What is disability insurance

Buying health insurance means making important choices that affect you and your family. Just as you would never have surgery without your physician's advice or build a house without the expertise of a contractor, you would not want to purchase a health insurance policy without the guidance of a skilled and experienced insurance broker.

 

The insurance marketplace has changed dramatically over the years. While people with chronic and acute illnesses are enjoying longer lives, healthcare prices have skyrocketed. Finding health insurance that provides all the services you need at an affordable price is not easy. That's why it makes good sense to work with a licensed broker, a professional who is trained to sell you individual health insurance coverage. Of course, brokers don't just sell insurance; they use their expertise help you understand and choose the coverage that's best for your health and your wallet.

 

Your broker can be your advocate in negotiations with insurance companies, doctors, hospitals, or government agencies. If you own a business, a broker can help you explain employee benefits to your staff. Finally, a broker can occasionally review your plan to make sure your coverage is up to date and you are not paying unnecessarily high premiums.

 

State insurance departments license and regulate insurance brokers and agents. In order to be licensed, brokers must undergo training in insurance and its relevant laws. In most states, brokers must participate in continuing education to stay licensed. Many brokers complete a series of college level courses to earn assorted credentials, such as, Registered Health Underwriter (RHU), Health Insurance Associate (HIA), Registered Employee Benefits Consultant (REBC), Certified Employee Benefits Specialist (CEBS), or Chartered Life Underwriter (CLU).

 

Today you can find many brokers online. We also suggest you ask someone you trust for referrals. Any reputable broker will be licensed to sell health insurance in your state and belong to a professional association with a strict code of business ethics. Insurance Websites can help you verify a broker's experience and credibility.

 

It is key that you give your broker the most current and accurate picture of your personal finances, so he or she can conduct a financial needs analysis and use it to identify the insurance options that will work for you. It is also essential that you honestly answer questions about your age, medical condition, medical and family health history, since insurance companies use this information to assess your risk and establish a premium for your coverage.

 

You may pay a lower premium if you don't smoke, for instance, while you may pay a higher premium if you are chronically ill. And note that incomplete or misleading information may cause your claim to be delayed or denied.

 

Your broker should carefully explain the suggestions he or she makes, based on your financial situation. Take all the time you need to make a decision, and ask for additional explanations when necessary. If you are not satisfied with your broker, find another one.

 

And bear in mind that most brokers work as independent agents for several companies and are paid by commission. Therefore, instead of earning salaries, they generally receive a percentage of the premiums you pay your insurance company. Not only does this free you of any direct service fees, but also it gives the broker a good reason to find you a health plan that will make you happy.

 

SOURCES: National Association of Health Underwriters, Arlington, Va., http://www.nahu.org/consumer/questions.htm, and, http://www.nahu.org/consumer/IndividualInsurance.htm; "Health Insurance: Work With an Agent," Life and Health Insurance Foundation For Education, Washington, D.C., http://www.life-line.org/hi_wheredo_work.html.