“Free consultation” invites an obvious question: if you are not paying, who is, and what does that buy them?
Here is the straight answer, including the parts that are less flattering.
Premiums are filed, not negotiated
Insurance premiums are filed with state regulators. The premium for a given plan is identical whether you enroll directly with the carrier, through a government exchange, or through a licensed independent broker.
There is no broker markup. There is also no discount for going it alone. The price is the price.
Carriers pay brokers a commission out of that already-filed premium. So the economics are: you pay the same either way, and using a broker adds someone who is accountable to you when something goes wrong in July.
The Medicare part is unusually clean
For Medicare Advantage and Part D, federal regulation caps what a carrier may pay a broker per enrollment, and the caps are broadly similar across carriers.
That matters more than it sounds. When every carrier pays roughly the same, the financial reason to steer someone toward one company over another largely disappears. What is left is the actual fit — networks, formularies, out-of-pocket maximums.
Commissions are also typically higher in the first year than in renewal years, which creates a mild incentive to move people. The counterweight is straightforward: a client who is moved into a worse plan does not stay a client. We would rather have someone for twenty years than a first-year commission this month.
The test of whether that is true
Does the broker ever tell you to do nothing?
A significant share of our reviews end with a recommendation to change nothing at all. That advice pays us zero. It is also the clearest evidence available that the incentive is not driving the recommendation.
If you have never heard “your current plan is fine, stay put” from someone who would be paid to move you, that is worth noticing.
Where the conflicts genuinely are
Being honest about this matters more than reassurance.
Life insurance and annuities are not capped the same way. Commission varies meaningfully by product type — generally higher on permanent life insurance and on indexed annuities with riders, lower on term life, MYGAs and immediate annuities.
That creates a real incentive to recommend the more complex, more expensive product. Anyone who tells you otherwise is not being straight with you.
Three protections:
- Ask about the structure of anything recommended, and how it compares to the simpler alternative.
- Ask why this product rather than the simpler one. A good answer names something about your situation. A bad answer describes the product’s features.
- Ask what the guaranteed column looks like on any permanent life or indexed product — not the illustrated one.
We will tell you the structure of anything we recommend, and we will recommend the lower-commission product when it fits better. Term life over permanent is the most common example, and it comes up constantly.
What “independent” actually means
It means we are not employed by any single carrier and are not required to place business with one. We hold appointments with several and recommend whichever fits.
A captive agent works for one company and can only offer that company’s products. That is a perfectly legitimate arrangement — for the company.
Being independent lets us say two things a captive agent structurally cannot: that company’s product is better for you than the one I represent, and you should not change anything.
What it does not mean
It does not mean we see everything.
We do not offer every plan available in your area. We offer plans from the carriers we are appointed with, which covers most of what is available in most counties. Where something material sits outside our appointments, we will say so and point you at Medicare.gov or your state Marketplace.
Any broker who implies otherwise is overstating it.
What you get for the commission the carrier pays
- The comparison work — networks, formularies, total-cost modeling
- The enrollment itself, submitted and confirmed
- Annual reviews every autumn, whether or not anything changes
- Claims and appeals help when something goes wrong
- A named person who answers the phone in June, not just in November
That last part is the whole point. Enrollment takes an hour. The relationship is the twenty years afterwards.
Ask us anything about it
If you want to know exactly how we would be compensated on a specific recommendation, ask. We will tell you.
Get in touch — or read what a free plan comparison includes first.
Frequently asked questions
Does it cost more to buy insurance through a broker?
No. Premiums are filed with state regulators and are identical whether you enroll on your own, through a government exchange, or through a licensed broker. There is no broker markup and no discount for going it alone.
Are Medicare commissions capped?
Yes. Federal regulation caps what carriers may pay brokers on Medicare Advantage and Part D enrollments, and the amounts are broadly similar across carriers — which removes most of the financial incentive to steer someone toward one company over another.
Where do conflicts of interest actually exist?
Mainly outside Medicare. Life insurance and annuity commissions are not capped the same way and vary meaningfully by product type, which creates a genuine incentive to recommend more complex products. Ask about the structure of anything recommended to you.