Buying direct to save money on your health insurance is virtually a myth. More and more there are ads on the television and radio leading potential customers to believe that they will save money purchasing directly from an insurance company. In most instances, the insurance company is actually trying to make more money rather than save you money.
Health insurance premiums are regulated by state insurance departments. This ensures that all consumers are treated equally. Whether you purchase the plan directly from the insurance company or you purchase it from an agent, the price must be the same, provided the plans are quoted with the same data, such as area, ages, number of people to be insured.
So why would the insurance create this sort of illusion? The insurance company profits more selling directly to the insured. The insured does not pay over and above the policy premium price for an agent. An agent is paid by the insurance company in the form of a commission. The commission has already been figured into the premium amount, whether you elect to purchase from an agent or direct from the insurance company, you will pay the same premium.
Having an agent could be a huge advantage. An agent’s job is to provide you guidance and help with your insurance needs. Health insurance is very important and complex. All plans are not created equally. Policies are typically written in legal terms that most people are not accustomed to reading. Let a health insurance agent help you better understand exactly what you are buying to protect you from financial burden.
Basic services such as claims and policy changes will likely be handled much quicker through an agent. Rather than waiting on hold for hours to have a claim mistake corrected, ask your agent to help you with the situation. Chances are, the agent will get it done with less time and work invested on your part.
You are putting money back into the community by obtaining an agent, rather than going direct. The commission will be paid to someone, either to the insurance company or the community agent, you make the decision.
Which ever option you choose to purchase your health insurance, the price for an exact policy should be the same.
Michael Zitzke is associated with iwebquotes.com, a site dedicated to provider consumers affordable health insurance. Michael Zitzke is a licensed health and life insurance agent located in Appleton, Wisconsin.
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