Why experience matters when choosing a health insurance broker

Health insurance should give you access to the medical care you need when you need it most. Still, it can be a tricky area to navigate, especially if you’ve never taken out health insurance before, but that’s where an experienced health insurance broker can help; here’s how.

What is an insurance broker?

Insurance brokers act as a link between you and insurance companies. Their role is to help you find the best insurance for your needs and budget. Brokers will usually manage the claims process on your behalf as well, simplifying the whole process for you.

Brokers cover a wide range of products, but can be particularly helpful if you’re looking for a more specialized type of policy, such as business, life or health insurance.

A broker can also help if you’re struggling to find affordable insurance because of your risk profile, for example, if you want private health insurance but have a history of poor health.

If your insurance needs are relatively simple, you won’t necessarily need an insurance broker, but the benefits of using one include:

Professionalism – brokers have specialist knowledge which can be particularly useful if you are looking for a niche product or are not sure what you should be looking for in a policy.
Impartiality – independent brokers are unbiased so any advice you receive should be based on your needs and not on financial incentives.
Saving time – the broker searches for you, bringing you the most suitable policies to choose from.
Risk analysis – experienced brokers will be able to recognize and assess risks that you would otherwise not consider, helping you to keep your losses as low as possible.

Is health insurance through a broker worth it?

Health insurance can seem overly complex. This is often due to unfamiliar terminology and the fact that there is no real standardization within the sector as all health insurance companies operate on their own terms.

A broker with experience in the health insurance market will be able to walk you through all the options available and (more importantly), explain what it all means in plain English. In an area such as health insurance, this expertise can prove invaluable as they will be able to discuss specific terms and conditions, along with any policy limitations so you fully understand what is covered.

How are health insurance brokers paid?

One of the key areas that needs to be clarified is payment terms. Most brokers work on a commission basis, so if you buy a policy, the health insurance will pay the broker. Brokers may work for a fixed fee or a percentage of the policy price.

Usually, a visit to a broker will not cost you anything but some still charge a small consultation fee (refundable if you buy a policy). If there is a fee to pay, they should tell you up front and make it clear what the fee is.

Agents vs. Brokers – Be clear about who you’re talking to

Insurance brokers are independent advisers which offers unbiased advice. They will be able to show you the policies of different health insurers and objectively discuss the advantages or disadvantages of each.

Crucially, because brokers are not affiliated or tied to one particular provider, they are not incentivized to sell you a particular policy or steer you toward a particular health insurer.

Agents, on the other hand, they work for one insurance provider and will only be able to offer advice relating to the insurance provider they work for. Agents can also be incentivized through commission, so it’s in their best interest to sell you a policy (even if it doesn’t quite fit your needs).

The difference between the two is an important distinction, so before you discuss anything, make it clear whether the person you’re talking to is an agent or a broker.

Are insurance brokers only for new policies?

You can use an insurance broker at any time. Whether it’s finding a new policy, renewing one or discussing your options if you want to switch providers.

Illustration of two people talking showing the 7 benefits of working with a health insurance broker. The text reads: "7 advantages of working with a health insurance broker: 1. Saves you time; 2. Brokers are impartial; 3. Help with jargon and complexity; 4. Support during renovations; 5. Probably saves money; 6. Knowledge of the health insurance market; 7. Support when you submit a claim.

Is it more expensive to buy insurance through a broker?

Using a broker should not affect your premium. In other words, your premium will not be increased to cover the brokerage fee.

Part of a broker’s job is to make sure you get the right policy at the best price. This doesn’t always mean you’ll get the cheapest policy on the market, but it should mean you’re getting value for money and a policy that reflects your own health needs.

Brokers usually have access to a wider range of policies compared to what you can find on a comparison site. Often the policies they have access to are more competitively priced.

Does it matter how experienced the broker is?

As with all careers, experience is very important. When it comes to health insurance, an experienced broker is more likely to have extensive knowledge of the market and all the products available compared to someone just starting out.

Experience can also mean that brokers are more aware of potential pitfalls, particularly related to pre-existing conditions and the claims process, as well as the policy itself. Along with their expert technical knowledge, an experienced broker can also encourage you to look at the bigger picture, for example, if having children is on the horizon, they can steer you towards a policy with terms that are more child or family friendly.

It’s also important not to underestimate how important experience can be in finding the right coverage if your needs are very specific or you’re concerned about your long-term health.

That doesn’t mean insurance brokers who are new to the industry can’t give you the same advice. It’s just that their knowledge may not be as deep or broad.

In addition, don’t forget that brokers can also help with the claims process itself. Someone with experience or with a team behind them will have more practice in processing requests efficiently.

What can I expect from an insurance broker?

All insurance brokers work a little differently, but the main steps include:

In your initial conversation the broker will discuss your needs, this may mean they ask you personal questions, but it is important that they clarify what is important to you and why. This could mean being asked:

About any existing conditions you have or any treatment you’ve had before.
Why are you interested in health insurance now?
How much you want to spend.
Any concerns you may have about how your family medical history may affect your policy.
Whether you want an individual policy, joint or family policy.

Based on your discussion, your broker will then search for suitable policies

2. Policy discussion

After their search, your broker will discuss the health plans he has determined are suitable. They will go through the reasons why they were chosen, including the pros and cons of each, and highlight anything that is particularly important.

Your broker should be able to explain key terms in a clear manner. For example, explaining how your policy is insured and how this affects the claims process. They should also be able to walk you through your payment options as some insurers offer different ways to manage your premium – such as co-payment options, excess discounts and no-claims discounts (we cover all of these in our guide to demystifying health insurance).

You should always feel able to ask questions (most brokers will actively encourage you to do so) and raise any concerns.

If you decide to buy a private health insurance policy, your broker can arrange this for you. You will usually pay directly to the insurer rather than an intermediary.

Most brokers will continue to support you as long as the policy is active. This often means that they will manage all your requests on your behalf and be able to answer any questions that arise.

Where can I find an experienced insurance broker?

Brokers must be listed in the Financial Services Register. The register is overseen by the Financial Conduct Authority (FCA) and helps to ensure that anyone providing a regulated service (such as financial advice) operates fairly and honestly and acts in the interests of consumers.

Using a regulated broker also means you are protected through the Financial Ombudsman Service and the Financial Services Compensation Scheme. This ensures that if you have a complaint or lose money through the deal, you can find a solution or seek compensation.

You can check the register of financial services free of charge at the Office for Financial Operations. You should also check if the broker is authorized to provide the particular service they are offering. The register clearly states the activities that each company or individual can perform, for example insurance, investment consulting, consumer credit.

You can also find a regulated insurance broker using the British Insurance Brokers Association (BIBA) search engine. BIBA is an insurance trade association, so unlike the Financial Services Register, businesses and individuals don’t have to join (so don’t panic if the broker you’re using isn’t a member of BIBA).

The Association of Medical Insurers and Intermediaries (AMII) is another trade association, but specifically for anyone offering health insurance advice. Again, brokers do not have to be members of AMII, but if they are, it means they have promised to work in accordance with the code of conduct.

If you have found a suitable broker, it is also worth looking at the reviews that you can find. If you can, use independent websites rather than the broker’s own website (if it has one). Referrals are also a good way to find a broker so if you know someone with private health insurance, ask them if they can recommend someone.

Understanding health insurance options

If you want to feel prepared before you contact a broker for the first time, you can learn more about health insurance in our series of in-depth guides, including how to get private health care, the average cost and how premiums work.

You can also search for a policy using our comparison tool which can give you a good idea of what’s available before you speak to an expert.

Health Insurance Information You Can Trust!

People trust the provision of unbiased information about health insurance. Rated excellent, 5 out of 5 stars on Google Reviews. Read more reviews here.

“Clear and concise information. Very helpful in finding an affordable health insurance premium for our family”

Source link