Everyone wants to secure his or her amenities. The best way to do that is through insurances. Insurances secure out a life for a better future. Everyone wants to be in the hands of a safe insurance company who looks up to him or her positively in times of distress. However, no company is perfect in caring for all its customers. Hence, the insurance company gives this job to the agents to help maintain the required help an individual require from the company. There are two types of agent available on the market that would help us with the insurance. Both of them are discussed to your understanding level and you can differentiate both later.
A captive agent is one who is assigned to work for only one insurance company. There are not allowed to work for any other company other than that particular company. They may be a full-time employee of that company and have their personal cabin or be a part-time or on a contractual basis in that company. These agents have full depth knowledge about all the contracts and insurances of the company.
The captive agent is contracted to develop business for the parent company. They are to sell the products of the company and may have to full-fill a target within a limited time. These usually end up with the captive agent to sell the products by any means without considering the choices and requirement of the clients. Hence, a captive agent looks for his profit and not for the profit of the client. He moreover has no idea about any other insurance company’s products. He is limited to his company. This makes the customer have a narrower hand over the best deal in the market.
An independent agent is opposite to captive agents. They represent several companies in one go. They are independent and have in-depth knowledge of all the insurances of all the companies. He can, therefore, look for the best possible option for his client. This helps the clients to get a wider view of all the products and choose one of their choices.
These agents work for themselves and earn their profits by commission from selling the products. They keep up their own records and details. The agent here is not bounded by any authority to limit the number of policies they are to sell. Therefore, they sell bonds according to the requirement of the clients, because of the wide variety of option that is available. Any policies they sell they are going to make profits from the commission.
The difference makes you clear that the independent agent is far better than the captive one. Anyway, choose the one that suits best according to your requirement. Both have its advantages and disadvantages. To search for the best agent to visit our sites.