Knowing how much life insurance to take out or which policy will best suit you and your family's needs can be tricky. Having someone with expertise to help you rather than finding a policy on your own could save you time and money. That's where a life insurance broker can help.
A life insurance broker is essentially an intermediary between you and an insurer. Their job is to source a policy that's matched to your needs and personal circumstances, for a competitive price.
Insurance brokers are often confused with insurance agents; however, they are different. An insurance agent is someone who works for a certain insurance company, or for a number of insurance companies. So, an agent is a representative of an insurance company with a purpose of selling policies to those who need them.
An insurance broker gathers different quotes from various companies and presents them to you. They can help you gather the necessary information you need for the application process, and submit them to different insurance providers.
When the provider agrees, they will then give a binder to the broker who will then present it to you. The binder includes all the terms and conditions of the insurance contract you will enter into.
An adviser can help you find cover from trusted life insurance brands.
Here are some things that you may want to consider when deciding whether or not you require a life insurance broker:
Insurance brokers have a duty of care to you as the customer and their actions should therefore be focused on helping you to get suitable coverage at a competitive price.
Other key duties and responsibilities include:
Given that life insurance premiums can vary a lot, it's hard to give a specific range of the fees you might expect to pay to a broker. Broadly, you might pay them 10–25% of a base premium amount. That's assuming they are charging a one-off fee for one service. You might reduce this if you use the same broker for a number of other insurances, including if you agree to an ongoing fee instead.
Being able to find a good insurance broker is like finding a gem, and in order to do that you have to know where to look for it and the standards you can use in spotting a good insurance broker. There are several places and methods where you can find an insurance broker, some of which we've listed below.
It might be fairly straightforward to work out where to find an insurance broker, but it can still be quite a feat to find a good one. Keep in mind the following:
Also bear in mind that an insurance broker should not charge you a separate fee when helping you secure an insurance policy.
This includes reminding you of the necessary actions you need to take while processing your insurance application, such as getting a physical or medical examination.
A good insurance broker should consider your needs and give you ample time to sort through various policies and think through your decision. They should never impose a policy on you nor hasten you to make a decision.
A good insurance broker is someone who has a wide portfolio of various insurance providers. The reason for this is so they can give you more options and expose you to better policies.
Looking into the broker's credentials can help you confirm that you're dealing with someone who is accredited by the state. You should also search out past reviews with previous clients.
Make an enquiry with a life insurance broker
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