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WHY USE AN INSURANCE BROKER? In life the correct insurance is vital. Wrong or inadequate cover can lead to disastrous consequences for individuals, families and/or businesses. The right advice makes all the difference and prevents costly mistakes. An insurance broker is an independent professional insurance advisor who acts for you – the client. Our task is to help you find the insurance cover that best suits your requirements and canvas the insurance market to obtain the best protection to meet your needs at the most competitive price. When you deal directly with an insurance company or their agents, they have only one product to sell – their own. A broker on the other hand will evaluate the type of cover required and go to several underwriters who specialize in the particular class of life business. Having more options to choose from will certainly increase your knowledge that you are getting the best value for your insurance dollar. DOES DEALING WITH A BROKER COST ME MORE? Insurance companies generally are morally obliged to quote the same rates, whether it be direct or via a broker. In most cases, an insurance company will prefer dealing with a broker, particularly in specialized fields such as life. Insurance underwriters acknowledge that the broker in the field has a better feel and knowledge of the customer's requirement. Besides that, the companies recognize that a good knowledgeable broker more than pulls their weight. The broker processes the quotation enquires, issues Coverage Summaries, invoices and collects the premium and assists in the claim process |
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 A KNOWLEDGEABLE INTERMEDIARY A recent issue of Business and Commercial Life ran an article on aircraft insurance and offered the following advice to their readers:- Use a broker who specializes in life insurance and understands the life business well. "In arranging life insurance, there is no doubt that the
first and most important step is the selection and appointment of an
experienced insurance broker with specialist knowledge in life insurance. It
is not necessarily the best option to deal directly with the insurance company
when it comes to life insurance. You will in fact be on your own with no
one in your corner should a dispute arise. Everything is fine as long as you
don’t have a problem with a claim and need some good independent advice as to
how things should work. This is one area of life insurance where a
knowledgeable broker can play a pivotal role in achieving the correct balance
between the three crucial insurance ingredients: Coverage, Cost and Security".
TO CONCLUDE What it all boils down to is making the best decision by having the most options available to you. Dealing directly with an underwriting agency, you get one option – one product. With a broker working for you, you are able to get the big picture of how the life industry currently views and prices your risk. One final point – don’t be fooled into believing that you can ask six different brokers "get me a quote" and think that you are going to get a wide range of proposals to consider. There are a finite number of markets to access and nothing causes more damage than to have multiple brokers all running around on the same account, tripping over each others feet and all trying to present the same risk in a different manner! It is the quickest way known to man to drive the premium up and to ensure that the insurers lose interest altogether. Select the best broker in the first place and trust him to do the job for you. |
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