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One Hit Wonders! A Gilded Cage is still a Cage.

Writer: Robert DiCristofaroRobert DiCristofaro

Why you should think about ditching your Captive Agent and start working with a Independent Insurance Agent or Broker.

A gilded cage is still a cage.

What is a Captive Agent? A Captive Agent is an agent that has contracted with only one company like [insert corporate name here], and can not work with any other Insurance Company in the industry. They are easy to recognize because they have their captor's logo all over their walls, pamphlets, and on the sign over their door. Captive Agents typically only have one policy to offer for each of the things they cover ie. 1home owners, 1renters, 1auto, 1business... Also, Captive Agents are expensive for Insurance companies to retain; which they may pass on to the consumer in the form of higher rates. Met Life got rid of all of their captive agents in 2016, opting to focus on product and many companies are expected to follow suit.

I was astounded to see how much money the policy's captive agents wrote cost the people who are now my clients. We see it all the time... a person comes in and asks if we can beat ____________'s rates for the same coverage, and with out hesitation I say "usually!". The Power of an Independent agent lies in their ability to shop around for the best prices. A Captive agent could have a better rate, but they can only quote 1 carrier where an independent agent can offer a range of quotes with multiple companies. When the Insurance Companies compete for your business you win!

We at 1st Cannon, like many people, value our independence! We will never become captive agents, but that does not mean we offer substandard companies. We work with many well known companies, and while there are a few you haven't heard, we would never put any of our clients with a company that we didn't trust.

The PA department of insurance would not let you work with a subpar Insurance company either; they thoroughly vet every insurer before admitting them and allowing them to conduct business in Pennsylvania. There are strict requirements that every admitted insurer has to follow in order to do business in the state of PA.

Neither I, nor the staff at 1st Cannon, would place any client with a carrier that we were not completely confident in, and we will always work to find you excelent coverage at great prices!

 Investment advisory services offered through Brookstone Wealth Advisors, LLC (BWA), a registered investment advisor. BWA and Brookstone Capital Management, LLC are affiliated companies. BWA and 1st Cannon Financial are independent of each other. Insurance products and services are not offered through BWA but are offered and sold through individually licensed and appointed agents.

 

Any comments regarding safe and secure products, and guaranteed income streams refer only to fixed insurance products. They do not refer, in any way to securities or investment advisory products. Fixed Insurance and Annuity product guarantees are subject to the claims‐paying ability of the issuing company and are not offered by Brookstone.

 

Registered Investment Advisors and Investment Advisor Representatives act as fiduciaries for all of our investment management clients. We have an obligation to act in the best interests of our clients and to make full disclosure of any conflicts of interests. Please refer to our firm brochure, the ADV 2A item 4, for additional information.

 

The notes involve risks not associated with an investment in ordinary debt securities. The securities are not bank deposits and are not insured by the Federal Deposit Insurance Corporation or any other governmental agency, nor are they obligations of, or guaranteed by, a bank. The securities will not be listed on any securities exchange and secondary trading may be limited. Therefore, there may be little or no secondary market for the securities. Accordingly, you should be willing to hold your securities to maturity. The securities are subject to the credit risk of the Issuing Bank, and any actual or anticipated changes to its credit ratings or credit spreads may adversely affect the market value of the securities.

© 2018 1st Cannon Financial

1812 Oviture - Tchaikovsky
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