What is an Insurance Broker

Glossary - Letter - B What is an Insurance Broker? A broker (or insurance broker) is a person who is licensed to sell insurance and typically works with multiple insurance companies offering a variety of products to a customer. As opposed to an insurance agent, who offers the products of only one company, an insurance broker is able to compare numerous products of the companies he/she works with and thus is often seen as a more consumer-friendly option. Some insurance companies work with insurance agents only; their products are not available through the brokers (e.g. State Farm). A broker is typically rewarded through a commission from the sales. When working with an insurance broker, it is important to understand how many different providers a broker works with as well as the insurance products he/she can offer.

Insurance Tip:

Insurance broker can often get better rates: How often would you cook something without a cooking book? Similar case with a life insurance broker. Home insurance and especially auto insurance are commodities and can be often got directly from the provider, life insurance has many underwater stones and little-known aspects. Life insurance broker can navigate through them and often get lower rate than you would get on your own (e.g. because brokers may have some air to offer discounts on insurance products due to the large insurance volumes they make)

Insurance Broker: Expert Opinion

An insurance broker is someone who works for the policy owner. He’s distributing the products of different insurance carriers and he is independent. What I mean by independent is that he or she finds the policy that is best for you.    After determining your needs, for example, a $350,000 term 25 policy, which would mean the premiums are level for 25 years, your broker would then search the market to find you the very best deal. Now, he or she could also go a step further. If you have any health issues, he could determine which insurance company is best for that specific health issue by talking with the various underwriters.  

Our Publications related to Life Insurance

Life, Disability and Critical Illness Insurance: Do Men or Women Pay More?

Life, Disability and Critical Illness Insurance: Do Men or Women Pay More?

Introduction There were many articles written about men paying more for car insurance than women, but what about other insurance types? Do women always benefit from lower insurance rates? We took on this question and systematically went through various life insurance, disability insurance, and critical illness insurance by consulting with professionals who had the answers. […]

Introducing a New Tool to Find Out What Issues Canadian Face with Their Insurers

Introducing a New Tool to Find Out What Issues Canadian Face with Their Insurers

The arrival of COVID-19 has pushed Canadians, more than ever before, online for finding and applying for insurance and banking products. It is not easy, though, to make the right choice without knowing if a particular insurer will be there when you need them the most. As the largest Canadian review platform with thousands of […]

If Life Insurance Plans Were Cars: How to Look at Various Types of Life Insurance in Canada

If Life Insurance Plans Were Cars: How to Look at Various Types of Life Insurance in Canada

Overall, insurance is considered a somewhat boring, though necessary, topic. On top of that, it is not always clear – there are plenty of various types of life insurance products in Canada that work differently. I decided to explain it in a bit of a different and funny way – I hope that you will […]

Insurance Companies in Canada – Easily Explained

Insurance Companies in Canada – Easily Explained

The life insurance landscape in Canada is quite unique. The infographic below shows all the key players and their size, reflecting their assets under management (AUM) based on life and wealth segments of the company’s business. scroll further down to continue reading In Canada, the majority of insurers fall under the umbrellas of three large […]

What is Travel Insurance, and Why Do I Need it?

What is Travel Insurance, and Why Do I Need it?

By RateHub.ca When it comes to budgeting for your vacations, travel insurance is one of those things that’s often overlooked. It’s easy to understand why: we have publicly funded healthcare in Canada, so many people assume that benefit applies to wherever we travel in the world. Unfortunately, that’s not the case. The cost of seeking […]