Health Insurance Brokers
What Are The Benefits To Using A Health Insurance Broker?
If you’re planning to purchase a health insurance plan, then it might be useful to get in touch with a health insurance broker. A health insurance broker is a professional individual or firm who can provide the health insurance plans of multiple health insurance. In lieu of that, the health insurance company pays the broker a commission. Brokers are regulated by the IRDA ( Insurance Regulatory Development Authority). Brokers also do a lot of institutional business- for example, if an organization wants to buy a group health insurance plan for its employees, then it is best to get in touch with a broker to obtain competitive insurance quotes.
In some ways a health insurance broker is similar like a real estate agent. The health insurance broker tries to find the best deal for the individual who needs a health insurance policy, based on a particular list of benefits that the individual seeks. After finding a plan that is suitable for the consumer, the health insurance broker then tries to make the customer and insurance sign a mutual health insurance contract. One thing needs to be paid special attention here: IRDA clearly stipulates that the broker has to be protecting the interests of the consumer , whereas in the case of an agent, he is affiliated to an insurance company and thus his interests are aligned to the insurance company’s interests.
It is assumed that the insurance broker knows about the health insurance plans of multiple insurers so that he is able to make a proper comparison among the plans. Additionally, they can provide information regarding claims, processing times, customer service and of course health insurance rates or premiums.
Typically, a health insurance broker receives their compensation in the form of a commission. The payment for this commission comes mostly from the insurance company. The commission that the broker earns is typically a percentage of the premium that has been paid by the customer. Also, because the health insurance broker is normally governed by the regulator, they are trustworthy in most cases.
At the same time, you cannot trust your health insurance broker blindly. It is best that you do your own research online regarding price , features etc and then enter into a discussion with the broker so that you do not have to accept the broker’s recommendations on blind faith.