The difference between insurance brokers, advisors and agents.

When it comes to life insurance, knowing who to turn to can be tricky. Do you need a broker, an advisor, or an agent? And what's the difference between these finance professionals?

While they can all help you find insurance, they don't operate the same way – and choosing the right one can make a difference in the coverage and advice you receive.

Comparing insurance brokers, advisors and agents

Before we go any further, it’s important to call out that insurance brokers, advisors and agents are all types of licensed agents. That means that these professionals all work with insurance companies to sell policies, but the way they work and who they work with can differ.

Some key differences come down to who they represent, how many products they can offer, and their level of independence. Plus, there are important provincial licensing differences that mean the exact titles and regulations that apply to each professional can differ between provinces and territories across Canada.

Choosing the right insurance professional ensures you make a more informed decision when selecting the right insurance coverage for your financial goals.

Insurance brokers

Think of an insurance broker as your personal insurance matchmaker – but instead of setting you up on dates, they connect you with the right life insurance policy for your needs.

From a licensing perspective, insurance brokers and agents work in the same way and are all deemed 'licensed life insurance agents’. Generally speaking, insurance brokers are most commonly known for selling products from multiple insurance companies (rather than being tied to one specific insurer).

That means insurance brokers represent you, the client. Since they're not tied to a single insurer, they can compare policies from multiple insurance companies to find the best deals, benefits, and a policy that fits your lifestyle and needs.

Whether you're after affordable premiums, extensive coverage, or a mix of both, a broker can give you a wider pool of options and unbiased advice, helping you make an informed choice.

Insurance agents

Insurance agents tend to work in the same way as brokers. But in some cases, agents can be experts on a single insurance company's product. They can walk you through all the fine print and help you navigate your coverage choices – but their recommendations are limited to what their employer offers.

While not all provinces and territories use this terminology, some parts of Canada have different terms for different types of insurance agents. For example, ‘independent agents’ can be used to identify professionals who sell policies from multiple insurance companies, while ‘tied agents’ can refer to agents who only sell from one insurance company.

Insurance advisors

Insurance advisors are another type of insurance professional you may encounter when comparing policies.

Some advisors work as independent insurance agents, meaning they can sell policies from one or more insurers. Others are tied to a single insurance company, offering only that provider's products.

Their main objective, however, remains the same: to help you understand your options, recommend the right insurance coverage, and make buying insurance as simple and stress-free as possible.

Do insurance brokers cost more than insurance advisors?

Many people assume that working with an insurance broker means paying extra fees, but that's a myth.

Like advisors and agents, brokers are paid commissions by insurance companies when they sell policies. That means you don't pay extra for their services. Working with a broker has the potential to save you money since they compare multiple insurers to find the best prices and coverage.

Are insurance advisors trustworthy?

When it comes to life insurance, trust is everything. You want to know that the person helping you is not just trying to sell insurance – they're looking out for your best interests.

The good news? Insurance advisors in Canada are licensed and regulated, meaning they have to meet strict industry standards and provide up-to-date information. Many also go through ongoing training to stay ahead of industry changes so they can provide you with the best advice possible.

If you're unsure about an advisor, look for someone who is properly licensed, communicates openly, answers your questions honestly, and focuses on finding the right coverage for your needs – not just making a sale.

What is the average life insurance payout in Canada?

One of the biggest questions people have about life insurance is how much does it actually pay out?

The reality is there's no one-size-fits-all answer. The payout amount a household receives varies based on factors like the type of policy you choose, how much coverage you have, and the premiums you've paid over time. Some payouts may provide short-term relief, while others are designed to offer long-term financial security.

When choosing your insurance plan, think about your financial obligations – mortgage repayments, outstanding debts, your child's education, and replacing lost income for your family. Even a large payout can disappear faster than you'd expect once life expenses start piling up.

That's why it's important to carefully assess your needs and choose a policy that truly helps to protect your loved ones – so they have financial stability when they need it most.

Find the right coverage for you

Life insurance isn't just about ticking a box – it's about making sure that your family is financially secure, no matter what life throws your way. At North Cover, we're here to make the process of securing life insurance easy.

You can choose from a range of life insurance products designed to fit different needs and budgets. Whether you need basic coverage, a full insurance program, or help navigating complex insurance policies, our expert advisors are here to help.

We'll take the time to understand your insurance needs, walk you through your options, and make sure you’re able to pick a policy with the utmost confidence.

Get a free quote today

Now that you know the difference between an insurance agent vs broker and advisor, getting coverage should be simple – and with North Cover Life Insurance, it is. With just a few clicks, you can get a free quote and explore coverage tailored to you.