When it comes to retirement, you have unique needs and objectives. Determining your financial requirements and the best means to achieve them is an important step. It’s critical to partner with the right financial professional – someone who is not only knowledgeable and experienced, but who can serve your needs with a versatility of financial solutions.
In the financial services and insurance industries, there are two types of agents and advisors: “independent” and “captive” parties. There’s a difference in the advice and products you can receive from both. If you’re looking for the right partner to help with your wealth planning needs, here’s some information which may help with your decision-making process.
Differences between Independent and Captive Financial Advice
- Works exclusively for one insurance company, obliged to give business to only that company
- Priority is to develop business for the parent company above all others
- Provided with office allowance, benefits package, and pension from parent company
- Starting resources are often provided by the parent company
- Parent company can prohibit cross-selling other insurance carriers, limiting options for the client
- Parent company can discontinue selling certain lines if unprofitable, resulting in loss of clientele
- Inability to refer customers to whom you cannot sell a policy
- A parent company pushes certain policies (example: whole life insurance policies) over others and requires agents to meet strict quotas at the risk of being terminated
- Represent multiple top-rated insurance companies to provide the best products as needed
- Freedom to sell multiple carriers without quotas
- Provide their own resources to start their business
- Freedom from strict regulations from a parent company to only sell one company
- Freedom to cross-sell other lines of insurance
- Ability to compare prices, products, features, and service among a variety of insurers
- Ability to sell a policy through another insurer if primary insurance carrier cannot write the policy
- Much larger product selection
In short, independent financial professionals can offer more independent guidance, more product options for different needs, and overall more independent solutions to the client. They’re not bound to just one insurance or financial company for the solutions they may offer.
What about Your Retirement Planning Needs?
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If you’re ready for personal guidance, we invite you to connect with an independent financial professional and request a no-obligation intial consultation. They can help you discover safe financial strategies for many goals, including retirement, income, wealth protection, asset preservation, estate planning, and other unique financial objectives. You can request a no-obligation personal goal discovery call at no cost or obligation to you.
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