Insurance Consultant

The Difference Between Insurance Brokers/Agents and Consultants

Both insurance brokers/agents and consultants offer insurance advice. But when you compare the two, you need to look at how objective they are. An insurance consultant is not associated with an insurance firm or people that sell insurance. Their clients pay an insurance consultant, and they also do not receive any commission. Because of this they do not have any conflict of interest when making decisions on the commission since they do not receive one.

Do not Confuse the Two

If you look in the phone book for an insurance consultant for financial services, you will find that they are generally agents/brokers. You have to be careful where to look as the services differ between the two. If you use an agent/broker for insurance consulting they have the chance to get information that can be beneficial to them when they want to get your insurance business. There can be some projects that can produce results that are not as good when handled by a broker/agent. They may be hesitant to participate if they feel that their proposal will get anything but the fairest considerations. Insurance agents/brokers are concentrated on insurance efforts, whether it be life insurance or auto insurance, but they may not be qualified in such things as alternative risk financing and non-insurance risk transfers. An insurance consultant will have the capabilities to do things such as these. The job of a broker/agent is to get more policyholders for the insurance company and sometimes they do not have the expertise in other areas of insurance.

Choosing the Right Insurance Consultant

When looking into an insurance consultant, look for one that is qualified to handle your individual needs. If you want life insurance, do not go to a consulting company that deals mainly with auto insurance. Getting good financial advice from a qualified insurance consultant can save you money in the long run. There are specialized insurance consultants who deal only in one type of insurance such as life or health. Many times insurance consultants are used by businesses to see what insurance possibilities are right for them. A consulting company will only give advise on what action is best for that company. By law an insurance consultant cannot sell insurance unless they have a license as an insurance agent/broker. Remember, if an insurance agent/broker is procured, it is their job to sell insurance. An insurance consultant does not have this option, therefore there is not conflict of interest, and they are only getting a consulting fee to give advice on the different insurance needs of the client.

Getting a good financial advisor is key to making the right insurance choices. This is especially true in business as it is important because companies spend quite a bit of money to insure employees. A solid financial advisor in the form of a qualified insurance consultant can save the company money by giving them sound financial advice. Then the company can go out and get the right insurance for them after they have been given that advice from an insurance consultant. It is also a good option to procure an insurance consultant in important insurance decisions for individuals such as purchasing life insurance. Using an insurance consultant can make it so a company or an individual has all of the relevant information they need before purchasing insurance.

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