Danger, not all health insurance Agents are created equal. Finding the right  policy, coverage, company and agent can be riddled with frustration.

In every industry their are may types of people.  The health insurance industry is the same.  If you have ever filled out an internet request for a health insurance quote then you have probably been flooded by several types of health insurance agents.  There are the "boiler room agents", the "one plan" agent, the "cheaper is better" agent, and the "consultive" agents.  It can be helpful to understand each of these types and how they effect your health insurance decision making process.

The "boiler room" agent - usually an agent in a call center responding to internet request for information.  He/She is judged by their employer on the number of call made and the number of sales made.  This becomes the driving force for  their advice to you.  If you do not have a good understanding of health insurance you may be pressured into a policy that may or may not be the best plan for your situation.

The "one plan" agent - is normally a captive agent that exclusively represents only one company. This in it self is not bad but it too can lead an agent to make recommendation based on their own selfish interest rather than you unique situation.  Many of the plans from captive agents are limited benefit plans or hospitalization plans rather than major medical.  In my experience this is seldom explained to the you the customer until you get your policy in the mail. By that time it becomes such a hassle to get your premium money back and cancel the policy that most never make the desired change.

The "cheaper is better" agent - can be an independent agent that represents several companies.  However, they become conditioned to selling rather than listening to your needs.  This agent ofter pitches the cheapest plan because it sells.  The approach is the problem not the product.  Most of us when we shop we are price aware.  If price is the only thing driving our decision then we will quickly fall prey to "cheaper is better" only to regret our decision at the time of a claim.

The last type is the "consultive" agent - I favor this type because it focuses on your need.  This agent usually asks many questions and spends more time listening to your answers.  The positive side is that you usually end up with a health insurance plan that fits your needs and your budget.  The negative side is that  the process might take longer and might require more involvement on your part.  This can be frustrating because most of us have been conditioned with fast food mentality.

 

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