Benefits to being an Independent Agent

It’s not unusual to wonder whether switching from being an independent agent to a captive agent is the right move. However, before making a change, we suggest that you thoroughly consider the pro’s and con’s to each scenario. Below are just a few of the benefits to being an independent agent.

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What’s the difference?

Captive agents work exclusively with a single carrier or insurance company, while independent agents are able to contract with as many carriers as they choose

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Benefits to being an Independent Agent

One of the biggest benefits of being an independent agent is being able to offer your clients multiple options. We all know that no two insurance plans are the same, especially when it comes to Medicare. Being able to offer multiple plans from different carriers increases the chance of helping your client find a plan that suits their specific needs. Because you put them in the right plan the first time, you will see a decrease in the number of lost enrollments. In the future, when rates go up, or an unfavorable plan change occurs, your client will turn to you for help instead of shopping elsewhere.

Another benefit for independent agents is having control over your own business. Captive agents are bound to their parent carrier and must abide by that carrier’s rules and policies. This can include how you market your business. Independent agents can make their own decisions about how their business advertises and operates within the Medicare marketing guidelines, including the benefit of making your own hours and work schedule. You can also set your own sales goals with no need to worry about set quotas.

Additionally, captive agents don’t always have the support they need. Independent agents have the option of using an FMO to help with their training, back-office support, marketing resources, and more.

Independent agents often see higher commissions on products they sell. Unlike captive agents, they are able to shop around and pick what plans they offer and what commissions they are eligible for. Of course, being able to offer your clients more choices should increase the chance of closing more sales.

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We understand that being an independent agent is not for everyone. If Should you choose to become a captive agent, and later realize it wasn’t the right move for you, many carriers have a quick and painless release process. CareValue is here to assist you every step of the way to becoming an Independent Agent again!

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