Combination Agency

Categories: Insurance

In general, a combination agency is an insurance company that sells different types of insurance that would normally be sold by separate companies. The most common combination is life insurance and industrial life insurance.

With life insurance, the insurance company pays out a sum of money to your beneficiary when you die. Industrial life insurance works the same way, but the amounts are typically smaller. It's a specialized product for a lower-income market. These policies are also sometimes known as "burial insurance," because the amount paid out doesn't do much more than, uh...pay for the funeral.

Even though the products are similar in terms of their general structure, life insurance and industrial life insurance are often sold through different companies, because the markets for the products are so different. A combination agency would sell both, existing a little like a Ruth's Chris/McDonald's combo at a highway rest stop.

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