Insurance agents represent one or more insurance companies and earn a commission when they sell a policy on behalf of the insurer they represent. Agents can also help customers evaluate their insurance needs and provide assistance if they need to file a claim. The claims process can involve a lot of paperwork and, on its own, can be overwhelming without any guidance. Agents help by explaining the claim process, answering any questions, and helping the policyholder complete the paperwork.
Agents give policyholders a more accurate idea of what they can expect in the future of the claims process. They provide information about how long the process will take and the obstacles that may arise in the future. An agent can help you understand your options, from what type of life insurance policy is best for you to who you should name as the beneficiary. The agent's job is to sell you a policy, but it must also work in your best interest. An agent can work for a single insurance company or, if you're an independent agent, help you get quotes from several different providers.
Independent agents have no prejudice or preference for any company over another and are truly on your side when it comes to insurance. A key difference is that insurance agents represent the insurance company, while brokers represent the customer. While there are deadlines and commitments to customers to meet, many insurance agents are free to set their own schedules and reconcile work and personal life. Below, CNBC Select shares what you need to know about insurance agents and the role they play in buying insurance.
If after your self-evaluation you have identified that these skills are in your specialty, becoming an insurance agent may be in your best interest. Previously, she wrote about life and disability insurance for 1752 Financial and advised more than 1500 clients on their life insurance policies as a sales associate. For example, many insurance agents want customers to know that they can't get retroactive coverage because of something that has already happened. As a local insurance agent deeply rooted in my community here in Mesa, AZ and the Phoenix metropolitan area, I have seen firsthand the advantages of working with someone who knows insurance well.
At the center of this industry are insurance agents, who act as essential intermediaries between customers and insurance companies. This is more common in auto insurance and term life insurance than in more complex plans, such as home insurance or whole life insurance. Each state has specific requirements and risks for car insurance that you need to consider, and your local agent can help you resolve them to make sure you're protected. There are many things to consider when buying insurance, and an insurance agent is often the person who helps you find the coverage you need. The insurance company pays commissions to insurance brokers and they may charge them commissions, although many don't.
By evaluating customer needs and recommending appropriate insurance coverage, agents play a critical role in protecting homes, vehicles, businesses and lives.
