Here are 10 Reasons Why an Insurance Broker is Your Best Insurance Advice
Choose an insurance broker over a career agent for better insurance planning
If you’re looking for the best insurance advice, you should be speaking with an insurance broker. A life insurance broker has many, many advantages over a career insurance agent. A career agent is a “captive agent”. This means the agent is only allowed to sell life and health insurance products from one insurance company and can’t shop the marketplace to find you the best products and price. It is a one size fits all approach with career agents.
On the other hand, insurance brokers have many advantages that you can benefit from. Below we have listed 10 of the main advantages you get from dealing with a life insurance broker in Canada.
1. Insurance Brokers can shop the market
The first advantage you get is that an insurance broker can shop the entire Canadian marketplace to find you the best deal. Even though it is human nature that brokers will have a few favourite insurance companies they traditionally go to, if those companies can’t solve the problem or if their premiums’ are not competitive, the broker can shop different insurance companies to find a solution. The typical insurance broker in Canada holds contracts with 8-10 life insurance companies that they can deal with. At Life Guard Insurance all our brokers are have access to 15 of Canada’s largest life insurance companies to really give you options when shopping for the best deal.
2. Insurance brokers can design comprehensive risk management plans
An Insurance broker can do more because they have access to more. There are many insurance companies in Canada that specialize in certain markets, like disability insurance for blue collar workers, or joint last-to-die life insurance for estate planning. Your life insurance broker will know where the sweet spots are in the market place when designing your plan. They can also combine different types of benefits from different insurance companies when building your plan. Like life insurance from company A, critical illness insurance from company B and disability insurance from company C. In this way they can find you the best policies at the best price, even if it means more work for the broker.
3. Insurance brokers have extensive training
The amount of ongoing training and development an insurance broker undertakes each year is extensive. They usually have far more hours of training than is required by their provincial licensing body. This is because they need to keep up to date on products and sales strategies from all the different life insurance companies they are contracted with. They typical broker spends 5-10 hours per month in ongoing training sessions from insurance companies and industry experts, honing their craft and keeping their skills sharp to better serve you – the client.
4. Insurance brokers can do full financial planning
Many insurance brokers are dually licensed – so that they can sell mutual funds as well as insurance products. Even those without a mutual fund license have access to a wide range of investment products offered by their insurance companies, including segregated funds, GMWBs and GLWBs, Annuities and GICs. If you’re looking for one financial advisor to take care of all your insurance and investing needs, an experience life insurance broker can do it all for you.
5. Insurance brokers are well connected to complimentary service providers
An insurance broker standing alone does not fulfill all your financial planning needs. Good insurance brokers know this. That is why they have built relationships with complimentary service providers to help you. These could be family and estate lawyers, small business accountants, bookkeeping specialist, investment councillors, mortgage brokers, realtors, etc. A good insurance broker can help you with all your financial planning needs by connecting you with other financial experts to as you need them.
6. Insurance brokers can find you real value in your insurance products
There are hidden gems inside many life and health insurance contracts. A life insurance broker will know about many of these gems and be able to help you find real value in your insurance planning. This could be a highly competitive guaranteed interest rate being offered on certain insurance products, or a refund of premium option making your insurance almost free over time, or many other little nuances that only an experience insurance broker would know.
7. Insurance brokers are independent business owners
When working with an insurance broker you are working with an independent business owner. They are not a corporate employee and do not have to balance the needs of the company against the needs of you, the client. Insurance brokers always act in the best interests of their clients as they have no binding ties with insurance companies or specific loyalties to these companies. As an independent business owner, they take greater care of their clients and build long-lasting relationships.
8. Insurance brokers know their clients are their life-blood
Very similar to point #7, insurance brokers know that their business depends on happy customers. New customers often are referred by satisfied customers the insurance broker already has. The insurance broker’s brand and business is built on the good will of their clients. Happy clients will do more business with the broker in the future and will refer their friends, family and colleagues to the broker. An unhappy client can destroy the broker’s reputation in the community.
9. Insurance brokers build their reputation on trust and excellent customer service
As a small business owner, an insurance broker does not have a big national brand to stand behind them. They don’t have a customer service department, TV ad campaigns, national brand awareness marketing, etc. What they really have is expert knowledge, a passion to help clients and a dedication to providing better service and solutions to customers than the big guys. Larger financial services companies try and market to the masses by simplifying their product offering to meet the needs of the lowest common denominator – dumbing down their offering to sell more volume. An insurance broker works one-on-one with their clients and provides as much education and analysis as the clients need to solve their unique problems. This is how insurance brokers build their reputation in the community, and build their business.
10. Insurance brokers want to talk to you and help you out
Have you ever felt like you were just a number when dealing with your local bank or phoning into a large financial services company’s call centre? It’s very common. The person on the other end of the phone or across the desk is just an employee, and they get paid regardless of whether or not you buy and how well they serve you. An insurance broker is paid only when they properly solve your insurance and investing needs and you are happy with the product they gave you and the service they provided. Insurance brokers want to talk to you. They want to understand your financial needs and put their minds to work solving your problems. They want to find you the best insurance product that you will be happy with and keep for years to come.
Get the best insurance advice from a local life insurance broker in Canada
So, here are 10 good reasons why dealing with an insurance broker is your best choice. Get the best insurance advice and the best life and health insurance products to solve your financial risks. At Life Guard Insurance we have a network of local life insurance brokers across Canada ready to help you. Contact us today to find the best insurance broker in your area.
The article was written by +Mitch Reynolds. If you found this article interesting or it made you think, please feel free to share your comments below. Liking us on Facebook, giving us a +1 on Google or Tweeting this article about getting the best advice from an insurance broker would be very much appreciated.