Insurance is an important investment, even if it doesn’t pay out directly. Getting insurance cover can give you piece of mind, whether it’s for your business, home, or health. But protecting these precious assets doesn’t mean that you shouldn’t take care when selecting and purchasing insurance.
Whatever type of insurance you’re looking for, you have two options immediately. You can purchase protection directly from an insurance company, or you can go through a broker. Each option has its own pros and cons that need to be considered along with the type of coverage you need.
Insurance directly from provider
Some people think that dealing directly with the insurance company is the best way to get coverage. It may seem like the pricing is better since you’re not involving another party (a broker), but this is not always the case, as the insurance firm saves money on commission fees (since they don’t need to pay any intermediary, they just make more money and provide less service). You will need to do a lot more reading up on different policies and what that company offers.
And that may be the problem. Do you want to review all the details? And are you sure you know enough to be able to work out what the best options are for you? Or would you rather have someone do it all for you at zero cost?
Furthermore, if you are dealing with the company directly, you may not get the personal service you expect, especially in dire times of need. Insurance is meant to cover you during a crisis, but when catastrophe occurs, the insurer will be more concerned about minimising pay-outs, not necessarily about your pain, grief, or loss.
Insurance through a broker
While obtaining insurance through a broker may add to the overall cost, you will get the benefit of a professional’s expertise on which coverage will suit you. Ask about the costs and the options, so that you get a straightforward, transparent consultation, which should include a thorough examination of your needs and risks and discuss different options so that you and your broker can find the right policy for you.
Also, dealing with the insurer directly for simple medical claims may be extremely efficient, as it should be, but when a catastrophic event occurs, such as death or calamity, having a broker on your side can be helpful. Because they usually have an established relationship with the company, a broker can often smooth and expedite the process. If you are incapacitated or filing for a life insurance pay-out, a broker can be your best advocate when you are unable to handle or want to face a bureaucracy.
“Going direct to the insurance company may seem like it has advantages when you buy your coverage, but when it comes to ensuring you get the right type of coverage and handling major claims when you’re least prepared to deal with them, you will want a broker on your side,” explains Richard Cayne. Consulting a trusted expert, like Richard at Meyer International, may help you understand how best to fulfil your insurance needs without that much extra cost, if any.
