Buying individual health insurance: Why do some say a small independent broker is best?

Question

OK. I understand not to use a broker that is connected with a single insurance product, but what's up with a broker that works for a consulting firm? Is a national consulting firm bad?

Will I pay more depending on which broker I use? Also how long can I expect to wait for the underwriting to be done? (Fortunately, I am currently covered, I just think I'm getting hosed on the price.)

Thanks to all. I know there are knowledgeable insurance brokers out there in Yahoo land, as well as customers, satisfied and otherwise.

Answer 1

First....how do you make these spammers go away...

To answer your question:  Insurance is regulated, so if you called the company directly, used an agent of the company, used broker A, or broker B you would pay EXACTLY the same price.  Nobody can change the price.  So, from a price standpoint it makes no difference.  You wouldn't want to use a large company that uses what's called a "call center" model because then you're dealing with a 'customer service rep' who may have limited experience and/or limited in scope.

Brokers that are set up on the model I run on are the best place to do business because the knowledge and product availability is much more vast.  Because you don't ONLY want someone who can help you out now, you want someone that'll be there three years from now when the company gets a new product....or another competitor has a new product...or any number of issues that can arise.  You want a trusted, familiar voice on the other end of the phone.  And, when you're dealing with a smaller broker you're dealing with the owner of the company that has more of a vested interest in helping you rather than selling you -- because he/she knows that helping you pays far more dividends than just selling you.

Hope that helps.

Jeff

Answer 2

The biggest advantage of a local broker is that (s)he is familiar with state laws , which can vary significantly.  An agent answering the phone for a nation wide broker can't be as knowledgable  about state mandates, or local networks, as your local agent, no matter how good his cheat sheets are.

Your local agent probable cares more as well. He NEEDS referrals, and to keep you on the books as long as possible. The nationwide agent may just be trying to meet his quota for the month.

Hoping for referrals,

Don

http://mtnhealthinsurance.com

Answer 3

You won't pay more for using a broker.

The reason why they say independent, is because they have access to products from a variety of companies.  I don't think it matters much between small and large broker, though.  If the broker is too small, they still might only have contracts with two or three companies - which is almost as limiting as going to a captive agent.

Underwriting takes about 2-3 weeks, if you're perfectly healthy.  If there are questions, or you have pre-existing conditions, it can take months.

Regarding getting hosed, the average low dedutible plan, for a healthy 30 year old, is going to cost about $300 a month - excluding maternity -  varies slightly geographically.  If you're older or less healthy, it costs more, or flat out they won't take you.

Answer 4

Cost is the same. Difference is in the service. At my office, we handle all service issues for our clients, so they don't have to deal with the hassle of calling the cust svc dept and listening to tems they aren't familiar with. Rates can vary from company to company and product to product. If you want to price compare, definitely look at other products. It might be that you were on a plan that you bought years ago and have incurred rate increase on top of rate increase over the years. That is also where a broker comes in handy. I evaluate all my client's rate increases, and make sure they have the best deal they can. I service Brazoria and Harris county, if I can help you  at all drop me an email. No obligation, and it doesn't hurt to just check up and be informed.

www.rimatoinsurance.com

Answer 5

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