As part of The Average Couple’s FAQ series, we’ll be answering the question “What is an Insurance Brokerage, and why is a broker better for me than a captive agency like State Farm, Allstate, Nationwide, Progressive, Farmers, etc.?
What is an Insurance Brokerage:
The first part of that question, “What’s an Insurance Brokerage?” is important to cover, because although most people have a general idea of what an insurance brokerage is, many don’t grasp how it functions. Plus, The Coverage Couple is different through the lens of insurance brokerages, because we’re not beholden to any ivory tower or “sales manager” somewhere. We work with and for our clients and families, and no one else! Unlike other investment and insurance brokerages or firms that report to layers of higher-ups in a pyramid hierarchy, we simply serve you — uninfluenced or pressured by middlemen of any kind.
An insurance brokerage, by definition, is a single outlet that provides multiple product options and solutions. The diversity of choice you enjoy as a client of an insurance brokerage that thecoveragecouple.com provides cannot be overstated. Think of it like this: You really want a new pair of running shoes, but aren’t sure what kind you want, and really don’t know what’s out there that might suit your needs.
When it comes to something as important as your feet, knees, and goals… would you rather walk into a store where one pair of shoes is on display under a spotlight in the middle of the floor, with a salesman confronting on you under the watchful eye of 10 managers elbowing him to pressure you into a purchase… or, would you rather visit a store with an entire department of qualified high-tech running shoe options, where an impartial professional expert with a passion for running assists you through the process by explaining advantages and disadvantages, to help narrow your choices based on your size, budget, fit, and future running goals to find the perfect pair? Although that question seems ridiculous AND obvious, option-A is unfortunately where many people, by choice or chance, end up finding themselves trapped in.
Based on what we’ve personally witnessed and the market research on a larger scale, seeking guidance from a captive company (the 1-pair of shoes example) is even worse than it sounds. When you walk into that store, the salesperson has an unavoidable undeniable bias built in, reinforced by their motivation to do one thing: Convince you that their ONE product is somehow THE product for you. That’s an unfair unbalanced and backward way to approach anything, whether it’s shoes, insurance, a home, etc.
Limiting yourself to the narrow selection of a captive insurer is like going to find a pair of running shoes at a cowboy boots store. Cowboy boots will never make sense or serve your INDIVIDUAL specific needs, no matter how convincing the salesperson is. But, if you never knew running shoes existed, you might end up fooling yourself into thinking you got a great pair of cowboy boots to run in, simply because you didn’t know better. In your mind, nothing else even EXISTS! That’s the reality of seeking unbiased counsel and fair cost comparisons at a company that has one product, and NO comparisons.
Imagine a judge sending the witnesses and jurors home, opting instead to ask the defendant if he’s guilty, That same logic applied to Allstate, State Farm, Nationwide, Farmers, Liberty Mutual, Progressive, or worse yet Primerica or American Income Life. What do you think each of those carriers would say about their life insurance and investment product? Here’s the big takeaway: Although it seems like this is a simple Column-A vs B choice, in actuality Column-A doesn’t even make it into the running! What we mean is while we’ve made the point that more options are better for both you and your family, that doesn’t mean the solution is to compare all those options (captive carriers) side-by-side to make the best out of a bad situation.
ALL of those Column-A carriers have hyper-inflated costs, and are priced within a few percent of each other — because they’re not competing for your business on the open market, they’re competing against each other. This form of price-fixing ensures you lose, and has been the reason the life insurance and investment industry has been given low marks for consumer confidence over the last century. Think of “Column-B” for “insurance brokerage,” because we compare up to 100 carriers who compete for YOUR business, and don’t have to pay for celebrity commercials, superbowl ads, Nascar stickers, and stadiums.
In review, The Coverage Couple have a wide variety and ability to objectively work to scour the industry for your unique needs, with full transparency. The reason for this is because more is better when it comes to choice, so we can ensure we do right by you, leaving no stone unturned! So the question might naturally be “Then why doesn’t every insurance brokerage just contract with every company?” There are 2 reasons for that: (1) Not every carrier offers what they consider to be a high-commission product, so they don’t even consider adding it to their lineup.
At The Coverage Couple, we focus on the product and NOT the profit! We don’t have a board of directors that report quarterly to shareholders. (2) At other investment and insurance brokerages their agents are easy come, easy go, treating this career like a test drive in a car they had no intentions of buying. What that revolving door mentality means is their motivation to learn the finer details of more than a few carriers (at most) is unrealistic. Again, at The Coverage Couple, we not only devote ourselves to mastering the newest solutions day and night, but the pillar upholding it all is that we truly enjoy helping others succeed financially! Enriching the futures of others is our calling. Besides, it’s fun when you do it right…
Everyone agrees it’s a lot easier to come up with a few dollars a month now, rather than thousands of dollars all at once later! Life insurance is, has been, and will continue to be the best standalone cure-all for solving life’s biggest problem BEFORE they become tragedy. You can take care of your future now by choice while you’re with your family, so your family doesn’t have to take care of it later by force, once you’re gone from them.
We commit to conducting deep investigative research for you, and would like for you to reserve time with us, without any cost or obligation. We’ll carefully listen, and then follow up with a proven, practical, custom proposal for your review. HERE is our official invitation to take part in The Coverage Couple Challenge, where EVERYONE WINS. Visit the Scheduling Page at thecoveragecouple.com to see how much we can save you on your existing coverage, or provide a financial risk assessment and needs analysis for your review if you’re unprotected and univested. We hope to hear from you soon, because your life is worth the investment! -Aaron & Sarah, The Coverage Couple