Question: What is the difference between an insurance agent and an insurance broker?

Answer: Insurance agents are typically representatives of the insurance company. Such agents are required to be licensed in the states in which they do business as well as with the specific companies they represent. While some agents do the majority of their insurance business with a single company (potentially even prohibited from selling other companies’ insurance products), many agents can be licensed with more than one carrier and therefore can sell from all of those companies.

In contrast to an insurance agent, an insurance broker represents a client. Brokers have specific bonding requirements in the state(s) in which they are licensed. The broker will typically represent multiple companies at the same time.

Comment: In considering the purchase of life insurance there are many questions to ask your insurance professional. There are all sorts of considerations ranging from prices to product and everything in between.