I cannot imagine my life without my broker! I regard my broker just as important as other necessities such as my cell phone and my car! Having a broker is so convenient that I can’t grasp why some people are still hesitant to make use of a broker’s services.

A broker acts as middleman between the consumer (you) and the company (the people wanting to charge you a lot of money). Their main purpose is to look after the interests of their clients and offer them advice in choosing the best product for their specific needs and requirements.

Brokers specialize in different areas of insurance and other important products. Some brokers will focus only on short time insurance; where other brokers will cover the whole spectrum from medical aids straight through to life insurance and retirement annuities. The most important thing when choosing a broker is making sure that he/she specializes in the field that you would require assistance in.

By using medical aid as an example it is easy to see that the main benefit of dealing with a broker will be their extensive knowledge of the product in question. They are also familiar with the requirements and regulations of various companies. Why spend hours on the phone with 10 different companies, trying to make sense of their range of products, if your broker will be able to supply you with all the information? Brokers will be able to suggest the best medical aid and medical aid option, based on your needs and requirements.

The main misconception a lot of people have about brokers is that you will be paying extra for this service. This is however not the case. Brokers receive kickbacks or commissions from the insurance (or medical aid) companies. This will not affect your wallet negatively at all! In fact, you can often get lower rates if making use of a broker as they are familiar with the best products in the market at all times.

Because brokers receive kickbacks from insurance companies and other service providers, it is important to make sure that your broker doesn’t put pressure on you to support a specific company or to buy a specific product. A good broker will always give the client a wide variety of options to choose from and if this is not the case with your broker, it’s maybe time you appointed someone else. The final decision should always lie with the client and the broker should only act as an advisor. Never settle for a product that you are not completely happy with!

Brokers also handle most of the paperwork on the client’s behalf. The client must still complete the necessary application forms and agreements, but the broker will submit this to the various service providers and make sure that the whole process runs smoothly.

If you ever have a problem or a query with a certain provider, your broker will also act on your behalf, which means you won’t have to spend hours on the phone trying to figure out what’s going on with your latest medical aid statement. Sit back and let your broker handle it – that’s what they’re there for!

For more information on brokers, go to http://www.insurance.co.za