The insurance industry is constantly evolving to meet the needs of consumers. We will explain the benefits of using an insurance broker, however, let’s look at how the insurance sector works so you can better appreciate the services of the broker.
Everyone needs insurance to protect their assets, including homes, vehicles, life and health. You may never have to file a claim, but without adequate insurance, you could be putting your entire family at financial risk.
When you purchase an insurance policy terms and conditions will be clearly defined, you will pay a specific amount of money known as the “premium”. In return for this premium, you will enjoy the protection from financial loss up to a certain amount defined by the policy. The insurance company providing coverage is aware that only a percentage of all their clients will file a claim so the risk is manageable. The insurance company will try to acquire a large number of clients and pool all the premiums together. A portion of these funds will be set aside to cover claims, and the balance is used to cover costs. Along with covering costs, some insurance companies will invest their money in the stock market to increase their earnings, this perfectly legal, but it does expose some companies to financial risk, which could put you in jeopardy.
Since there are many different types of insurance policies available, you need help to make sense of the technical jargon so you can decide whether this policy makes sense for you. This is where an insurance broker can make a world of difference.
With an insurance broker, they work for you, and since their success is predicated on having a large base of satisfied clients: they will do everything in their power to get you great coverage. After you have filled out a form letting the broker know what your needs are, they will shop the market. The broker has access to a vast array of insurers who offer favorable terms to brokers; these favorable terms translate into better pricing for you.
After the broker has completed their research, they will come back to you with their recommendations; you are not obligated to accept, but you should give it serious consideration. You may be wondering how the insurance broker gets paid. They receive their compensation from the insurance company you decide to utilize. This means you do not pay the broker directly, and since the brokers income is derived from you using their services on a long-term basis, you can rest assured knowing they are doing their best to satisfy your needs.
The insurance broker is going to provide you with peace of mind. If you bought the insurance on your own, there is a good chance you would make a costly mistake. A qualified expert can help, which leaves you to enjoy life knowing you are protected.
Want to know more about how The Hoffman Agency, LLC, can help you meet your insurance needs? Feel free to check us out. We are certain that you will find our ability to build an outstanding relationship is unparalleled among insurance companies in North or South Carolina.
