Back to all terms

Broker

A broker is a licensed professional who acts as an independent intermediary between clients and multiple insurance companies. Unlike agents who represent a single insurer, brokers work on behalf of their clients to compare policies, explain coverage options, and secure the best combination of benefits, price, and flexibility.

In health, dental, life, and group benefits, brokers play a key advisory role by assessing client needs, gathering quotes from several carriers, and presenting impartial recommendations. They help individuals and businesses understand complex policy details, manage renewals, and assist with claims when needed. Brokers are compensated through commissions paid by the insurance companies, not by the client, although they are legally required to prioritize the client’s best interests.

Brokers must be licensed through their provincial insurance council and maintain continuing education to stay current with regulatory and market changes.

Example:

If a small business wants to set up an employee health benefits plan, a broker can gather quotes from multiple insurers such as Sun Life, Manulife, and Canada Life, then explain differences in premiums, coverage, and flexibility before helping the business choose a plan.

What to Watch For:

Verify that your broker is licensed in your province and discloses any potential conflicts of interest. While brokers provide impartial advice, insurers may offer different commission structures, so transparency is important. Always ask for a clear explanation of how your broker is compensated and confirm ongoing service commitments after the policy is issued.

Related Terms

Beneficiary

A beneficiary is the person or entity designated to receive the proceeds or benefits from an insurance policy upon the policyholder’s death or when a covered event occurs. In life insurance, the beneficiary receives the death benefit as a tax-free lump sum. In accidental death and dismemberment (AD&D) insurance, the beneficiary receives payment if the insured person dies as the result of an accident. Beneficiaries can also be designated in certain health or travel plans that include accidental death benefits.

Benefit

A benefit is the specific financial protection or coverage provided under an insurance policy. In health and dental insurance, a benefit refers to the payment or reimbursement made by the insurer for eligible medical, dental, or wellness expenses. Each benefit category - such as prescription drugs, dental services, vision care, or physiotherapy - outlines what is covered, how much the insurer will pay, and any applicable limits or conditions.

Benefit Period (Vision)

The benefit period for vision refers to how often your vision care coverage renews and allows you to make new claims for eligible expenses such as glasses, contact lenses, or eye exams. Unlike other benefits that reset each year, vision care often renews every two benefit periods, which can mean every 24 consecutive months rather than every calendar year.

Benefit Survival Period

A benefit survival period is the minimum amount of time a policyholder must remain alive after being diagnosed with a covered condition before an insurance benefit becomes payable. This period ensures that the illness or injury meets the policy’s criteria for a valid claim and prevents immediate payouts for conditions that result in death shortly after diagnosis.

Blood Glucose Monitor / CGM Devices

Blood glucose monitors and continuous glucose monitoring (CGM) devices are tools used to measure and track blood sugar levels for individuals with diabetes. A standard blood glucose monitor requires a small finger-prick blood sample to provide a reading, while a CGM system uses a small sensor worn on the body to record glucose levels continuously throughout the day and night.

Have questions about your insurance coverage?

Our licensed advisors can help you understand your options and find the right plan for your needs.

Contact Us