Insurance Agent – What Does An Insurance Agent Do

An Insurance agent could be an independent person or employee who works for an insurance company to sell you the right insurance products. They are your legal insurance representative who is your salesperson in acquiring claims. Also, they are responsible for acquiring the right coverage that suits you best as the client.

Insurance Agent

They are the primary spokesperson in evaluating the needs of the person or the business and developing strategies for the right policies for them. After careful and professional consideration, they leverage their skills to provide the right insurance plans to suit your needs and lifestyle.

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What Does An Insurance Agent Do? 

Termed as reliable professionals, they have a major role in determining the best insurance plans for you. As a salesperson, they will sell you insurance policies that are all based on the customers’ requirements. Some insurance policies they might offer include auto, short-term, life, and long-term insurance, and so much more.

Duties of an Insurance Agent

Here are the major duties that an insurance agent offers to their clients:

  • Promote the Company’s health insurance policies
  • Servicing policies to clients
  • Giving advice on the best insurance coverage
  • Explaining the policy terms to the clients
  • Maintaining all records of the clients
  • Fulfilling the requirements of the policy
  • Monitoring the insurance claims
  • Inspecting the assets
  • Identifying sales opportunities for insurance plans
  • Calculating dividends and creating payment methods
  • Establishing a solid relationship with old and prospective clients
  • Describing the advantages and disadvantages of different policies to promote sales of insurance plans
  • Responding to the questions and issues raised by clients

These are many professional duties of an insurance agent to their prospective clients and in the business.

How Much Does an Insurance Agent Make? 

Insurance agents usually earn a mean annual salary of about $79, 650 and an hourly rate of $40. Still, the exact amount they make depends on their level and years of experience, their skill sets, the employer, and the job location. Furthermore, the specialty of insurance is a factor that also affects how much an insurance agent earns.

The Contrast Between an Insurance Agent and an Insurance Broker

An insurance agent and insurance broker may perform the same function of acting as an intermediary between the buyer and the insurance company. While this is so, there are major differences between the two professionals that are often mistaken to be. These differences are stated as such:

  • An insurance agent represents the company, while the broker represents the client
  • The insurance agent can quickly get you in binding coverage, but the broker cannot.
  • The agent sells your policies from the insurance company they represent, while the broker is not limited to a particular company.

Despite their differences, these professionals all work with the same aim to help you get the best policy that suits your lifestyle. You can get more insight into a company and what they offer with an insurance agent instead of the broker.

Pros of an Insurance Agent

Here are the pros of using an Insurance agent to purchase a policy:

  • It saves you time and effort
  • They help you through the claim process
  • They offer you customized advice
  • They work on your behalf with the insurance company they represent
  • They could extend bundle insurance policies that save costs
  • Also, they will offer support on complex topics concerning coverage options, insurance terms, etc.

Cons of an Insurance Agent

Here are the cons that come with using an insurance agent:

  • They will not be moved to offer you policies from other companies they have no business relationship with
  • Some agents will charge you a fee for their services, adding to the cost of the insurance coverage
  • You might become too dependent on their help, and you won’t understand basic things on your own
  • Few agents might take advantage of the recent technological advances, which slows down the convenience of managing your policies.
  • In the case of poor communication, you will not get the desired results you want from your agent.

These are some of the cons you might face when dealing with an insurance agent.

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What to Look for in an Insurance Agent

If you want to hire an insurance agent to help with their professional expertise, there are major factors that you should look out for.

For starters, you must find an insurance agent who has his/her license. Also, you have to ensure that this is a professional who has years of experience dealing with the type of insurance you want to get. Furthermore, they should also be able to help connect you to top-notch providers or sell the best policies to you.

Next, they need to have the best communication skills and excellent customer service. Before you proceed with their service, check their credentials and honest reviews from previous clients.

Frequently Asked Questions

Check out some frequently asked questions you might need in this section:

How Do Insurance Agents Make Money? 

Insurance agents make their money from the commissions they earn. These commissions depend on the type of insurance policies and the number of products they sell.

Do You Need an Insurance Agent? 

You don’t necessarily need to have an insurance agent before you can purchase a policy. However, making use of an agent comes with many advantages. Additionally, it depends on the insurance company. Some companies can sell insurance directly to you, while others only use an insurance agent.

Is It Cheaper to Buy Insurance Online or though an Agent? 

Most times, it is cheaper to buy Insurance online from the Insurer. However, if you want to ensure you are getting the best deals, then it is good to use an agent.

What is The Difference Between an Insurer and an Insurance Agent? 

The difference is that the insurer is the company that writes the policies and gives out the insurance claims. On the other hand, the insurance agent represents the company/insurer to potential buyers or clients.