Independent Insurance Agent or Captive: Can’t decide between the two?
If you are newly 214/215 licensed (congrats!), the first major decision you will have to make is critical… Should you be a Captive or Independent Insurance Agent?
Although choosing the road best suited for you can be daunting, it is extremely important as it sets the stage for your career path as a Life Insurance agent.
Let’s start by first explaining the difference and pros/cons between Captive and Independent Insurance Agents?
What is a “Captive” Insurance agent?
Captive means you are employed by one carrier or agency and are limited to selling just the products they offer. There are many captive agencies to go with, however, it just depends on what’s available to you in your market.
PROS:
You are a salaried employee with benefits.
You have a schedule and set hours to work.
You’re likely provided leads at the agency’s expense, but that varies by agency.
Likely work in an office setting with peers.
Regimented training modules and programs.
Brand recognition and clout if you partner with a well-known carrier/agency.
CONS:
You are likely one of many employees. As a result, you may get lost in the shuffle.
Limited range of products to sell, which means you have fewer options to offer your clients. Therefore, you may lose business due to underwriting requirements.
Constantly navigating through company politics and bureaucracy.
Commission rates are determined by the agency factoring in overhead & expenses.
Residual commissions are paid directly to the organization/agency – not to you.
You are not vested (meaning, you do not own your client list as it belongs to the organization).
What is an “Independent” Insurance agent?
Being an independent agent, or non-captive, means you are a “free” agent without limits of resources or product offerings as you are not tied to one particular carrier.
PROS:
You have many more products to offer your clients depending on their needs and finances.
Autonomy – You are your own boss and set your own schedule.
Your clients are yours and fully protected.
You are vested quickly and don’t have to wait for commissions. Unlike many agencies, you are fully vested from day one.
Starting at higher commission levels with greater earning potential.
Personalized, 1:1 training and coaching arming you the tools for success.
Advanced, as earned, and residual commissions are paid directly from the carrier to YOU.
Carrier perks & incentive trips offered directly to agents if you meet their respective revenue goals.
Unlimited earning potential and no limitations to how you drive revenue, create leads, and build your business. If you have an entrepreneurial ambition, you can create your own set up that won’t be limited by rules, structures, limits or company policy.
Independent agencies have proven systems & processes in place, but also support and promote creativity.
CONS:
Limited success if you don’t have a disciplined work-ethic.
Start-up expense may be your responsibility. Therefore, some agencies, like Pivotal Insurance, offer creative ways to offset costs and provide lead financing during the ramp up phase.
Lack of an office setting with co-worker interaction (which can also be a Pro!).
You are financially responsible for lead costs, however, it’s off-set by higher commissions on the Independent side.
Potential risk of limited support from your upline (which is NEVER an issue at Pivotal Insurance Agency).
At the end of the day, neither one is bad or wrong… You just have to evaluate your needs and long-term goals to determine which route is best for you. Although it can be overwhelming, you don’t need to do it alone. If you need help weighing your options between Captive or Independent insurance agent or figuring out which are the best life insurance companies for Independent agents are near you, reach out at 561-412-5500 or Pivotal Insurance.
About Pivotal Life Insurance
Pivotal Life Insurance is a family owned, independent insurance agency that focuses on income protection and family security through Life Insurance products (Term Life, Whole Life, Final Expense), Mortgage Protection and Annuities. With a range of product offerings, we accommodate the varying needs of our clients through resources provided by the nation’s top rated carriers. Although we are headquartered in South Florida with a branch in Maryland, we service most of the United States as our agents are licensed throughout the country. Pivotal Life Insurance is one of the fastest-growing agencies and we pride ourselves in putting you, our customers, first.
Insurance Is Pivotal. Cherish what’s important.
For more information or if you’d like to join the Pivotal family, visit www.insuranceispivotal.com or call at 561-412-5500.