The term “insurance agent” is often used interchangeably with the terms “independent financial advisor” (IFAs), “financial advisor” (FAs), and “tied agent.”
However, these 3 types of advisors are not interchangeable; they have their own set of rules that govern their conduct – although they don’t vary too much from each other.
What is A Tied Insurance Agent?
Financial advisors tied to insurance companies are tied agents. The company they represent is the only one they can advise you on and sell to you.
For example, if you engage a Great Eastern agent, he or she can only sell you products from Great Eastern and nothing else.
Now you might probably be thinking, why should I engage a tied agent to conduct your financial planning?
Well, that’s the right question to ask.
Tied agents, although they can only sell products from their specific insurance company, have advantages of their own.