WHOM SHOULD WE BUY INSURANCE FROM

insurance

As the article caption says, it is very crucial as well as tricky for a beginner to decide between an agent, broker, and an online platform to buy insurance plans.

Insurance is a fairly straightforward product: one pays a premium to cover the risk to receive compensation from an insurance company if an insured event occurs. In other words, it is the same as a customer paying money for goods or services in return. It is just like any other business where we witness buying and selling of goods or services.

The predicted insurance payout is only different because it depends on variables the consumer cannot control. Nonetheless, the general consensus is that dealing with insurance companies is difficult and that it is a complicated subject.

It's easy to understand why. The insurance company will make sure that the amount being released is justified because, if and when it pays out, the amount is significantly greater than the premium the policyholder paid. That’s why the policy contract has everything written in complex language (the company tries to protect itself), the claim process is complex (to avoid potential fraud) and the prevalent perception that dealing with insurance firms is best avoided.

Here comes the helpful insurance agent. This person serves as a mediator between the insurance company and the customer and was adept at navigating complex procedures. He could assist with your claims and policy service requirements in exchange for the sale of the insurance policy. You might even skip reading the policy contract because you were never required to visit or speak with your insurer. The insurance companies prefer this arrangement because it allows them to continue with the complicated procedures and legal terms while avoiding communicating with their actual client, that is you.

Times have changed; just like all businesses, insurance firms have improved customer service. Customers are frequently served by inbound call centers, and regulators closely monitor complaints and improper selling techniques. Policy language has been simplified, and an explosion in transparency has been sparked by the internet. The advisor is still present, but his function as a service middleman has diminished.

Parallel to this, insurance products are becoming more generic and e-commerce friendly, a trend that is being favorably reflected by rising online sales.

It does make sense to purchase online because premiums are less expensive and processes are simpler, subject to restrictions such as conducting thorough research before buying. Yet, options are constrained and a company's complete line of products is still not accessible online.

Nonetheless, by all means, hire an advisor or broker if you are among those who still feel comfortable dealing with a human middleman. You are not alone, according to statistics, as 44% of consumers who conduct insurance research online ultimately decide to work with an agent.

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