DEFINITION of 'Combination Agency'

A type of agency which combines segments that are normally separate. A combination agency will take two separate but related services and provide them both to customers. In life insurance, a combination agency could sell both ordinary life insurance as well as industrial life coverage, or it could provide both life insurance and health insurance. These agencies stand in contrast to those that focus on only one type of service. Also known as combination companies.

BREAKING DOWN 'Combination Agency'

Many life insurance agencies are combination agencies. The agency may have separate agents or brokers that focus on one type of coverage or the other, or they may all sell both lines. Companies will do this when they feel the services provided are close enough that customers will benefit from a one-stop shop. Also, combination companies can increase their revenue by offering both lines of coverage. Some regulations prevent certain companies from providing two related services, for example some financial institutions might not be able to provide banking services and life insurance in the same branch. Instead, customers might be directed to call for the service.


Fire departments refer to combination agencies as departments with both volunteer and paid employees.

RELATED TERMS
  1. Whole Life Insurance Policy

    A life insurance contract with level premiums that has both an ...
  2. Group Term Life Insurance

    A type of insurance coverage offered to a group of people. This ...
  3. Key Person Insurance

    A life insurance policy that a company purchases on a key executive's ...
  4. Variable Life Insurance Policy

    A form of permanent life insurance, Variable life insurance provides ...
  5. Universal Life Insurance

    A type of flexible permanent life insurance offering the low-cost ...
  6. Insurance Coverage Area

    The geographic region in which an insurance policy’s benefits ...
Related Articles
  1. Financial Advisor

    10 Best Life Insurance Companies of 2016 (MCO, PRU)

    The 10 best life insurance companies of 2016 have strong financials, longstanding brands and excellent reputations for customer service.
  2. Financial Advisor

    Is Life Insurance From Your Employer Enough?

    Covering the needs of the ones you would leave behind is not easy. But efforts to secure a life insurance policy outside of work should pay off.
  3. Insurance

    Life Insurance

    Life insurance is an important component of basic financial planning. Find out how life insurance works and how insurance companies are able to profit through providing financial security to ...
  4. Financial Advisor

    Buying a Life Insurance Policy? Read This First

    Knowing who needs life insurance, how it works and the different types of insurance can help consumers make informed decisions about this product.
  5. Insurance

    Choosing The Best Life Insurance Company For You

    What to consider before you choose the life insurance company that can give you the policy you need now – and meet your needs as your life evolves.
  6. Financial Advisor

    Getting Life Insurance in Your 20s Pays Off

    Find out how Americans in their 20s can benefit from a well-thought-out life insurance policy, especially if they are able to build cash value for retirement.
  7. Insurance

    4 Reasons Why Waiting To Buy Life Insurance Is a Bad Idea

    Understand the benefits of applying for and securing life insurance coverage while you are young and healthy, and learn the cost of waiting to get coverage.
RELATED FAQS
  1. What are some examples of when insurance bundling is a bad idea?

    Learn about situations where insurance bundling may not be a favorable option. Bundling insurance is often a good idea, but ... Read Answer >>
Hot Definitions
  1. Treasury Bill - T-Bill

    A short-term debt obligation backed by the U.S. government with a maturity of less than one year. T-bills are sold in denominations ...
  2. Index

    A statistical measure of change in an economy or a securities market. In the case of financial markets, an index is a hypothetical ...
  3. Return on Market Value of Equity - ROME

    Return on market value of equity (ROME) is a comparative measure typically used by analysts to identify companies that generate ...
  4. Majority Shareholder

    A person or entity that owns more than 50% of a company's outstanding shares. The majority shareholder is often the founder ...
  5. Competitive Advantage

    An advantage that a firm has over its competitors, allowing it to generate greater sales or margins and/or retain more customers ...
  6. Mutual Fund

    An investment vehicle that is made up of a pool of funds collected from many investors for the purpose of investing in securities ...
Trading Center