When it comes to buying insurance, get an insurance agent
I was recently cruising the web, reading various blogs from financial planners and wealth management gurus, and I came upon an article about insurance agents.
No, really, someone other than an insurance agent had actually written something beneficial about insurance agents.
Really. No kidding.
And the central point of the article was, “when it comes to buying insurance, get an insurance agent.
How does an insurance agent help you save money?
The reality is, and I hate to say this, that you can find many insurance products online or through a call center, and in some cases, these products might even save you 4% – 8% if the company isn’t paying a sales commission to an insurance agent.
We insurance agents simply cannot avoid this reality. However, saving 8% on insurance may not be savings.
And this is the truth.
When we pay a premium for an insurance policy, we are buying a promise that losses sustained will be covered by the insurance policy.
When an insurance policy is purchased, and you paid less, what did you give up? In some cases, you simply got a good deal and in others, you gave up some level of protection, but in order to understand if you are in the latter or the former, you need to have a consultation with an insurance agent who knows the answer.
There are elements of protection that some insurance companies take out of an insurance policy to save money on claims payments, or they create drop-down coverage when certain conditions apply.
Only a professional insurance agent can explain these things. This doesn’t make the insurance company a bad company, alternatively, these types of policies are created because there are some consumers who want this level of protection. The only time a lower level of coverage is troublesome is when the consumers is uninformed and purchases an insurance policy that doesn’t match their needs.
What else can an insurance agent do?
Other than trying hard to get to know you, your family and to match your insurance to your financial plans, insurance agents also provide many other services to assist you in making sure you remain covered. All too often, a customer…a good customer, will forget to pay a bill. Sure, the insurance company is regulated to send notification regarding missing payments to provide able time to remit the premiums and avoid cancellation, but those notices get lost in translation.
We insurance agents do our best to keep your coverage in place, making sure we give you an extra notice and a nudge. You see, we take it very personally that each one of our clients receives the protection we have provided. It is very personal to an insurance agent that our clients get what they paid for.
Where will you purchase you insurance next time?
We too recommend that you get your insurance through an insurance agent, preferably and independent insurance agent. Independent insurance agents are allowed to work with many insurance companies, so you can be provided alternatives and get the best match of protection and value. Not that they are better than captive insurance agents, just that they can do more to provide the consumer value than captives, or when you purchase directly from the insurance company.
The blog that I read was from a financial planner, so I recommend that you consult a financial professional, or wealth manager before you start building your personal wealth plan 🙂