It’s a Pretty Simple Process ... Really

Insurance is nothing more than a contract between two parties. For the purpose of this conversation, the insured (you) and the insurance company. You make an initial offer and the insurance company either accepts your offer, makes a counteroffer or declines your offer. This can go back and forth several times.

Here is a simple version of how it works.

You contact the company and tell them you want to buy insurance. You provide basic information, i.e., age, gender, etc. The company then provides you with different options, i.e. plan designs and standard rates. You choose an option (make an offer) and the company reviews your information. Many times, a counteroffer is made, i.e., a rate increase. You can accept the counteroffer, make a counteroffer back or decline the offer. Like I said, this can go back and forth several times. All of this is usually done through an agent/broker. 

There is room for negotiation in certain circumstances. That is where your agent/broker will prove their worth. 

As an independent agent, I can negotiate with different insurance companies.  Sometimes I will get different companies to compete for your business. The standard rates are non-negotiable but sometimes coverage can be.  

Unfortunately, if the changes to the health care system do occur, agent/brokers will lose their ability to be your representative and will be relegated to interpreter status. In simple terms, they will only be able to explain to you what your choices are. 

Imagine going to court with someone that can explain the law to you but cannot speak for you. Basically, you would be your own attorney. How do you think that will play out?

As I said earlier, the above information is a simplified version of the actual process. Speak to an agent/broker if you would like more detail.  

Editor's note: The author is the owner of A.L. Saland Insurance Solutions.