and don’t provide financial advice.
You are limited to purchasing the policies the insurance company sells, leaving you with fewer options. Negotiating the best deal, understanding and comparing the right policy for you, and lodging any claims are all things you need to take care of when you buy directly from the company.
What's a Life Insurance Broker?
A life insurance broker works with various insurance companies to help people find their best solutions. Unlike agents representing one insurance company, a professional broker’s primary duty is to help people manage their risk.
Using an insurance broker offers several advantages, often at no extra cost compared to buying directly from an insurance company.
With their experience and understanding of the insurance market, life insurance brokers can give you the right financial advice and answer all your questions so that you can choose the best policy for you.
They work with you to ensure the policy is suitable and make changes when your policy needs to be renewed. They can also suggest extra coverage to protect you in case your circumstances change or new insurance policies come out.
Is LifeCovered an agent or a broker?
LifeCovered is a registered financial advice provider that engages financial advisors to give financial advice tailored to your unique circumstances at no extra cost.
LifeCovered is a broker company that helps professionals, couples, and business owners look at all their insurance options so they can find the right policies for their needs. Together, we look at insurance solutions that fit your family’s or business’s risk management needs and are available for questions after we help you find coverage.