Glossary
Insurance broker
A licensed insurance professional who can shop policies from many insurers on a buyer's behalf, typically paid by commission from the chosen insurer.
Also called: life insurance broker, broker
An insurance broker is a licensed professional who places coverage with multiple insurance companies rather than representing just one. In life insurance, the word is often used loosely for any independent agent who can quote several carriers. Some states issue a separate broker license and treat a broker as representing the buyer, while an agent represents the insurer; others license everyone as a producer.
A broker gathers your health and financial details, compares rate classes and prices across companies, and submits the application to the insurer most likely to approve you at a good rate. Hypothetical example: an applicant with well-controlled type 2 diabetes might be offered standard rates by one insurer and a table rating by another; a broker who knows each company's underwriting can steer the application accordingly.
Brokers are usually paid a commission by the insurer that issues the policy, so the buyer pays nothing directly, but commissions vary by product and company. That creates an incentive worth asking about, especially on permanent policies and annuities, where commissions tend to be higher. Ask which carriers a broker actually represents, and confirm the license with how to check that an insurance agent is licensed. Compare roles in life insurance brokers vs agents and captive vs independent life insurance agents.
Last reviewed October 4, 2026