What To Look For In An Agent

The world of insurance is both complicated and competitive.  Here are a few of the key differences that set companies and agents apart:

• Not all health insurance plans are equal!

• Most companies are now offering two or even three levels of major medical coverage.  In most cases, these include a traditional major medical plan, a mid-level plan with reduced benefits and even a "catastrophic" plan that pays little or nothing on many outpatient expenses.

• There are also some plans being sold today that have no coinsurance limit.  In other words, they don't have a "stop loss" provision.  The coinsurance remains at 70% or 80% with no limit, meaning the policy has no out-of-pocket limit and never pays at 100%.

• Even more disturbing, some companies are offering "hospital/surgical" policies with such limited benefits that they can "max out" on claims as low as $50,000.

•  Not all agents are equal!

• Unfortunately, too many agents today are only interested in selling the plan with the cheapest premium or the plan that pays them the highest commission, regardless of the benefits.

• Make sure your agent explains the different levels of coverage available and works with you in choosing the plan that offers the benefits you need at a competitive price.

• Avoid an agent that wants to rush you or who pressures you to pay a larger modal premium.  (i.e. agents who say you need to make an immediate decision because of a supposed rate increase or the end of an enrollment period, as well as those who try to get you to make an annual payment when you prefer to pay monthly or quarterly.)

• Visit the website of your state insurance department and search for information on the agent.  Most state sites will list how long the agent has been licensed and if they have ever had any complaints.
  (Example: Missouri Department of Insurance)

• Do all you can to make sure you find an agent who not only wants to sell you a policy today, but one who will be there for you in the future.