There is a TikTok sensation called Dad Advice. His over 400k followers ask questions about everyday life issues. They call him simply, Dad. The questions range from How do I drill a hole in concrete? to What is a Roth IRA? He answers these questions in an easy-to-understand way that has endeared him to anyone with a dad question. Someone could have asked, “What is the difference between an insurance company, a broker, and an agent, and why does it matter? Perhaps he would answer something like this…
Finding a trusted insurance partner matters.
Your grandparents probably had one banker and one car dealer and were friends with their mailman. They probably worked with these professionals their entire lives, referring to these trusted partners as my car guy, my bank guy, or my insurance guy. Things are different today. Finding professional partners to help with important things like health insurance is often a hit-or-miss attempt for consumers forced to shop on the internet for products and prices they don’t understand – hoping for the best. A trusted insurance partner can save you time and money to make sure you and your family are protected. Best advice sometimes is dad advice about health insurance partners.
What are the differences between insurance companies, agents, and brokers?
Simply put, insurance companies sell a product, agents represent insurance companies, and brokers represent consumers.
Insurance Company
There are many types of insurance companies. They may offer car insurance products, homeowner’s insurance, and financial or personal property protection. Some insurance products are easier to understand than others. Health insurance can be quite complicated. A health insurance company exists to help consumers manage risk by selling a health insurance plan to an individual or group to pay for healthcare costs when they arise. By spreading the cost of the plan, also called the premium, over many people, an insurance company manages risk to make a profit. This way of paying for medical expenses can help make healthcare more affordable and provide the coverage you need while helping insurance companies grow financially. There are over 5,900 Insurance companies in all fifty states representing premiums of over one trillion dollars.
That is a lot of insurance- but which company and plan are best? This is where it can get complicated. If you are employed, your employer may offer a group plan; if you are self-employed, you have other options. If you are in a low-income situation or over age 65, there are other insurance companies to best help you.
Mike Dietz, the owner of MIB, says, “Health Insurance companies are basically the same; our job is to assess our client’s needs and match the best insurance company and the best plan for their unique situation. If a client has a unique need, we will find the right company and plan for them. That is what our perfect plan matching is all about.”
Individual consumers can work with an insurance company directly. The risk is that you are only seeing one product and will not know if it is best for your situation. MIB is a trusted insurance partner who can help make sense of all the insurance company offerings on the market today.
Insurance Agents
There are over 410,000 insurance brokers and agents in the United States. How do you go about picking one?
Health insurance agents sell insurance plans from the insurance companies they represent. An insurance agent may represent one or many companies. An agent will work with you to find health insurance coverage, assist you in enrollment, and consult with you occasionally to analyze coverage and costs. An agent represents the insurance company. This is different than a broker who represents the client. Agents receive monetary compensation for selling insurance products. They can receive incentives and sell clients insurance products that may not be ideal for their client’s situations. If an insurance agent only represents one insurance company, it is best to find an independent agent who represents multiple companies or, better yet, a brokerage firm that represents you, the consumer.
Insurance Brokers
Health Insurance Brokers represent their clients and search for policies from different insurance companies that best meet the unique needs of their clients. Insurance brokerage firms also receive payment from insurance companies and hire licensed insurance agents, but they differ in that they represent many insurance companies and have extensive knowledge about many insurance plans available.
An insurance brokerage offers you the power to compare.
A good health insurance brokerage firm has its client’s best interests in mind. With the thousands of plans available, each with their own premiums, deductibles, and payouts, not every insurance plan is right for every group or individual. A brokerage firm can stay on top of the health of insurance companies, analyze unique coverage needs, and find affordable plans and discounts to make health insurance easy and affordable.
MIB has 35 years of experience researching and managing the best health insurance companies. Their clients trust them to wade through the complexities of health insurance companies to find the best fit. They currently handle 20 National insurance companies and 15 local companies in the Fox Cities Area. So, if you need some dad advice about trusted health insurance partners to help you save time and money, let’s connect.
MIB Health Insurance is a family-owned health insurance brokerage with a team of caring health insurance professionals in the Fox Cities who want to understand your unique health insurance story. Together you can find the right health insurance solutions for you and your family. Your Health Insurance partners at MIB are committed to providing peace of mind to help you understand your health insurance, saving you time and money. Call a MIB Health Insurance partner at 920-731-2100 to see what the health insurance peace of mind may look like for you.