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Life insurance agent vs broker

The differences between life insurance agents and brokers can be seen in a few details. Each job has different responsibilities and duties. Additionally, a broker has an average salary of $124,861, which is higher than the $62,552 average annual salary of a life insurance agent.

The top three skills for a life insurance agent include health insurance, life insurance license and life insurance sales. The most important skills for a broker are brokerage, financial services, and insurance products.

Life insurance agent vs broker overview

Life Insurance AgentBroker
Yearly salary$62,552$124,861
Hourly rate$30.07$60.03
Growth rate6%5%
Number of jobs68,7812,770
Job satisfaction--
Most common degreeBachelor's Degree, 53%Bachelor's Degree, 66%
Average age4649
Years of experience--

What does a life insurance agent do?

A life insurance agent is responsible for offering life insurance services for clients according to their needs and qualifications. Life insurance agents handle insurance claims of the beneficiaries, ensuring the accuracy of documents and account statements for verification. They also discuss possible options and alternatives, as well as considering the clients' long-term financial goals and objectives. A life insurance agent must be well-knowledgeable of the insurance services offered by the company, discussing policies and coverage to suit the clients' best interests.

What does a broker do?

Brokers can either be a firm or an individual acting as an intermediary between a securities exchange and an investor. They often provide services to individual investors and traders who cannot engage directly with security exchanges, which only accept orders from their members. They provide investors and traders with an investment plan, market intelligence, and research. They may cross-sell some financial services and products offered by their brokerage firms. They are also typically classified as discount or full-service brokers.

Life insurance agent vs broker salary

Life insurance agents and brokers have different pay scales, as shown below.

Life Insurance AgentBroker
Average salary$62,552$124,861
Salary rangeBetween $39,000 And $99,000Between $68,000 And $227,000
Highest paying CityAnchorage, AKNew York, NY
Highest paying stateAlaskaNew York
Best paying companyAIGChild Guidance & Family Solutions
Best paying industryInsuranceInsurance

Differences between life insurance agent and broker education

There are a few differences between a life insurance agent and a broker in terms of educational background:

Life Insurance AgentBroker
Most common degreeBachelor's Degree, 53%Bachelor's Degree, 66%
Most common majorBusinessBusiness
Most common collegeUniversity of PennsylvaniaUniversity of Southern California

Life insurance agent vs broker demographics

Here are the differences between life insurance agents' and brokers' demographics:

Life Insurance AgentBroker
Average age4649
Gender ratioMale, 53.7% Female, 46.3%Male, 63.8% Female, 36.2%
Race ratioBlack or African American, 9.4% Unknown, 3.6% Hispanic or Latino, 16.0% Asian, 4.9% White, 66.0% American Indian and Alaska Native, 0.1%Black or African American, 5.3% Unknown, 4.3% Hispanic or Latino, 13.2% Asian, 6.9% White, 70.1% American Indian and Alaska Native, 0.3%
LGBT Percentage7%13%

Differences between life insurance agent and broker duties and responsibilities

Life insurance agent example responsibilities.

  • Used consultative upselling techniques to provide leads
  • License in state of VA to sell life insurance, annuities, disability income, Medicare supplements, and LTC.
  • Use of a variety of tools to help employers compile the best possible life insurance or annuity packages to retain employees.
  • Market life insurance and annuity products
  • Maintain knowledge of states insurance laws and HIPPA compliance.
  • Examine doors, windows and gates to ensure that they are secure.
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Broker example responsibilities.

  • Manage, lease and sell office condominiums on site.
  • Retail trader, fix income securities; manage client account activity; properly allocate client funds to appropriate investment options
  • Manage indexes, options, foreign equities, and short-selling positions that are compatible with clients' long-term investment goals.
  • Expand and maintain professional relationships with trading accounts including banks, hedge funds and portfolio managers.
  • Specialize in finding undervalue and/or overbought commodities by using fundamental and technical analysis that exist throughout the markets.
  • Install the oracle client for windows.
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Life insurance agent vs broker skills

Common life insurance agent skills
  • Health Insurance, 24%
  • Life Insurance License, 16%
  • Life Insurance Sales, 14%
  • Work Ethic, 10%
  • Lead Generation, 8%
  • Develop Leads, 5%
Common broker skills
  • Brokerage, 17%
  • Financial Services, 9%
  • Insurance Products, 7%
  • Risk Management, 6%
  • Client Relationships, 6%
  • Real Estate Transactions, 5%