Taking A Closer Look At Brokers And Life Insurance Cover
If acquiring insurance and life insurance quotes is a mission for you, you are probably doing it wrong! There are so many tools available to assist people with getting cheaper, more comprehensive insurance quotes. You can log onto the world wide web and compare and contrast a number of quotations in a couple of minutes. You can pick up the telephone and speak to a skilled insurance broker who will be able to assess your needs and requirements. Or you can simply follow the simplest route of all and make use of an insurance broker.
A broker can be seen as the man in the middle, the connection between the life insurance firm and the client, the mediator between the buyer and the seller. This particular person will basically represent the customer and act on behalf of the client and for this reason brokers need to be experts in their field. The very last thing you would want is being stuck with an unqualified broker – then you could often be off even worse than when trying to make sense of insurance on your own!
Brokers can deal directly with the life insurance firm, or they can deal with an agent at the company. This is then also the first big difference between a broker and an agent – an agent usually works for a particular insurance company, whereas a broker is able to source and sell policies from various different insurance providers. Brokers will usually be able to offer their customers great deals, as sourcing the best insurance coverage is basically their fulltime jobs! Where an agent might try to force you to commit to his specific insurance carrier, a broker will generally act in the best interest of their client.
It is important to make sure that the broker that you select is in fact certified as a financial service provider. The Financial Advisory and Intermediary Services Act of 2004 takes care of broker registration and you are therefore entitled to ask for to see a broker’s license, before entrusting him/her with your insurance needs. This act also specifies that brokers have to supply their customers with particular information. You, as the client, should ask your broker to completely explain your insurance plan and if there are any conditions and exceptions that you should be aware of. Guarantee that they also explain the claims course of action to you – will you be able to claim through your broker, or will you be required to contact the insurance company directory? You are also entitled to know which insurance provider you are insured with and what the advantages and monthly premiums of this particular plan are.
Brokers usually receive commission directly from the life insurance company they sell policies for. This is generally known as brokerage. Brokers are also permitted to charge a consulting or policy fee for their services, but most brokers will solely work on the insurance commission. Commission is usually a percentage of the policy involved, but may also be a set tariff – this is luckily something that the broker and the insurance company need to decide on and does not concern the customer.
Having a broker is like having a full-time insurance assistance – you actually have nothing to lose and everything to gain!
For more information about life insurance visit the website http://www.hollardlifeinsurance.co.za
Processing your request, Please wait....
