What Full Service Means

Oct 18, 2018

According to Investopedia a full-service broker is, “a licensed financial broker-dealer firm that provides a large variety of services to its clients, including research and advice, retirement planning, tax tips, and much more.”

A full-service broker provides multi-carrier options so you get a full market analysis, bringing you the highest quality options while also keeping pricing in mind which generally result in the best value and better fit for the client. A full-service broker, is an advisor that provides clients with a single place where they can research and get educated on all of their Business, Individual, Benefit planning, and Retirement needs.

When you purchase insurance, you have a few options:

  • Invest your time to research and buy online from various providers
  • Work with sometimes up to 8 different agents to help you with your different insurances OR
  • You can utilize a Full-Service Broker for their services and advice

When a person buys insurance themselves they might be saving some time but they are losing tremendous value. The cost of insurance is the same if you buy it from the carrier or if you purchase it through a broker because brokers make money off of commissions from selling insurance products. The price is the same to the consumer the only difference is when someone purchases insurance on their own, they are losing the benefit that comes with the financial advice of a broker. A benefit that was built into the cost of their product.

Types of Brokers and Agents

When looking into insurance there are two types of brokers/agents, captive and independent. Understanding how these different brokers operate is essential when you purchase insurance.

Captive

Captive agent/broker only works for one insurance carrier further, they are obligated to only sell that particular company's product. These types of agents have a close relationship with their parent company. This allows the agent to adjust pricing and policies in an uncomplicated manner. With that being said the primary focus of a captive insurance agent is to develop business for their parent company. While they are flexible with their given options, they are limited to one company and that company's products.

A captive agent agrees to only sell that carriers products and in return, the insurance company compensates their captive agents with allowances for business operations as well as commissions. Captive agents usually have an in-depth knowledge of their particular company’s products, however, they cannot help anyone who does not qualify for those products. The influence of the parent company is another topic that raises concern. Sometimes the parent company will pressure their agents to sell particular policies or meet certain sales goals. This could cause the agent to put their interest above the client's interest.

Independent

An independent agent/broker represents several insurance companies. The agent/broker is independent of all other companies he or she sells. An independent agent can look at multiple policies and multiple companies to see what is truly best for you and your needs.

An independent agent is compensated through commissions paid by the insurance company. The insurance company has little to no influence over the sale goals of independent agents. If there are price increases within policies the agent can simply “re-shop” for better-priced policies either from the same company or a different one. The benefit of independent agents is that they can work with multiple companies and policies to truly find what is best for their client.

For a company to TRULY be full-service it must be independent and not limited to one company and their specific policies. An independent agent will be able to service multiple lines of insurance from multiple companies that best cater to the individual client needs.

What a full-service insurance company can do for you

The insurance industry is complicated and constantly changing. It can be challenging to understand what is best for you, your family, and future financial needs. Having a Full-service insurance broker saves you time, money, stress, and most importantly keeps your financing safe. A full-service insurance broker is a one-stop-shop for financial advice and insurance consultation.

One Stop Shop

A full-service insurance broker will be able to get you covered for all of your insurance needs. If you develop a good relationship with your insurance broker than they can better understand your needs and get you better coverage. Having one broker that handles all of your insurance policies will allow them to fully understand your situation, financing, and most importantly what you need to protect. If any claims arise you will only have to call one office that you know and trust.

Financial Advice and the insurance industry

As stated above the insurance industry is constantly changing. We have seen tremendous change with the passing of the ACA and new regulations being put on healthcare and other lines of coverage. These changes are hard to stay up-to-date with and they can get quite confusing if you are not familiar with the insurance industry and terminology. Having someone that is well versed in this complicated language and knows what is happening in the industry will save you a substantial amount of time and money.

PFSI Advantage

PFSI is a full-service insurance broker specializing in detailed comparison and analysis of available products from virtually all carriers. We work for our clients and not the carrier. At PFSI we are financial experts as well as insurance specialists. Our primary goal is superior customer service and that is what sets us apart from other brokers. PFSI will not only help you with insurance needs but we can also cater to payroll, tax-tips, retirement planning, student debt, and much more. We want to make insurance easy for you. We have expert advice on multiple policies, from multiple companies, and you can service all of your insurance needs through us.

Thank you for reading our blog and we hope you found this information usefull

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