Combination Agency

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. Adjustable Life Insurance

    A type of life insurance that combines features of term and whole ...
  2. Key Person Insurance

    A life insurance policy that a company purchases on a key executive's ...
  3. Group Term Life Insurance

    A type of insurance coverage offered to a group of people. This ...
  4. Universal Life Insurance

    A type of flexible permanent life insurance offering the low-cost ...
  5. Voluntary Life Insurance

    A financial protection plan that provides a beneficiary with ...
  6. Insurance Company Credit Rating ...

    The opinion of an independent agency regarding the financial ...
Related Articles
  1. Personal Finance

    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.
  2. Financial Advisor

    Whole or Term Life Insurance: Which Is Better?

    Learn the difference between term life insurance and whole life insurance. Understand when it is beneficial to buy each type of life insurance.
  3. Investing

    3 Reasons to Avoid Term Insurance

    Find out the reasons why term life insurance may not be for everybody, and why you may want to avoid it in favor of a permanent life insurance policy.
  4. Personal Finance

    Getting Your (Insurance) House in Order

    From starting a family to retirement, insurance can play a role in taking care of financial needs. This piece looks at some of the choices you can make.
  5. Managing Wealth

    20 Investments: Life Insurance

    What Is It? Life insurance is income protection in the event of your death. The person you name as your beneficiary will receive proceeds from an insurance company to offset the income lost as ...
  6. Personal Finance

    The Best Type Of Life Insurance For You Right Now

    Different stages of life call for different amounts of life insurance coverage. Find out what you need, when and why.
  7. Retirement

    Life Insurance: Putting A Price On Peace Of Mind

    Would your death leave loved ones financially stranded? Find out how to ease your mind and keep them protected.
  8. Personal Finance

    Millennials Guide: Too Young for Life Insurance?

    Unless you have kids, it's easy to think you don't need life insurance Here are the reasons why you might– as well as which type and how much to get.
  9. Personal Finance

    Mortgage Protection Life Insurance Is Unnecessary

    Mortgage protection life insurance is a type of life insurance most people don’t need.
  10. Personal Finance

    Intro To Insurance: Types Of Life Insurance

    By Cathy ParetoLife insurance protection comes in many forms, and not all policies are created equal, as you will soon discover. While the death benefit amounts may be the same, the costs, structure, ...
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 >>
  2. What is the average return on total revenue for the insurance sector?

    Learn about the three main segments of the insurance industry, and find out what the average return on revenues is for the ... Read Answer >>
  3. What is the difference between term and universal life insurance?

    Term life insurance is the most basic of insurance policies. It is nothing more than an insurance policy that provides protection ... Read Answer >>
  4. How much life insurance is enough?

    There are many factors to consider when calculating life insurance. Some of those factors include marital status, dependents, ... Read Answer >>
  5. How does the combined ratio measure the financial health of insurance companies?

    Learn about the combined ratio, what the combined ratio measures and how it is used to measure the financial health of insurance ... Read Answer >>
  6. What is term insurance?

    Term insurance is a type of life insurance policy that provides coverage for a certain period of time, or a specified "term" ... Read Answer >>
Trading Center