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 is who you call when you have questions, need help, or want to discuss your policy.
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, and where your money will come from when the policy pays out. 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.
For example, Haven Life is a captive agency, as it is backed and wholly owned by MassMutual. This is different from some other startup in the world of online life insurance, and it’s an important distinction. Haven Life is owned by MassMutual and offers the Haven Term policy, which is issued by MassMutual – an insurance company that is older than the Internet (or anyone alive, for that matter). MassMutual has over 160 years of experience, 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 MassMutual policy? Check. Finding the right mix of agency and company can help you get coverage 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…
Louis Wilson is a freelance writer whose work has appeared in a wide array of publications, both online and in print. He often writes about travel, sports, popular culture, men’s fashion and grooming, and more. He lives in Austin, Texas, where he has developed an unbridled passion for breakfast tacos, with his wife and two children. This article is sponsored by Haven Life Insurance Agency. Opinions are his own.
Financial strength ratings are as of October 2, 2018: A.M. Best Company: A++ (Superior; top category of 15); Fitch Ratings: AA+ (Very Strong; second category of 21); Moody’s Investors Service: Aa2 (Excellent; third category of 21); Standard & Poor’s: AA+ (Very Strong, second category of 21). Ratings are for MassMutual (Springfield, MA 01111) and its subsidiaries, C.M. Life Insurance Co. and MML Bay State Life Insurance Co. (Enfield, CT 06082). Ratings are subject to change.