What Makes A Broker A Good Broker?
I simply cannot envision my life without my broker! I really can’t understand why some individuals choose to manage their insurance plans, medical aids and other important financial matter by themselves.
After speaking to a number of my buddies and family I’ve come to the realization that people have a misconception of exactly what a broker does and “how expensive” brokers are. I really hope the information below might be beneficial in explaining why a broker is a “must have” contact in any person’s life!
To begin with, it is important to understand the difference between a broker and an agent. An insurance agent works for a particular firm. For that reason an agent will only sell you insurance policies with the company he/she works for. A broker on the other hand, is not employed by a particular business. They’re able to offer you different policies from different companies and because they are able to shop around, they will often be able to assist you with getting better and more cost-effective policies than you would be able to acquire on your own.
Secondly, using a broker is not (necessarily!) going to set you back more! There are only a couple of brokers who impose a payment for their services. Most brokers however work on a commission structure. This commission is payable by the insurance provider and is already calculated in the insurance premium. To put it simply, you will not be paying 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 agencies 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 between a wide range of products and services.
A good portfolio is however worthless if the broker does not know the industry and his products. You should be 100% sure that the broker has knowledge on the product he is suggesting and that he/she can promise you that the particular policy will meet your needs and requirements.
Another positive thing about using a broker is that your concerns can be answered with a simple call. We all occasionally have a question that needs to be answered, or advice with a specific claim or other service. Why spend hours on the telephone attempting to find the correct person to speak to at the insurance company if you can merely leave this in the competent hands of your broker?
Various brokers specialize in various fields. Our broker for example, handles our life insurance, our medical aid and our retirement annuity. In choosing a broker be sure that he/she can help you properly. If a broker focuses on annuities, don’t expect him/her to offer expert advice on short term insurance.
For more information on broker visit our site on http://www.insurance.co.za
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