Advantages of Insurance Brokers
Posted 24 Jul 2015 by Melissa Allan
An insurance broker is typically contracted with numerous insurance companies and is able to sell a wide variety of their products. This is a huge advantage when shopping for rates as your broker should be working for you, and not just one company.
When working with clients I survey several carriers’ prices and products to find a product that best suits the client’s needs. Cost savings is a big factor in this decision but my recommendations also factor in the reputation of the companies who I recommend, their financial strength, whether or not they have a good reputation handling claims, etc… There is not one product or one company to meet all of our clients’ needs.
Term Insurance is one of the most basic comparisons but some carriers' policies end at age 75 and others at age 85. Most people don’t want to carry term insurance that long as it becomes very expensive but it would be nice to have the option if you were left no other alternative. Different companies also have different conversion privilege options and expiry dates but the standard is age 65.
Be careful when looking at disability or critical illness insurance policies and trying to compare costs! Each company often designs their products a little differently when it comes to covered conditions and definitions of illness, etc…
Insurance companies will price their products a little differently depending on which product/market they wish to be more competitive in but significant price differences should raise a red flag to you. Quite often the prices found while browsing the internet on your own aren’t as good as they appear. Some agents/internet sites quote preferred or elite rates for everyone to earn their business as the “lowest price” but in reality most applications that are not ratable receive standard rates, higher than the quote you may have found. In addition, some carriers will not automatically review you for preferred rates unless you (or your agent) asks.
I spend a lot of time researching the carriers I work with to ensure I understand the differences in their products. One of the things I love the most about what I do is laying out the options for our clients to make the decision that is best for them once they know all of their options.