Independent vs. captive
Why Work With an Independent Life Insurance Agent
A captive agent represents one insurance company. I represent a dozen-plus carriers. Here's what that means for you, in plain terms.
- Companies represented
- CaptiveOne carrier's life insurance products
- IndependentMany carriers, compared side by side
- Whose interest the agent represents
- CaptiveContracted to sell one company's policies
- IndependentNot tied to one company; I recommend the carrier that fits from the ones I represent
- Price
- CaptiveSet by the carrier
- IndependentSet by the carrier — no added cost for comparison shopping
- Living benefits
- CaptiveWhatever riders that one carrier offers
- IndependentI compare critical, chronic and terminal illness riders across carriers, including term policies that include them at no extra premium. Any benefit paid early reduces the death benefit.
- If your health is complicated
- CaptiveOne set of underwriting guidelines
- IndependentCarriers view the same condition differently, so another company may rate you more favorably
- Products available
- CaptiveThe carrier's lineup (some don't offer indexed universal life, children's whole life, or larger final expense policies)
- IndependentTerm, whole, indexed universal life, final expense, children's and business coverage from whichever carrier fits that need
- Focus
- CaptiveAt multi-line agencies, life is often one product alongside auto and home
- IndependentLife insurance is all I do
| Topic | Captive agent | Independent · me |
|---|---|---|
| Companies represented | One carrier's life insurance products | Many carriers, compared side by side |
| Whose interest the agent represents | Contracted to sell one company's policies | Not tied to one company; I recommend the carrier that fits from the ones I represent |
| Price | Set by the carrier | Set by the carrier — no added cost for comparison shopping |
| Living benefits | Whatever riders that one carrier offers | I compare critical, chronic and terminal illness riders across carriers, including term policies that include them at no extra premium. Any benefit paid early reduces the death benefit. |
| If your health is complicated | One set of underwriting guidelines | Carriers view the same condition differently, so another company may rate you more favorably |
| Products available | The carrier's lineup (some don't offer indexed universal life, children's whole life, or larger final expense policies) | Term, whole, indexed universal life, final expense, children's and business coverage from whichever carrier fits that need |
| Focus | At multi-line agencies, life is often one product alongside auto and home | Life insurance is all I do |
Want to see the difference for yourself?
The difference in practice
Four things that change when your agent can shop the market
- 01
Same premium, more choice
Life insurance premiums are set by the carrier and filed with the state. You pay the same premium for the same policy from the same carrier whether you buy through a captive agent, an independent agent, or online. The only thing that changes is how many options you get to see.
- 02
Underwriting is not one-size-fits-all
One carrier may rate well-controlled diabetes as standard; another may decline it. One treats a past cancer as fine after five years; another wants ten. An independent agent can often identify which company is likely to view your history most favorably.
- 03
Living benefits differ enormously
Some companies' "living benefits" are just access to cash value. Others include critical, chronic and terminal illness riders on term policies at no extra premium. You can only compare that if you can see more than one carrier. Keep in mind: any living benefit paid out reduces the death benefit.
How living benefits work - 04
Life insurance is all I do
I don't sell auto or home. That means the conversation is about your family and your coverage, not about bundling, and I stay current on a product line that changes every year.
Straight talk
How I’m paid
I’m paid a commission by the insurance company that issues your policy. You never pay me a fee, and the commission doesn’t change your premium. Commission rates do vary by carrier and by product type, so I tell you up front when they do and recommend based on fit, not payout. If the coverage you already have is the better choice, I’ll say so.
Does it cost more to use an independent life insurance agent?
No. Premiums are set by the insurance company and are the same whether you buy through a captive agent, an independent agent, or directly. Independent agents are paid by the carrier that issues the policy.
Which companies do you work with?
I'm authorized to sell policies from many life insurance carriers. Several specialize in term with living benefits, in final expense with health questions instead of an exam, or in indexed universal life. Which ones I quote depends on your age, your health and what you want the coverage to do. I name every carrier I quote, in writing, so you know exactly which company you'd be buying from.
I already have a quote from a captive agent. Will you look at it?
Yes. Email it to me at walorztina@gmail.com, or just tell me what you were quoted. Please black out policy numbers, Social Security numbers and health details first. I'll run the same coverage through my carriers and show you the comparison in writing. If your existing quote is the better fit, I'll tell you that.
Can you help if I've been declined before?
Often. A decline from one company is not a decline from all of them. Carriers treat conditions such as diabetes, high blood pressure, past cancer or mental-health history very differently. Some policies use health questions instead of an exam (simplified issue). For the hardest cases there are guaranteed-issue policies, which typically ask no health questions. Keep in mind: they usually have a two- or three-year graded benefit period. If death from natural causes happens in that time, they pay a reduced benefit. They also offer smaller face amounts (the amount the policy pays).
How final expense insurance worksLet's talk
Already have a quote? Send it over.
Use the form to tell me what you were quoted, or email the quote to me at walorztina@gmail.com. Please black out policy numbers, Social Security numbers and health details first. If your quote is the better fit, I'll tell you.