Life insurance, also called death insurance contract, guarantees the payment of capital when the insured dies. However, this insurance product is also a good way to grow money. Among all the life insurance contracts, it is difficult to navigate. The life insurance broker helps you see things more clearly and defend your interests. We tell you everything about the role and missions of this insurance professional.
What does a life insurance broker do?
A life insurance broker represents a intermediary between customers looking for a product and companies. It is mandated by the insured. Generally, the insurance broker is autonomous. It only establishes partnerships with several insurance companies in order to have access to all the offers on the market.
He is a professional who knows his industry perfectly. For his client, he must select the most interesting formulas by carrying out comparative studies. The insurance broker must also know how to advise the insured and guide him towards the best offers. The professional can also accompany his client in all his steps in order to simplify the conclusion of the contract.
Benefits of using a life insurance broker
As a simple insured, it is difficult to tell the difference between several formulas offered by insurance companies. The offers differ according to the insurers. When subscribing to a contract, it is important to read all the small lines. Some details are important. A contract can generate considerable costs, for example. Management fees very often increase the bill.
To take out the contract that best suits your situation, it is important to know the market. By using a brokerage firm, you do not take any risk. And in case of complications, the broker remains at your side by defending your interests.
You should also know that insurance companies offer brokers specific so-called “multi-management” contracts. The insured has a much wider choice of investment.
How to choose a good broker?
Before using any life insurance broker, analyze certain criteria. Find out about the companies the broker works with. That will say a lot about his credibility.
All brokerage professionals must be registered in the ORIAS register. If the broker is not listed, its services are not in compliance with the regulations in force.
A reliable life insurance broker will be able to give you his professional identity, full contact details and registration number. Do not hesitate to ask him for client references. It is very important to create a bond of trust with your life insurance broker. Don’t forget that he is in charge of defending your interests.
online life insurance brokers
These professionals work in the same way as traditional brokers. They advise you and direct you to the best contract by negotiating very low fees. Online brokers generally offer a wider range of services than their physical competitors.
Altaprofits and Linxea are among the leaders in online brokerage.
Compensation of an insurance broker
As a self-employed person, the insurance broker does not receive a fixed salary. A professional at the head of his brokerage business can earn up to 70,000 euros gross per year.
Brokerage firms are most often small structures. Bonuses play a big role in the amount of salary. A novice broker can expect to receive between 28,000 and 35,000 euros gross per year. In accordance with the Markets in Financial Instruments Directive, brokers charge commissions on life insurance products. However, professionals are obliged to prove that the product sold to the client is beneficial to him. Brokers, like distributors of insurance products, must be transparent. The insured knows precisely what he is paying.