Why You Need an Insurance Broker


You have a choice when it comes to how you purchase your insurance policy, a choice that can mean the difference between a good buying experience and a great one. You make the decision to go directly to the insurance company and buy a plan through them, or you go to a brokerage and speak with a broker. But what’s the better option?

Many people have the mistaken belief that, by going directly to the insurer, you are getting the best possible deal. It’s understandable to think that if you are planning to get a policy from someone, then you should probably deal directly with them, right?

Wrong. There are a number of very important reasons why going through a broker is the best move you can make. This week, we look at the role of an insurance broker and why using one will help you get the most out of your coverage.

Your Friendly Neighbourhood Insurance Broker

Think of an insurance broker as both your personal and professional insurance advisor. They work with a network of companies and providers and can help you get information for all your insurance needs. Whether it be over the phone, online, or in person, your broker can go over all the details of a policy to make sure you fully understand everything involved.

Personalized Service

Your broker is not tied down to any one insurance provider and this gives you a huge advantage for getting tailored service. Where certain representatives can only offer and recommend plans by their company, your broker is able to search a number of policy types from a plethora of carriers.

Don’t rely on comparison websites or trying to figure out all of the different details offerings on your own. A broker will handle this for you and explain everything to you in a clear way. You may think you know all you need to know to buy an insurance plan, but you’re bound to miss something. Don’t use the small amount of knowledge you may have about buying and comparing plans to commit on a purchase.

Shedding Light and Highlighting Opportunities

Your broker will point out the fine print in a plan that may seem too good to be true. If you are buying your policy without the aid of a broker, you’ll simply gloss over this or read it too quickly to fully understand it. The reality is, there are terms and phrases in the fine print that you don’t understand, unless you’re a professional. Your broker understands all of this and they know how to relay that information to you, pointing out what matters and what doesn’t.

Finally, your broker is going to notify you when there’s an opportunity to get more out of your plan. Going through the buying process alone, you’ll miss out on these, but the agent will make it known to you. Riders are a great example of this, you can be missing out on additional and beneficial bonuses by not using a broker.

No hidden Costs or Fees

People tend to worry about paying extra for the use of a broker, this is not true. Brokers do receive a commission as it’s how they make a living, but it’s not at an additional charge from you. Instead, the agent is paid by the insurance company you get a policy with.

It works as follows: because the broker brings the insurance company your business they get a commission. This comes from a portion of the premium you pay to the company. However, the premium you pay is the same amount if you were to get the policy directly through the company, so you don’t need to worry about facing higher premiums.

In the end, you aren’t paying more by using a broker. In fact, you may end up paying much less. It is the broker’s job to get you the best deal on the market by highlighting and making sure you know what the best current insurance policy are.

Looking Out for You.

At Canada Life Insurance, we work with over 20 different Canadian Providers to make sure you find the best plan that works for you. With all the options we offer, you will find a life insurance plan to guarantee your family’s financial future. Don’t tackle the buying process on your own and end up paying too much or missing out on valuable opportunities. Let us help you obtain the best life plan for you and your family.