I just can’t imagine my life without my broker! I must say i can’t understand why some individuals choose to handle their insurance plans, healthcare aids and other important financial matter on their own.

After speaking with a couple of my friends and loved ones I have come to the conclusion that people have a false impression of exactly what a broker does and “how expensive” brokers are. Hopefully the info listed below might be valuable in outlining why a broker is a “must have” contact in any person’s life!

First of all, you will need to understand the difference between a broker and an agent. An insurance agent works for a specific firm. Because of this an agent is only going to try to sell you policies with the company he/she works for. A broker however, isn’t employed by a particular company. They are able to present you with different policies from various companies and because they are able to research prices, they will often be able to assist you with getting better and more affordable policies than you would be able to get hold of by yourself.

Second of all, using a broker is not (always!) going to set you back more! There are actually only a couple of brokers who charge a fee for their expert 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 dealing with a broker and you will not spend less when trying to source insurance by yourself.

As with all things in life, practical experience plays a vital role when selecting a broker to manage your needs and requirements. Remember that these brokers need to build up relationships with the insurance agencies and that takes time! The longer the broker has been in the business, the wider his portfolio will be and you will be able to pick from a wide range of services and products.

A good portfolio is however useless if the broker doesn’t know the industry and his products. It is important to be 100% certain that the broker has knowledge on the item he is suggesting and that he/she can promise you that the specific policy will meet your needs and requirements.

Another positive thing about using a broker is that your questions can be answered with a simple telephone call. We all from time to time have a question that needs to be answered, or assistance with a specific claim or other service. Why spend hours on the phone trying to find the correct person to speak with at the insurance provider if you can merely leave this in the capable hands of your broker?

Various brokers specialize in various areas. Our broker for example, handles our life insurance, our medical aid and our retirement annuity. When 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.