Although it is not a popular topic of conversation, Canadians must have a plan in place that takes care of their families upon their passing. One way to do this is with life insurance coverage. However, exploring the numerous life insurance policy options alone can be challenging, especially if you aren’t an insurance expert.
Rather than spending hours digging through policy after policy attempting to translate insurance jargon, Canadians can rely on the expertise of life insurance brokers. People often hire brokers to help them navigate the complexities of health insurance while narrowing down their options to plans that offer the benefits they are looking for.
Contrary to popular belief, life insurance policies come in several different layouts and coverage levels. As such, aspiring policyholders can find insurance plans that satisfy their budgeting needs while providing peace of mind. Brokers help people explore these options and find the plans that best suit their financial and insurance needs.
Working with a life insurance broker offers numerous advantages. This article reviews the top ten benefits of working with a broker and how they can help you find the best policy for your unique coverage and financial needs.
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What Is the Difference Between an Insurance Broker and an Agent?
People often confuse life insurance brokers and agents since they have similar jobs. However, the two professions have a few key differences.
First, an insurance broker works independently rather than for one specific company. As such, they help clients find life insurance policies by gathering quotes from multiple companies. This benefits the client as they can treat the broker as their one-stop shop for exploring life insurance policies.
Life insurance brokers are also experts in their field. They understand how different types of policies work, which companies offer the most competitive rates, and which coverage options clients can benefit from the most. Rather than generating sales for a single insurance agency, a broker prioritizes the needs of the client by taking the time to explore multiple policy options from different companies.
Meanwhile, an insurance agent typically works for a single insurance provider. Although they are knowledgeable in their field, they often specialize in one type of insurance and can only suggest policies offered by the company employing them.
Finally, life insurance brokers provide ongoing service for their clients. From insurance-related advice to policy changes, brokers continuously work with their clients to ensure they help meet their insurance needs. In the emerging age of the insurance fintech space, some companies like Insurdinary.ca have even built products that allow you to compare multiple life insurance quotes online, from the comfort of your own home. Explore it yourself in the photo below.
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Ten Benefits of Using a Life Insurance Broker
Life insurance brokers offer numerous advantages to their clients. However, these are the top ten.
1. Financial Security
Since life insurance brokers work for the client rather than a company, they can find policies with the lowest premiums and the greatest benefits. When someone hires a broker, they get a professional dedicated to finding the best life insurance policy possible. This means finding policies with affordable premiums and impressive payouts.
Life insurance agents can only offer policies provided by their employer, limiting the client’s options. Having access to a wider variety of life insurance policies increases the chances of finding a plan that won’t cause a financial strain. This also gives the client a better chance at finding a policy with greater benefits, giving them peace of mind knowing their families will be cared for following their passing.
In addition, since the broker has no obligation to a single company, they have no reason to upsell clients. This unique service offering allows aspiring policyholders to be confident that they are getting the best value. A life insurance broker’s sole purpose is to ensure that you are getting life insurance for the right reasons, at the right price.
2. More Insurance Options
A life insurance broker often provides more than life insurance. They can also offer insurance for home, auto, business, and more.
As insurance experts, a broker can help clients save money while finding policies with the coverage they need. They also take the time to help people navigate their options while explaining complex insurance jargon so clients know precisely what to expect from their insurance company and specific policy.
By having knowledge and experience with multiple companies and types of insurance, brokers can also help clients find unique discounts, like bundling multiple policies with the same company.
3. Personal Attention and Service
Although brokers have multiple clients, they can give each one dedicated attention and personalized service. Life insurance brokers take the time to meet with their clients to learn more about them and their insurance needs. By creating a personal relationship, brokers can better help people find the policies they need.
This relationship creates a better experience for both parties. With insurance agents, clients often feel more like a number than a person. By having an insurance expert take the time to form a relationship and understand their unique needs, clients can have a better experience shopping for life insurance policies.
This personal attention also makes it easier to understand policy details. Without experience working in the insurance industry, it can be difficult to understand certain terminology and regulations provided by insurance policies. Brokers want their clients to have the best policy possible, so they ensure they fully understand policy coverage, limits, and terminology before bringing up contracts.
Finally, personalized service means faster response times. If a client has a question about their policy or the enrollment process, they don’t have to go through multiple people before reaching their representative. Brokers are also already familiar with their clients’ situations, improving communication and making it easier for clients to get the assistance they need.
Here at Alliance Income, you can expect nothing less than top-rated client services from a team of dedicated professionals that genuinely keep your unique situation, top of mind.
4. Claims Assistance
Filing an insurance claim is often more frustrating than navigating hundreds of policy options. Fortunately, part of a broker’s ongoing service is assistance with claims.
Regarding life insurance, beneficiaries are often the ones filing the claims. Adding this stressful event to a family’s grieving process creates an often overwhelming experience.
A broker understands how complicated the claims process can be, especially for life insurance. Should a family need to file a claim upon the passing of their loved one, the broker steps in to help. Since they formed a relationship with the policyholder, they can better help the family understand the claims process and gather the necessary paperwork, providing some relief and peace of mind.
5. Industry Expertise and Certification
A life insurance broker is not just anyone who can look online and pull up different quotes. Brokers receive specialized education and certification from the Registered Insurance Brokers Association of Ontario.
This education and special training ensure brokers are experts in their field so they can effectively help clients find the insurance they need. Additionally, it helps clients better understand the complexities of life insurance since they can ask their broker and get a quick response.
6. Personalized Advice
Life insurance brokers can provide personalized advice that addresses their client’s unique concerns and situations. By getting to know their clients, they can better understand their unique needs, both financially and insurance-wise.
As a result, they provide personalized advice that applies to a client’s unique situation. Many clients believe this is one of the best benefits of working with a life insurance broker, as salespeople often provide generic suggestions that don’t always answer the client’s concerns.
Life insurance can be complicated, so policyholders often have several questions regarding how the claims process works, how much coverage they should get, and how premium payments work. Brokers can essentially help clients design their insurance packages by advising which insurance companies offer the greatest benefits, which have the lowest premiums, and which offer features or additions that would benefit the client.
Brokers act more like advisors than salespeople. As a result, they don’t push clients into purchasing policies that may not offer all the benefits they are looking for. They take the time to ensure clients understand what potential policies entail and how they could be advantageous to the client’s unique situation.
Brokers are also honest, so they often advise clients against certain policies if they believe they don’t have the best benefits. This honesty and personalization give clients peace of mind, knowing they can enroll in the best possible policy. Oftentimes, people who have pre-existing conditions such as being a smoker, being overweight or with a disease, think they can’t secure life insurance. A broker will help you navigate all of those conditions.
7. Solid Life Insurance
The whole point of hiring a life insurance broker is to find quality life insurance that provides the benefits a client needs within the desired premium range. Thanks to enrollment periods and contracts, shopping for insurance without professional expertise can be risky.
Brokers understand this risk and take their jobs seriously. They often don’t sell a client on the first policy. They walk them through multiple options from different carriers, carefully weighing the pros and cons of each. By considering the client’s lifestyle, financial standing, and desired benefits, they can find policies that check all the boxes and minimize coverage risk.
Whether looking for term life insurance or mortgage insurance, clients can rest easy knowing that a broker will help them find and enroll in the policy they need.
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8. Free Services
Many clients are surprised to learn that brokers do not charge fees for their services. Instead, brokers get their money from the insurance companies they contract with.
Instead of receiving a regular paycheque from the same company, brokers receive compensation for each policy they sell. Since the insurance companies pay them, they have no need to charge clients for their services, saving them even more money.
As a result, clients can receive expert advice and guidance for free, further improving the life insurance purchasing process.
9. Customizable Service
Life insurance brokers provide the convenience of an online service with the personal touch of an in-person advisor. By working with a broker, clients can manage their policies online or by talking with their life insurance advisor.
Most modern brokers set clients up with a digital platform that allows them to view and manage their life insurance policies. As a result, clients can access important information in a matter of minutes, even if they are cities away from their broker. However, the broker is always available to answer questions and provide guidance when needed.
10. An Easier Way to Explore Multiple Choices
Canadian law requires brokers to show clients at least two insurance companies when exploring quotes, although they often gather much more than this. Most brokers contract with five or more companies, giving clients an impressive number of life insurance options to explore.
This longer list of options means a wider variety of benefits, premiums, and coverage options. When it comes to life insurance, it’s essential to find a policy that offers a beneficial payout without suffocatingly high premiums. By having access to more choices, clients are more likely to find policies that satisfy all their preferences and requirements.
What Happens When You Work With a Life Insurance Broker?
When working with a broker, the first step is an initial meeting. The broker needs to know what kind of insurance their client needs and other information, so they will ask various questions to get to know them better. After gathering this essential information, they can collect several quotes to review with the client.
When brokers gather quotes, they find policies based on the client’s desired coverage amount, premium range, and numerous other factors. When reviewing policy options, brokers also help clients assess various risks and how to manage them. While they provide valuable guidance, the ultimate decision is up to the client.
A broker’s services don’t end once the client picks a policy. They also help the client during the enrollment process by walking them through it step-by-step. Once the policy kicks in, the broker remains available to answer questions, address policy concerns, and help with the claims process.
How to Find a Reputable Life Insurance Broker
Although searching for a reputable broker requires diligence and research, it is significantly easier than exploring life insurance options independently. Finding a reputable broker with extensive industry knowledge and necessary licenses is essential to achieving a positive experience.
When looking for a broker, clients should consider these factors:
The first thing to look for when exploring brokerage options is the insurance products offered. While most brokers offer multiple types of insurance, they don’t always offer everything. For instance, some brokers may only offer home or auto insurance, which is not helpful for those needing life insurance.
After finding brokers that offer life insurance, see what insurance companies they partner with.
The next thing to look for is the broker’s values. For example, some brokerages are family-owned businesses, while others are large corporations. Although they provide similar services, some clients prefer one over the other.
Additionally, many brokerages reflect their values through community engagement. For example, some host sponsorships and community donations. While these efforts do not directly correlate with their industry expertise, it can be beneficial to work with a company with community-focused values.
Finally, it is crucial to determine the broker’s reputation. Brokers with positive reputations offer better services for their clients. Although clients do not pay for broker services, it’s important to ensure that the experience will be pleasant.
To determine a broker’s reputation, look at their online reviews on Facebook, Google, and other reputable review sites. Many also have reviews on their websites or can provide references.
How Do You Know If You Found a Good Broker?
A reputable broker will have a professional, easy-to-navigate website. Although many of their services are in-person, every good company and professional should have a solid website that makes it easier to explore their offerings.
A good broker will also genuinely care about their clients. Rather than seeing them as another sale, brokers see clients as fellow neighbours seeking advice on important matters, like life insurance.
A reputable broker takes the time to understand their client’s unique needs, concerns, and goals. Brokers also aim to save the client money by finding policies that offer a balance of affordable premiums and sufficient coverage.
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Finding the right life insurance policy doesn’t have to be a headache. At Alliance Income, we strive to help clients find what they need without the hassle of a pushy sales process. Here’s how it works:
- You fill out our online form, helping us get to know you better.
- You can apply online or ask one of our representatives to provide guidance.
- We show you multiple quotes from the top insurance companies in Canada.
- You secure your plan with the help of an Alliance Income advisor.
We understand how important it is to have a life insurance policy. Life insurance helps safeguard your assets and protect your loved ones. The right life insurance policy can give you peace of mind, knowing that your family can receive the support they need even if you pass.
We help clients find their perfect policies by comparing quotes from Canada’s leading insurance companies. Whether you are new to life insurance or want to explore new policy options, our team is happy to help.
Get started today by filling out our form. An Alliance Income life insurance broker will reach out to you and help you find your ideal life insurance policy.