Three Reasons YOU Need an Independent Insurance Advisor
When was the last time you consulted an independent insurance advisor? For many people, the answer is, never. Considering the importance of insurance, this is shocking. For starters, many insurance companies are only interested in the bottom line. This means the primary focus is to increase profits. These insurers have little concern for consumers and sell any product they can pass as legal. Consequently, they tend to have high agent-turnover, low client-retention, and a structure resembling a house-of-cards, rather than a prospering business. For these companies, the financials statements may look good on paper, but this strategy is not sustainable.
There are many significant advantages to working with an independent insurance advisor. Independent insurance advisors offer client-focused relationships, access to quality insurers, and centralized control over policies.
1.) Client-Focused Relationships
An independent insurance advisor has you, the client, in mind. The independent insurance advisor is not contractually obligated to a specific insurer. This allows him or her to find reliable companies and products that fit the client’s individual needs. Additionally, the independent insurance advisor has a fiduciary duty to the client. Therefore, he or she are more likely to act in the client’s best interest.
Ask yourself, “How long do I plan on having insurance?” If you are like most people, you will have insurance until the day you die. Thus, when purchasing insurance products it is important to think about the long-term. The industry is always changing and companies constantly pursue new ways to increase profits, often at the expense of clients. As a consumer, you need a client-focused advisor on your side, one who will help you make educated decisions.
Would you rather…
- A) Work with a random agent in a call center who picks your lucky name? One whose primary focus is to sell the most profitable products for the company at that time.
Or,
- B) Build a long-term relationship with an agent you can trust? One who will objectively consider your risks and provide unbiased solutions.
When put this way, it seems like an easy decision. Most will agree, building a relationship with an advisor who understands his or her personal situation is important. Although, the reality is that the majority of people still choose the practices described in option A. Whereas, the latter option above is obviously the better choice of the two. As a consumer, It is wise to develop a relationship with an advisor who can asses your individual needs, annually.
2.) Access To Quality Insurers and Products
Independent Insurance advisors present a unique advantage. That is, they access a network of insurers, acting as a liaison between the insurer and client. Ultimately, they provide vital industry insight. In turn, directing a client to the company that best fits his or her specific needs. In addition, they have a dependency on maintaining a healthy relationship with the client. For this reason, they are more likely to provide quality products that actually benefit clients.
Having an independent insurance advisor grants access to countless products. Thus, making it more likely to select those that work for your specific risks. An independent insurance advisor has a fiduciary duty to give unbiased advice about products and companies. This means they are more likely to select those that benefit you.
Independent insurance advisors typically offer a product based on its value, the insurer’s financial security, and prior experience. Quality insurance may not always reflect in the lowest price. Insurance policies have minor nuances in language and built-in coverage. These minor differences can lead to major gaps in coverage between policies. Therefore, seek the advice of an advisor to find the best available products from top-rated, trusted insurers.
3.) Centralized Control and Management
Independent insurance advisors offer more control and flexibility over insurance portfolios. As client-focused advisors, most understand a client’s needs will change over time. And, they are happy to provide alternative products that make more sense for the client and his or her family. Therefore, the client is more likely to have sufficient coverage throughout his or her lifetime.
Independent insurance advisors can take the burden out of maintaining policies, filing claims, and renewing coverage. By combining all policies under one central management group, the client gains more control and flexibility.
In addition, it is easier to buy, maintain, and renew policies when managed by one central agency. This means an independent insurance agency that manages policies across multiple insurance companies can simplify the insurance process, greatly. Furthermore, many independent insurance advisors are local businesses and operate within the community. For this reason, it is easy for advisors to provide an exclusive, in-person experience for clients.
SWPAdvice: Independent Insurance Advisor
In conclusion, seeking advice from an independent insurance advisor has many advantages. For example, independent insurance advisors are licensed agents who work in the client’s best interest. Additionally, they provide access to a network of top-rated, and trusted insurers. As a result, the client gains industry insight and experience, as well as centralized control of their portfolio. Hence, working with an independent insurance advisor typically results in a better experience for the client.
An independent insurance advisor is local, puts clients first, offers products from multiple insurers, and provides personalized control. Most importantly, independent insurance advisors greatly minimize the risk of being underinsured. For these reasons, it is in the client’s best interest to have an advisor.
