So you’re looking for health insurance coverage. In the past, this is something that many would readily receive through their jobs, but for a number of reasons many people are currently looking for health insurance on their own. You may be looking for health insurance because you lost your job, as millions have due to the COVID-19 pandemic. Perhaps you were previously on your parents’ health insurance policy but have aged out of it and now have to look for insurance on your own. Other people work in industries wherein health insurance simply isn’t a given, as is the case for many freelancers. The fact is that there are a lot of different issues that would lead to people seeking health insurance on their own for the first time this year, and the question that many of them may be asking is whether they should work with a health insurance agent or not. For that matter, should they be working with a health insurance broker? It can be difficult to navigate what exactly you need to do as you move forward with your search for good health insurance. With that in mind, let’s look into some of the things that you should do as you attempt to figure out health insurance.
Is There A Difference Between A Health Insurance Agent And A Health Insurance Broker?
So, the big question that many have is whether or not there is a difference between a health insurance agent and a health insurance broker. You’ve probably seen the two terms floating around as you look into health insurance, and though they may seem to be the same thing at first glance, the reality is that they are not. When you are a health insurance agent, you are representing at least one health insurance company, if not several different companies. This means that a licensed health insurance agent may make commission off of their sales, or they may be working off of a fixed salary. Perhaps most importantly, they cannot charge you any fees while looking for the right plan for you. When an agent is appointed to represent an insurance company, there is an agreement made between the two of them. They cannot simply begin to sell insurance outright.
A health insurance broker has a different role. They do not have an agreement with the insurance company that you may be looking at, and they essentially act as an intermediary or a middleman. They do receive commission, as that’s essentially built into the sales that they may make. While a health insurance agent can sell you insurance, an intermediary would also be there if you have questions about the insurance. They may also be able to help you renew your plan and do other things related to your insurance coverage as well. But in exchange for all of that advice that you may go looking for, they will charge fees. In addition to buying your policy, you will also be paying for your health insurance broker. This is something that has a lot of people choosing to work with health insurance agents, as well as life insurance agents, rather than brokers in either field. It’s simply cheaper, and you’re paying solely for the insurance policy, rather than the insurance and the broker’s work on top of it.
Why Work With A Health Insurance Agent?
The reasons why you may want to work with a health insurance agent to look for different policies are often personal and individualized to you. While you could buy from the ACA Marketplace, there are a lot of advantages to working with an agent who can offer you different policies. If you aren’t able to access the Marketplace at the time that you’re looking for health insurance, or if you’re unable to access Medicare, the federal health insurance for people 65 and older, it can be difficult to find the policy that’s right for you.
The expertise and convenience provided by an agent are why many people choose to work with them. There is peace of mind in knowing that you’re getting the right plan.
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