You could handle your insurance needs on your own, or you can reach out and seek the helpful services of a life insurance broker. No matter what your life, career or family circumstances, accidents are an unfortunate fact of life. Nobody likes paying for insurance, but having suitable coverage for your needs is pretty much a “must” these days. The right coverage can protect you and your loved ones financially. Since choosing the best cover is such an important task, it seems only logical to seek guidance from a life insurance broker.
Before settling on a life insurance broker, it’s important to understand the difference between a broker and a life insurance agent. A broker works as an independent operator that can offer life insurance products from both major and minor insurance carriers. On the flip side, an insurance agent is employed directly by one insurance company and is only able to recommend or sell that particular carrier’s product.
There are many advantages of working with a life insurance broker, because they don’t just represent one provider. Since you are their client, they can help take care of your insurance needs with your best interest in mind.
If you’re still not convinced, here are four benefits that come from working with a life insurance broker:
1. They Can Shop Around
Possibly the greatest advantage of working with a life insurance broker is that they have the ability to shop around for the best rates for your needs. In 2020 there were over 850 life insurance and annuity companies in the U.S. alone—that’s a lot of companies to choose from. A life insurance broker can make the process of choosing so much easier for you. (1)
They are able to understand your circumstances and compare insurance rates. Oftentimes, different providers can have hidden costs or there are cheaper options out there that provide the same product. With their skillset and knowledge, brokers have the know how to ensure you’re always getting the best and most competitive rate there is in the marketplace.
2. They Work For You
A broker may represent many insurance companies, but they aren’t actually employed by those companies. This means they have no loyalties to one company or the other and aren’t necessarily pressured to meet these companies' sales goals, or even to sell a particular product over another.
The broker’s client is their employer, which means they would be working directly for you and your interests. They have one objective and that’s to offer products to you that best fit your circumstances, needs and financial interests.
3. Larger Access
Because brokers work with a lot of different major insurance companies, they have great access to many different insurance products. Sometimes it’s not even about price, but the features and benefits that are afforded the policyholder. It’s your broker's job to stay up to date with changes and understand the benefits and drawbacks of certain features. When dealing with your life, critical illness or disability products, you’ll want someone in your corner who understands every aspect of an insurance policy.
An example might be a company that offers a life insurance product that’s very beneficial to you, but it may not offer the best disability policy. In this case a broker can ensure you purchase the most appropriate life insurance and disability insurance. They can do this by presenting different options from different insurance carriers. A life insurance policy is only as good as the financial institute that issues it, and your broker can compare the strength of different companies as well as their policies and products. (2)
4. Ongoing Support
Insurance brokers aren’t only there to arrange your insurance policy. They also work to provide you with ongoing services, help and support by staying up to date on the insurance market. It’s their responsibility to analyze and assess any potential risks that might arise. In the case of an accident, your insurance broker can act as your claims advocate, where they can ensure you receive all that you’re entitled to under your policy coverage. When it comes time to renew, your broker will reassess any risks and the current insurance market. In doing this can make sure you’re protected moving forward.
A life insurance broker represents multiple insurance companies, and this is just one of the great advantages of choosing to go with a life insurance broker. They work for you and ensure you are receiving the most competitive rates and the best insurance policy overall that they can find in the marketplace for your specific needs.
It’s important to remember that a life insurance broker is different than an insurance agent. A broker represents multiple insurance carriers and an agent only covers one. For the best and most helpful service, you can seek the guidance of a life insurance broker.
References
(1) “Facts + Statistics: Industry overview,”
(2) “Life Insurance Guide to Policies & Companies,”
