What Do You Know About Policies
If you or your family require health insurance, then an experienced health insurance or medical insurance broker may be able to lend a hand. What is a health insurance broker? In simple terms, a health insurance broker is someone who helps connect people looking to purchase insurance with health insurance companies. Health insurance brokers are in fact popular, as many people who are in need of health insurance use their services. Although health insurance is used by a variety of people, they are often used by those who are self-employed (and do not have access to employer-based insurance) and those with pre-existing conditions– as these two groups may face more challenges when looking for health insurance.
In many respects, the role of a health insurance broker almost mirrors that of a realtor. For example, just as a real estate agent works to find the best house at the best price, insurance company brokers look for the best insurance rates for their consumers. Once the insurance agent has effectively done their job, both the consumer and a representative from the insurance company sign legal documents to legitimize the transaction.
While it appears as if the health insurance broker is looking out for the best interests of the health insurance company, this is simply not the case– the health insurance broker is working for the best interest of the consumer. Above all, one of the primary roles of a health insurance broker is to be knowledgeable of the health insurance companies available– and of those insurance companies, which ones are right for the consumer. Health insurance brokers can also be a great source of information about health insurance as they would be more privy about details in your health insurance plan– including information about monthly premiums, deductibles and copays and even information about how to file a claim– if you need to. It is even possible that your insurance broker may be paid a small sum for referring consumers– only in the event that the customer actually signs up for the service.
These payments that the health insurance brokers work for are often referred to as commissions. Health insurance brokers who do work on commission can receive their payment for their work in multiple ways. First, the insurance company themselves can pay the insurance broker their commission. Secondly, during the signing of the insurance purchase, the consumer themselves would pay this commission. Finally, in some cases, it even is possible that both the insurance company and the consumer would be responsible for paying the health insurance broker. In the end, however, if the consumer is happy with their insurance and the insurance broker did a great job matching them to a health insurance plan, the consumer may see this fee as a well-deserved investment.
As health insurance brokers are required to be licensed, you can rest assured that they will be working for you.