What is the Difference Between the Life Insurance Provider and My Broker?

A life insurance company is completely different to a life insurance broker. The company is actually the party that provides the policy. They asses each and every application submitted by the broker, and then make a decision as to whether or not they should insure the applicant. If a claim is to be made, this should be directed to the insurer directly. Any other contact after the policy is in force should also be directed to the life insurance company.

The provider will generally sell other general insurance products other than life insurance. On the other hand, a broker acts as a go between with you and the life company. They will arrange the policy on your behalf, generally acting on your instruction. They will source the cheapest and most comprehensive provider oflife insurance to make sure their client’s needs are met adequately.

Some brokers will have staff qualified to give personal advice, whereas other brokers may have staff that are experienced within the life insurance industry, but will not be qualified enough to give advice. It is advisable to ask the telephone representative if they are qualified to give advice.http://www.ciaforinsurance.com/understand-life-insurance/

When purchasing life insurance online, you will find that personal advice is not given, just general factual information, as on this website.

The best way to source the cheapest deal is to shop around, or get a broker to do it for you! By dealing with brokerages or websites that only offer life coverage from one provider limits the chances of finding the cheapest policy. Life insurance brokers are usually completely independent, meaning that their full attention is on finding you the cheapest most suitable policy, rather than a policy from their tied provider, regardless of pricing.

Despite the fact that using a broker is usually on a no-fee basis, they will usually be supplied with a certain amount of commission from the life insurance company. This amount will usually be disclosed in the initial paper contract from them.

life insurance broker

One way that life insurance brokers manage to find the cheapest premiums for their client’s is by sacrificing a portion of the commission offered by the insurance company. By cutting the amount of commission that they take, they in effect reduce the premiums. Always ask your broker if they are able to reduce the amount of commission that they receive. You never know, it might just save you a few pounds every month.

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