Insurance broker versus direct sellers: which is better?

Technology has truly changed the way we do business. Before, the only way people can buy insurance is through an agent or a broker. But now, with the help of the internet, people can now buy insurance directly from the seller. This seems very accessible and convenient. Direct buying from the insurance company can be faster and a lot easier for the tech-savvy generation who are not acquainted with the idea of a middleman. But there are still key advantages when you hire an insurance broker. Below are both pros and cons of using an insurance broker and direct insurance.

Insurance broker

Insurance brokers are the ones who serve as the liaison between the client and the insurance companies. They make sure that the transactions come off smoothly and that both parties understand the stipulations of the products. They make money from commissions that they get from the insurance company. Over the years, insurance brokers are essential when buying an insurance but this changed thanks to the current internet platform and new demands.

Pros

Having an agent means the clients can experience a personalized customer service. This means that they are well taken care of. Clients no longer need to worry if the insurance application is being processed. When things go south, the insurance broker is there as a backup for the client. They can make an appeal when the client needs it. Insurance brokers can also explain the stipulations of the insurance policy well to the unfamiliar client. They will become the dictionary in case some terms are not being understood. Documentations and saving data are also not a problem since insurance brokers are organized professionals who can easily save and store data.

Cons

Again, some people feel uneasy about working with the middleman. They feel like the brokers make the process of application more burdensome. Some clients also have issues with the brokers who they work with. It’s important to choose the broker wisely and see if they have great characteristic before working with them.

Direct buying

People nowadays can now buy insurance straight from an insurance company without any help from insurance brokers. Through the help of the internet, buying insurance can take only a few clicks. Online insurance companies allow a five-step application process that can only take a few minutes. All they ask are personal information including bank details.

Pros

The convenience that direct buying brings is undeniable. Imagine being able to buy insurance anytime and anywhere. Some websites offer an instant quote and all you have to do is give your personal information and you are good to go. This works best for people who are in a hurry to buy their insurance.

Another advantage is the lower rate that these online sellers offer. Low-interest rates are just a few of the promos that these online websites want to provide. The fact that there’s no middleman who can share the portions of the payment make the whole thing cheaper too.

Cons

Some of these online insurance companies are fraud. Do your research first before applying for one. Read reviews online and ask questions before putting your precious personal information online. Ask friends for recommendations or simply do a few Google searches. It’s better to be safe than sorry. Another disadvantage is that no one will be there to back you up in case of emergency. What if the insurance doesn’t work when you need it? You can be left hanging on your own wondering how you can get help from the situation that you will be facing.