Are you considering buying health insurance for you and your family? If so, you may benefit from the assistance of a health insurance or medical insurance broker. 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 many respects are in great demand by people who are in a similar situation and need health insurance. People that are more likely to enlist the services of a health insurance broker are those that do not have access to employer-based insurance (those that are self-employed) and others with pre-existing conditions that may make it more difficult to get health insurance.
In many respects, the role of a health insurance broker almost mirrors that of a realtor. While a real estate agent helps the consumer find their dream home at an affordable price, in a similar vein, health insurance brokers work to find the most economical rates for health insurance for their clients. Once the perfect health insurance is found, both the insurance company and the customer sign documents legalizing the agreement.
To many, health insurance brokers seem to only be on the side of the health insurance companies. This however, could not be less true, as health insurance brokers work to benefit the customer. In fact, one of the most important tasks of a health insurance broker is to not only have knowledge of the different health insurance companies available but also to know which ones are the best choice for their clients. Even more, health insurance brokers are also helpful in more ways regarding your health insurance plan. Health insurance brokers will be able to provide information on premiums, deductibles and co-pays and much more. Health insurance brokers often receive compensation for their work on health insurance sales; however, they are only paid once the potential customer successfully purchases the plan.
These payments that the health insurance broker receives are referred to as commissions. Health insurance brokers can receive the payment is a number of ways: the insurance company pays the commission, the customer themselves pay this fee, or even in some cases both the insurance company and the customer each paying towards the health broker’s commission. 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.