Should I Buy Insurance from a Bank or Agent?

Thanks to the passage of the Gramm-Leach-Bliley Act of 1999, your bank may now be a one-stop shop for your banking, investment, and insurance needs. However, this begs the question "should I buy my insurance from my bank or an agent?"

There are advantages and disadvantages for each option. The advantage to going through an agent to purchase your home, life, and health insurance is that the agent may have more products to offer you. Banks often select a limited number of products that may be of use to their customer.

The advantage of going through an agent rather than a bank could boil down to your relationship with your insurance agent. An insurance agent you've established a good working relationship with may treat you like their No. 1 priority and strive to provide you with the insurance coverage you need. When you experience lifestyle changes, such as buying a new home or having a baby, your insurance agent can help you obtain more coverage.

The advantage to buying insurance coverage through your bank is that they already have your information on file, making paperwork and payments easy. You also save time by having your banking, investment, and insurance needs met in one place.

If you have purchased insurance products through your bank, you should have been given their insurance sales disclosure. If this did not happen, and you experience a financial loss because you were not informed of the terms and conditions of your coverage, you may have a valid claim for a lawsuit.

Browse our library to learn more about insurance sales disclosures.

Speak with the experienced attorneys at Phillips & Garcia P.C. to learn more about insurance sales disclosure and how you may be compensated for your trouble.