Everyone needs insurance for one reason or another, whether its life insurance or automotive coverage, at some point in your life you are going to have to deal with an insurance agent. It’s really hard to decide which insurer to go with as well. Between the commercials, special offers, special pricing and your budget, you may find the task of choosing the right insurer, impossible. It is because of this that using an insurance broker is so beneficial.
An insurance broker is a person who has access to a variety of different insurers and their products. By using a broker you get their expertise across a variety of insurers, ensuring that you see everything out there and make the right choice.
A captive insurance agent is an agent that works for a specific insurer. This means that the only products they will present you are the ones provided by their company. Under certain conditions this could be beneficial. In a situation where you have done extensive independent research on insurers and have decided on one provider that you want to work with, then a captive agent would be appropriate for you. For most though, this is an unlikely scenario. After all, who has time to do that kind of research on that many insurers?
Choosing an insurance broker means you don’t have to do all that research. Since a broker is not beholden to any one insurer, they can honestly present you with a variety of coverage options, explain them to you and help you choose. On top of this, a good broker will also help you review any other policies you may already have. If you have insurance through your employer, spouse, parents etc., the broker will be able to decipher what you are covered for already and how much coverage exists within those policies. In many cases you may only need supplemental coverage to cover any shortfalls in your current coverage, or you may only need a specific type of insurance, rather than a total policy. This could save you a lot of money.
Types of Insurance
There are many types of insurance out there. From term policies, combined policies, property insurance, health/medical insurance, and of course, life insurance. One of the most expensive aspects of life that everyone has to deal with at one time or another is health or medical expenses. Having coverage for the unexpected should be a priority for everyone. With insurance laws in the United States having changed, having medical coverage is now necessary – but that’s a good thing. Think about all the times you had an unexpected medical cost pop-up and you weren’t financially prepared for it. This is a common dilemma for students, single-parent families and those who lost a job (and their benefits) unexpectedly. Whether you had to pay out of pocket for a visit to the doctor, or had a pricey prescription to get, it’s not pleasant to be ill and not be able to reasonably afford treatment. Medical expenses are often unpredictable, and some, such as having a child, can cost thousands of dollars. If you have any medical conditions, or plan to have a family, discuss this with your insurance broker to make sure you get an adequate policy.
Protecting your home is another major insurance policy you want to have locked in place – and know all the details of. Your insurance broker can explain what your home insurance covers and what it does not. Most policies don’t cover flood damage, so you may have to buy a separate flood policy – which is something your insurance broker should explain clearly. The last thing you need is water damage in your home, just to discover you aren’t covered for it. Home insurance will also provide some measure of liability insurance, which protects you financially if someone is injured on your property. Again, you will want to know all the details of this ahead of time.
We all need insurance, and while you may not need every kind of insurance under the sun – just yet – you will eventually need coverage for all areas of your life. Consult an insurance broker to make sure you have access to a wide selection of policies from a variety of insurers.
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