Independent vs. Captive…The Choice is Yours

The Difference Between an “Independent” versus a “Captive” Insurance Agent

Congratulations! You are either a newly licensed insurance agent, or contemplating becoming a licensed insurance agent who’s looking to unlock your financial and career freedom. Either way, you are on the right path of success towards becoming a successful Licensed Insurance Agent.

The very first step you must do if you are not a licensed agent is to get properly prepared to take and pass the state insurance exam.  Choosing the right pre-licensing academy is crucial to your success at passing the exam. Texas Insurance Training Academy is one of Dallas’s most premiere pre-licensing academies with a 95% student passing ratio.  You can visit their website for more information at

Once you have passed the state insurance exam to become a licensed insurance agent, the next step is to decide whether your career path will be as an “Independent” agent or as a “Captive” agent.

An “Independent” agent is an agent that has the capability and freedom to work with multiple carriers at the same time in which they are able to sell and solicit several different insurance products.   A “Captive” agent is an agent that works with only one specific carrier and is only allowed to sell and solicit that particular carrier’s insurance product/products.

In addition, an “Independent” agent generally has to set up their own office space, cover all of their business expenses and overhead, handle their own advertisement/marketing, and take care of their own tax withholdings.  A “Captive” agent generally has those things set up and taken care of by their representing company.

The compensation of an “Independent” agent is generally straight commission compensation whereby a “Captive” agent is generally commissioned/salaried/hourly.

When it comes to choosing which career path to take, there is no right or wrong decision.  Your decision should be dependent upon your set future career goals to become a successful Licensed Insurance Agent.


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