According to the most recent data, there were 2.8 million people employed by the U.S. insurance industry in 2021. Of these folks, over 900,000 work for health and life insurance companies. Many others work as independent agents for local health insurance agencies.
With so many health insurance agents working out there, you won’t have a problem finding one to help you. However, it might be best to consider choosing one who lives and operates in your area.
But why exactly should you work with a local health insurance agent? Why not buy a plan directly from larger national companies?
Below, we discuss the top pros and perks of choosing a local agent for your health plan needs, so read on.
Table of Contents
1. You Get a Dedicated Agent
If you buy a plan directly from a larger national company, you’ll likely speak with many people. These include various agents and anonymous customer service representatives. You may also be on hold or bounced around whenever you call the company.
On the other hand, if you work with a local health insurance agent, you’ll only work with that professional.
For example, if you view this insurance agency site, you’ll see they have dedicated agents. These licensed professionals are also available all week. Take advantage of this by calling the agency a few times until you talk to someone who best fits your needs.
Then, let’s say you’ve decided to enlist a dedicated health insurance agent named John. From then on, John will be your sole advocate and advisor, no one else.
2. Faster and Smoother Communication
As your dedicated health insurance agent, John will be your primary point of contact. For starters, expect him to provide you with his direct business phone number.
You can call John whenever you have questions about your plan or need help making a claim.
3. Ease of Verifying Licensure
All U.S. states require health insurance agents to carry a license to sell plans. Most also mandate separate licensure for each policy an agent wishes to sell. So an agent selling health or medical insurance and life insurance must have a license for both.
However, just because a person claims they’re a licensed entity doesn’t mean they are. They may be a scammer posing as an agent selling cheap, fraudulent plans for a legit insurance agency.
Unfortunately, many people fall victim to these dishonest schemes. That’s one of the reasons insurance fraud costs the U.S. an estimated $308.6 billion yearly.
Working with a local agent can lower your risk of becoming a victim. You can easily verify their license validity with your state insurance commissioner. You can call the commissioner or use their online lookup tool to validate an agent’s license.
4. Ease of Validating Other Credentials
Aside from their license, agents must also carry several types of insurance themselves. These include errors and omissions, general liability, and cyber liability, to name some.
As a savvy consumer, you should also verify the validity of those insurance coverages. Because if they’re invalid and something happens, you may not be able to get compensation.
Validating a local agent’s coverage is easier since they likely have local insurers. You can then call the insurance provider’s local number. They will verify the agent’s identity and policies for you.
5. Insider Knowledge of Local Health Concerns and Risks
Since local agents live in your area, they’re privy to location-specific health concerns.
A perfect example is asthma, affecting an estimated 25 million Americans. Where a person lives greatly influences this disease’s development and progression.
Medical and health insurance plans cover many asthma and allergy tests. However, insurance companies often place limits on how much they cover. If you have asthma and buy a plan with too little coverage, you may pay more in the long run.
A local agent can help by recommending insurance options tailored to your health. For example, they can look for health plans with specific or extra asthma coverage. They can also search for policies that cover more costs for lung-related illnesses.
6. Time and Cost Savings
Many local health insurance agents sell products from multiple licensed insurance providers. These plans are from different providers and vary in coverage and prices. For instance, policy A may be cheaper than B because it covers fewer illnesses.
That doesn’t mean you should get policy A, though, because your health needs should be your top concern. Instead, policy B may be better, especially if you’re at risk of certain health conditions.
Because of those differences, it pays to shop around and compare as many plans as possible. That takes a lot of time, though, which can cause you to be less diligent in your research.
Avoid that trap by working with a local health insurance agent who’ll do most of the legwork for you. The most you have to do is to tell your agent your health condition, the coverage options you want, and your budget. Your agent will then look for plans that meet your criteria and suits your needs.
A local health insurance agent can also help you avoid under or over-buying coverage. For instance, they will tell you what the different policies cover, what they don’t and if they have extras. That makes choosing the most suitable plan easier, helping you save time and money.
7. Special Discounts
Local health insurance agents often carry licenses for other insurance products. So aside from health plans, they can also sell auto, home or renter’s, life, and commercial insurance. That makes them a one-stop shop for all your coverage needs.
Even better, most agents can provide discounts if you buy multiple policies. These special deals range from 5% to 20% off your premiums.
Time to Look for a Local Health Insurance Agent
As you can see, working with a local health insurance agent means having a dedicated advocate. Don’t forget about the cost and time savings, plus the potential to get discounts.
All that should be good enough reasons to go with a local agent if you need help buying a health plan.
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