“Insurance broker” tends to be one of those mysterious job titles that “real adults” have by the time they’re in their late twenties. Many people not only have no idea what an insurance broker does, but doesn’t know why there is a need for insurance brokers anyway. People buy their own insurance, why hire a broker?
Explaining the function of an insurance broker takes some time, as an understanding of the insurance industry is required. In this article, we’re going to attempt to explain insurance brokering as clearly as possible, so that you can make an informed decision on whether or not to hire a broker for your insurance needs.
Knowledge
First off, let me ask if you know every insurance company there is? For many people, the answer is a resounding “no”, because there is a frankly staggering number of insurance companies for all sorts of insurance. It’s rare to find a person who knows all the major players in the industry, but an insurance broker has this knowledge and much, much more.
Knowing the companies is just the tip of the iceberg, and knowing their policies, their strengths and weaknesses, their contracts and the ideal times of year to sign up is the rest. A thorough knowledge from years of study and years of industry interaction is what follows this impressive front of information.
Policy Understanding
One of the things that make insurance brokers so valuable to the general public and the insurance industry as a whole, is their knowledge and understanding of policies and the ways they work in a real, applicable way.
If you’ve ever looked at a thick stack of paper and signed on the dotted line before reading through all 100 pages of it, you’ve needed an insurance broker. They not only understand the paperwork, but they can break it down for you into easy-to-understand segments, and explain what is important and isn’t important to know with regards to your policy.
Insight
Next up is the insight that an insurance broker has to inform you on when to commit to a policy and when to hold off. Different times of year can affect the cost of your insurance, as can different times of your life financially and as far as your health is concerned. In times of illness, for instance, health insurance and life insurance can go up in cost by amounts that could seem small at the moment, but add up over time.
As these are usually long-standing policies, you will end up paying significantly more by the end of your policy than you would if you had waited longer to sign up. This insight is powerful in that regard, so keep it in mind when meeting with your broker.
Policy Access
Thirdly, policy access is something unique to insurance brokers, as many companies won’t allow customers complete access to changing or adjusting their policies. Brokers also have access to policies not available to the general public, better deals, more coverage, and different benefits to your standard policies.
This is one of the key things that insurance brokers have that can’t be attained anywhere else, and one of the things that makes their line of work so special and useful. By hiring a broker, you will not only save yourself a lot of money, but also get a more comprehensive insurance plan at the same time.
With these points, you can see why insurance brokers are so important in the insurance industry, and what they can do for you in your day-to-day life.
