Independent agent

An independent agent is a licensed life insurance agent appointed with multiple insurers instead of working for just one. Unlike a captive agent, who sells mainly one company's policies, an independent agent can quote several carriers for the same applicant and place the case where the price or underwriting is most favorable. Many independent agents get their carrier contracts through a brokerage general agency, or BGA.

The advantage shows up most in underwriting. Insurers treat conditions like diabetes, sleep apnea or a family history of heart disease differently, so shopping one medical profile across companies can mean a better rate class. Say, hypothetically, one insurer offers a standard rating and another offers preferred for the same applicant: the premium difference over a 20-year term could add up to thousands of dollars.

Independent doesn't mean unpaid by insurers. Agents earn commissions from the carrier they place business with, and commission levels differ by product and company. The label also says nothing about an agent's skill. Ask which carriers they can access and how they're paid, and verify their license with your state insurance department. See captive vs independent life insurance agents, how life insurance agents are paid and how to check that an insurance agent is licensed.