Insurance Broker Blog

Broker Tips: How to Make Insurance Simple for Your Groups

If you are an insurance agent, then you have probably gone over every aspect of the insurance policy a thousand times. You might even find yourself using industry terms more often than you use plain English, forgetting that this terminology is not necessarily "common talk" for everyone.

When your client leaves your office, he or she will leave with a certain perception about their insurance product. Whether or not that perception is correct is entirely up to you. It is dangerous to assume that your clients fully understand you when you speak to them using industry terms. Because a misunderstanding on the part of your client can lead to a substantial amount of out-of-pocket expense, it is imperative that you are clear in explaining not only what is covered, but how it is covered, and when it is covered.

There are many terms that insurance agents and brokers use on a daily basis, and often clients are not familiar with these terms. Some of the terms you want to clearly define for your clients include:

  • Deductible
  • Out-of-pocket maximum
  • Annual maximum
  • Lifetime maximum
  • Waiting period
  • Policy period
  • Covered service
  • Co-insurance
  • Co-payment
  • Network
  • Provider
  • Exclusion

Often times it is hard for clients to admit that they do not understand you, so they may be shy about asking questions. Imagine, if your client has just approached you about dental insurance; You have them come to the agency to fill out the application together. Your client nods approvingly as you read over the conditions of the plan and agrees to take the policy. They smile, shake your hand, thank you for your help, and leave your office seemingly pleased. What could go wrong? They nodded, smiled, and left happy, right?

The problem is that your client really knows nothing about insurance at all. They’ve never had a dental plan before and rarely uses their health insurance. They don’t understand what a deductible is, how co-insurance works, and aren’t really aware that their policy has an annual maximum. You can see how this will be a problem for not only them, but for you as the agent as well. Leaving these questions unanswered will give your client capacity to feel misguided or let down by you – leading to distrust.

It is for this reason that it is so important to simplify insurance for clients and assume everyone knows nothing. These broker tips will help you maintain long-term client relationships, and allow your customers to feel that they can trust you. Even if it seems as though your clients understand, it is very possible that they don't. Insurance can be confusing and even intimidating for some people, and so it is important to make sure they fully understand their coverage. Knowing how to make insurance simple for your groups will not only help put your clients in the best possible position, but will also help to build trust and enhance relationships with your agency for years to come.


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