Why use a health insurance broker, you muse? Don't brokers cost more money, after all they have to make a living too. Why spend more money for something that can be easily done on ones own. Well, there are certain advantages to be had from using the services of a health insurance broker and your insurance premiums don't go up as a result. You will pay the same price whether you use a health insurance broker or you go directly to any health insurance company.
So, you're now saying to yourself, what 'the catch? How do these people get paid? The answer is that insurance companies pay these independent brokers a commission the cost of which is covered by inclusion in all health insurance premiums. In other words you're paying for this broker's advice anyway so why not take advantage of it!
The Three Sources of Insurance
There are three sources of insurance and two can reasonably be accessed online.
1. Captive agents are those selling for a single company.
2. Telephone agents sell only over the phone and again avail you of the insurance perks of a single company.
3. Independent Insurance Agents and Brokers represent numerous insurance companies offering a variety of options in coverage and cost. They spend the time and effort accomplishing the task of researching and acquiring the necessary information in order to offer you the best combination of price, coverage and service.
OK, enlisting the services of a health insurance broker seems like a good idea. Now the next question arises, how does one find such a broker who is qualified to do the job and how does one know who are the effective ones and the ones that are less so. There are certain criteria that these people must meet in order to be in business. They must be licenses by the State, and unlike an agent who represents an insurance company, health insurance brokers represent you the client only.
Many of the best health insurance companies are based online. The trouble is with 100's of different health insurance companies to choose from, only by using an individual with knowledge of the whole market, can you make an informed decision.