Insurance brokers can offer a wide variety of services to customers. Some brokers specialize in certain areas of Insurance, investments, Pensions and other financial products. The main benefit of using the services of a broker over say a bank is that with a broker there are a number of different services offered to the client. In most cases banks are tied to an insurance agency so the client can only get 1 quote with them. In a brokerage, you will find a number of different providers with multiple different quotes and rates. This gives the broker some leverage over the insurance agencies in order to get the client the best deal available to them.
For a potential client, the most time efficient way to price the market for a policy is to use a broker. The broker will offer the most suitable product available at the best price and in many circumstances improve on the policy already in place through a bank.
There are a variety of insurance products on the market to suit every need. Life assurance on the mortgage loan is normally required by the lender in order to make sure that in the case of death during the policy the lender will be covered and the estate will be left debt free. The insurance can be taken out through a group scheme with the bank or the mortgage holder can take out insurance through a broker and assign it to the bank.
Some customers take out personal life assurance which will pay out a lump sum on the death of the insured. It comes in many options, Single, Joint and Dual. Some of these will pay out on 1st life, some on 2nd life and some will pay out on both lives and then to the estate of the 2nd life assured.
Lenders will also insist that a mortgage holder will take some form of home insurance in order to insure against the possibility of damage to the house. The insurance must cover the cost of a rebuild. If the house is under insured then the policy would only pay out a percentage of the rebuild value.
Other insurance policies which are not mandatory are Income protection, designed to pay the mortgage repayments in the event of a period of unemployment. This type of policy should be considered by those who would otherwise struggle to keep up with their repayments such as self-employed workers. Tax relief at the marginal rate is available to self-employed on such policies.
Another type is Critical illness cover which would pay out a lump sum in the event of the insured client becoming ill and not being able to work. There is a comprehensive list of illnesses covered and would provide some peace of mind during a difficult time.
Outside of Insurance products a broker can provide advice on Savings, Investments, Mortgages and Pension products. For young couples planning on purchasing a property, savings is the most important aspect. A broker can advise on how and where to grow your savings until you are ready to purchase the property.
Once the property is purchased, protection becomes the most important aspect. The couple will normally be financially stretched and it is important that a protection policy is in place to cover certain financial issues that may arise.
In a lot of cases pension planning becomes an urgency for clients in their 30s and even 40s. Again a broker can advise on these products and guide the client through the process of starting a pension fund. In terms of pensions, the sooner you start the better, as it does take a long time to build up a good pot for your retirement. As you get older the broker will advise on retirement planning and investments so that when earned income stops there is sufficient funds to continue to enjoy your accustomed lifestyle.
