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The new-age insurance buyers are on the fence about buying an insurance policy directly from the insurance-providing companies or an insurance broker. In the last few years insurance brokerage companies have gained a good reputation.

According to reports a considerable percentage of people trust insurance agents over insurance companies due to multiple reasons. Convenience being the first and foremost of all, saving time and money, getting adequate help during claim processing, etc. are some of the benefits people get when they buy insurance policies through insurance brokers.

But still, there are people who even after finding it hard to go through the tiring process of insurance buying hesitate to turn to insurance brokers. And undoubtedly the rising rumors about insurance brokers are to blame for such a thing.

There are a lot of misconceptions built around the idea of buying insurance policies through brokers. And we are here to clear the air. We will talk about some of the biggest misconceptions about insurance brokers.

BURSTING THE BUBBLES REGARDING INSURANCE BROKERS

Brokers Cost Money Increase Insurance Premiums

Most people who do not prefer buying insurance policies through an insurance broker do so since they believe that brokers cost them money. They think that insurance brokers earn from the premiums they pay to the insurance company and therefore the cost might be carried by the buyer.

Which is incorrect. Insurance brokers or consultants don't charge a fee from the insurance buyer. Instead, they earn from the insurance company in the form of a commission for selling their insurance policies. That is the reason you will find most brokers do not charge any fees for the services they offer.

Using a broker therefore does not increase your premiums. Instead, they help you choose the right policy according to your budget and save you from many expensive mistakes such as buying a policy with inadequate coverage or high premiums.

Brokers Work For Insurance Companies

An insurance broker works for the insurance buyer. No matter the common misconception about insurance brokers, but that is what the truth looks like. Many people don't understand the concept of an insurance broker. Sometimes they misunderstand brokers with insurance agents.

Insurance agents are those who represent a single insurance provider. They know about that company inside and out and they help you find the best insurance plan available that their company offers.

Let me repeat it once. An insurance agent can only help you with policies that are offered by their company. Therefore, if you want to look for more options from multiple providers, you will need a broker.

Insurance brokers represent themselves as individuals. They work with several insurance companies and search around to find the best available plans no matter which company is providing it. They do not impact the premiums like agents might and therefore you get an insurance policy by paying the exact premium the company is charging.

Insurance brokers work on behalf of you. They compare policies and companies and bring you the best available insurance policies to choose from. Alongside helping you choose the best available plan an insurance broker is also liable to help you while settling a claim. They help you with the right documentation so that your claim does not get rejected.

Brokers Sell You Insurance Policies With Higher Premiums For Higher Commissions.

This is a complete misconception that makes people run away from insurance brokers. Though insurance brokers indeed earn money on commissions, it is not true that they sell expensive plans to earn more. It is because insurance brokers are not paid any percentage of the total cost of the insurance policy and that is not how the commission in insurance broking businesses work.

Insurance brokers try to find out the most affordable plans that can cover you for all your requirements and still don't cost you a fortune. The cost of the premium does not impact the commission of the broker. Whether you are buying a policy for ₹500 per month or ₹5000 per month the broker will earn the same amount of commission and therefore finding you the best coverage for the lowest price is what they do.

Not only that, but insurance brokers also help you find insurance policies with EMI facilities so that you can get good coverage by making payments every month. So remember that it is in the broker's best interest to find you the cheapest plants with maximum benefits that align with your needs.

Insurance Brokers Don't Pay Attention After Selling A Policy

If you ask any insurance buyer who prefers buying insurance policies through brokers, they will tell you why they do so. This is because they get far better after-sales service from an insurance broker as compared to an insurance agent.

The job of an insurance broker does not end at the selling of the policy but once your claim is settled. Therefore taken from buying a policy until the claim settlement you can expect an insurance broker to be by your side always.

Since insurance companies need to pay for your coverage sometimes there are tricky terms and conditions that you fail to understand while buying the policy and end up at a claim rejection. But with an insurance broker that does not happen. Since they are aware of the norms of an insurance policy, they help you gather your documentation during a claim settlement so that your claim does not get rejected.

An Insurance Broker Is Not As Knowledgeable As An Insurance Company Agent

That is incorrect. The main difference between an insurance agent and an insurance broker is that an agent can give you knowledge about only the policy offered by an individual company, whereas an insurance broker is well aware of multiple plans provided by multiple insurance companies.

While buying an insurance policy you must go through the terms and conditions written on the piece of paper you have to sign. With the help of an insurance broker, you can go through all of them slowly while understanding everything so that you know what you are investing in.

An insurance broker is working on your behalf. Therefore you don't need to hesitate to ask them for as much knowledge as you need before and after buying an insurance policy.

CONCLUSION

Insurance brokers are trusted partners who help many individuals make informed decisions when it comes to buying insurance policies. Jaika Insurance Brokerage has been a trusted partner for thousands of people in central India for the last 19 years we're providing them with the right insurance plan choices and support during claim settlement.