What Makes A Broker A Good Broker

I just can't envision my life without my broker! I must say i can't understand why some individuals elect to manage their insurance plans, medical aids and other important financial matter on their own.

After talking with a number of my buddies and loved ones I've come to the realization that people have a misconception of just what a broker does and "how expensive" brokers are. I really hope the info below might be beneficial in outlining why a broker is a "must have" contact in any person's life!

To begin with, it is important to understand the distinction between a broker and an agent. An insurance agent is employed by a particular company. For this reason an agent will only try to sell you insurance policies with the company he/she works for. A broker however, isn't employed by a particular business. They are able to provide you with various policies from various companies and because they can look around, they will be able to assist you with getting better and more affordable policies than you would be able to acquire by yourself.

Second of all, using a broker is not (necessarily!) going to cost you more! There are actually only a couple of brokers who impose a fee for their services. The majority of brokers however work on a commission structure. This commission is payable by the insurance company and is already calculated in the insurance premium. To put it simply, you will not pay extra when going through a broker and you will not spend less when trying to source insurance on your own.

As with all things in life, experience plays a vital role when selecting a broker to manage your needs and requirements. Remember that these brokers need to build up connections with the insurance providers and that takes time! The longer the broker has been in the business, the broader his portfolio will be and you will be able to choose from a wide range of products and services.

A good portfolio is however useless if the broker doesn't know the industry and his products. You will need to be 100% certain that the broker has knowledge on the item he is recommending and that he/she can promise you that the particular policy will meet your needs and requirements.

Another positive thing about having a broker is that your concerns can be answered with a simple telephone call. We all occasionally have a question that needs to be answered, or assistance with a specific claim or other service. Why spend hours on the phone attempting to find the correct person to speak with at the insurance company if you can merely leave this in the capable hands of your broker?

Different brokers specialize in different areas. Our broker for instance, handles our life insurance, our medical aid and our retirement annuity. When scouting for a broker make sure that he/she will be able to assist you properly. If a broker specializes in annuities, don't expect him/her to offer expert advice on short term insurance.

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