Why Work With a Broker?
Navigating the ins and outs of your insurance choices can be confusing. Knowing your best options can be as simple as finding the person with the best answers, who puts your best interests first.
There are different distribution options for insurance, just as with any other product. Some options are direct, and others are indirect.
Direct options include:
- Calling up the Insurance Carrier (usually through an 800 number) and applying directly with a stranger over the phone. Sometimes the company will send you an agent you can talk to, but not usually.
- Working with an Insurance Agent employed by one company whose product you are applying for. Some agents work in call centers and others work as outside agents but they represent the company, not you.
- Working with an “Appointed Representative”. This is an agent that is appointed with and represents the products of one insurance company. This type of agent can only offer you one choice.
Indirect options include:
- Working with an Insurance Broker. An insurance broker is independent of any insurance company and can provide advice and products from a multitude of companies. Brokers usually specialize in a particular market segment (such as Life and Health) and have deeper knowledge and expertise in their specialty.
- Working with an Independent Financial Advisor. Financial advisors advise on pensions, investments, and financial instruments. They often also offer non-investment products such as life and health insurance as well.
- Banks and Retail Organizations. Banks and retail establishments sometimes partner with insurance carriers and market insurance products to customers who have made a recent purchase or opened an account.
Making the choice of how to achieve the maximum benefit (and minimize the cost) when shopping for insurance boils down to who you choose to work with.
An agent that works with one insurance company is limited to one product offering at one price, and their loyalty is to the carrier.
An insurance broker helps you shop different companies and can show you various policy types, companies, and price points. Their loyalty is to the client.
If you are interested in working with a broker whose goal is to help you find the right product, the right company, and the lowest rates, fill out the form below.