A credit insurance broker helps people find and select the best credit insurance policies from multiple insurance companies. They are experts in credit insurance and can advise on the most advantageous protection. Brokers are usually paid by the insurance companies they are contracted with and do not charge upfront fees.
A credit insurance broker is a person who helps people get quotes for credit insurance and select the most appropriate policies. Unlike insurance agents, credit insurance brokers do not sell the insurance products offered by a single company. Instead, they often maintain connections with many different insurance companies. In this way, they can offer their clients access to a variety of credit insurance companies and more options than are normally available through an insurance agent.
A credit insurance broker sells credit insurance. The phrase credit insurance typically refers to a type of coverage that benefits a creditor rather than the person purchasing it. Credit insurance pays benefits to a creditor in the event that the covered party defaults on a loan or fails to pay its bills for a specified period of time. For example, credit insurance can pay a creditor in full in the event that a borrower loses his job or becomes disabled and cannot pay. Credit insurance may also make payments to a credit cardholder should he suffer a loss of income or illness that interferes with his ability to make timely payments.
Rather than working as an agent for an insurance company and selling their insurance plans, a credit insurance broker usually contracts with multiple insurance companies that sell credit insurance. When a person wants to buy credit insurance, a credit insurance broker works to match him with the best option. This usually means matching him with an insurance company that includes the terms he needs and the amount of coverage he wants within his price range.
A credit insurance broker is considered an expert in credit insurance. For this reason, a credit insurance broker can usually carefully consider an insurance buyer’s unique situation, needs, assets and risks and advise him on the policies that can offer him the most complete and advantageous protection. While a person may contact a credit insurance company or an insurance agent, he or she may find that some agents have far less experience. Also, an insurance company representative usually does not inform the buyer of the potential for finding better or cheaper coverage.
In most cases, a party interested in purchasing credit insurance can engage the services of a broker without paying any upfront fees. Brokers generally receive fees from the insurance companies with which they are contracted, and in some cases, a broker’s fees are incorporated into the policyholder’s premiums. Often, however, policyholders receive the same amount of premiums regardless of whether or not they use a broker.
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