How is a life insurance agency different from a company?

Have you ever asked yourself what exactly is a life insurance agency and what makes it different from a life insurance company? All the time, right?

Simply put, a life insurance agency is like a store. The agency sells the policy. The agency provides the service. The agency provides policyholders and customers with life insurance agents who can assist when you have questions about coverage options, need help, or want to discuss your policy or coverage.

A life insurance company is what makes the product—the insurance policy—that you buy in the store. Another term would be the insurer. Brass tacks, the insurance company is where your money goes when you buy the policy or insurance product, and where your money will come from when the policy pays out a death benefit. Your life insurance policy is written on that company’s paper (which is why it’s always important to familiarize yourself with the third-party ratings of any insurer you are considering applying for a policy with).

Now, some agencies (sometimes called brokerages) work with multiple companies, similar to how a boutique or department store might carry clothes from a range of brands. But other agencies are considered captive agencies, which means they exclusively work with one insurance company to sell a selection of insurance product options. If you are looking for a term life insurance policy, these agencies will be able to help.

For example, Haven Life is a captive agency that sells life insurance coverage (including term life insurance and short term disability insurance) issued by MassMutual or one of their subsidiaries. This is different from some other startups in the world of online life insurance, and it’s an important distinction. MassMutual has over 170 years of experience in the life insurance industry, an A++ rating from A.M. Best, and a long history of financial strength. One way to think of it: Haven Life has your back and MassMutual has theirs. Also, because they are smaller, agencies are often able to work with companies to help create innovation in the life insurance buying experience. We’re looking at you, Haven Life Plus…

An online agency like Haven Life can give you the best of both worlds. A self-directed option where you can apply anywhere, anytime and from any device? Check. The dependability that comes from purchasing a dependable policy? Check. Finding the right mix of agency and company can help you get coverage and financial protection in an easy, confident and reliable manner.

So that explains that. Now, if only someone would explain for once and for all whether a hot dog is considered a sandwich…