Overview of the Insurance Industry
Insurance is a complex and intricate industry with many different agents involved. In this blog post, we'll cover the basics of the insurance industry in order to give you a broad understanding of what types of insurance opportunities are out there. We will also be talking about how much it costs to buy insurance in different states, but we promise not to tell you which companies provide these services! Other than that, feel free to use this article as a jumping off point as your exploration into the world of insurance.
This blog post was written by Brittany Barrows, Insurance Agent for Berkshire Hathaway Home Services, located in Tempe, AZ.
Insurance is a booming industry with billions of dollars in revenue every year. This makes it important for the average person to understand some basics about the insurance industry to be able to interact with this business on a more personal level and be able to make smarter shopping decisions.
As with anything else in life, insurance is made up of many different players. They are usually categorized into three key categories: Self-insuring companies, Brokers and Administrators and Agents. Below we will discuss how these three different groups are involved in the business of insurance and why they play such an important role.
Types Of Insurance
There are basically two types of policies your agent will be able to take care of for you. These are Health Insurance and Auto Insurance. To understand why health insurance is so important, we must first understand where it comes from. In the United States, the cost of healthcare has become quite expensive over time. For example, over the last 30 years the cost has grown by almost 10 percent a year on average.
The government is currently taking steps to control costs in the healthcare industry by enacting new laws and regulations as well as changes to Medicare and Medicaid. This direct result of these changes will help offset some of the costs that have been growing tremendously over time. For example, under Medicare Part D prescription plans, you can get a $55 co-pay for drugs that cost more than $250 per year without insurance or for being able to get coverage for prescription drugs from your current drug plan.
Another way to help combat cost growth in healthcare is through tax credits. The Patient and Affordable Care Act (ACA) allows people to receive a Federal tax credit of up to $2,250 to help pay for coverage.
How Much Does Health Insurance Cost?
This is a very important question to ask your agent, as it will help determine how much health insurance you will be able to afford over the long run. These types of plans are generally broken up into three different levels: bronze, silver and gold. Gold and silver plans can provide higher amounts of coverage than bronze policies. As you can see in the image above, the average monthly cost of a gold plan is around $900 per month while a bronze policy costs around $400 per month on average . To help find the right plan for you, your agent can help you by running through different scenarios. Health Insurance Options For Seniors
Health insurance options for seniors have been growing in recent years. Now, Medicare is no longer the only option available to seniors over 65 years old. This means that there are a variety of plans and options out there to help make sure no one has to skip out on their insurance because they simply could not afford it. Our agents at Berkshire Hathaway Home Services specialize in finding affordable health insurance options for our clients in Arizona. Similar to our auto insurance policy and our health insurance policy, auto insurance is another very important aspect of being a safe driver on the road today. Although there are many ways we can help keep ourselves safe on the road, one of the best ways is to have the right amount of auto insurance. Auto insurance policies are broken up into three main categories: liability, collision and comprehensive. Liability coverage is very important because it covers any medical bills you may incur after an accident as well as property damage that might occur in your accident. Collision covers any damages caused to your vehicle and comprehensive coverage covers any other damages not covered by your liability policy.
Auto Insurance Options For Seniors The options for auto insurance in Arizona are pretty great when it comes to finding a plan that fits your budget. Most companies offer plans for both new and used cars. We are able to help you find the right auto insurance option for you in Arizona that is affordable and that you will be happy with. Auto Insurance Options For Seniors
The cost of insuring your auto is another big factor to consider when shopping around for the right protection for your car. Your agent can help compare different auto insurance options at various different companies in Arizona to find the best one for you. This way, you are able to get the best coverage at a price that works for you and your budget. Auto insurance options for seniors are available and can be chosen very easily. Most drivers choose a policy with liability and collision coverage - especially when they are younger drivers. This is because the first few years of driving can be very expensive, especially in Arizona where we get some of the highest car insurance rates .
The best way to make sure you have enough coverage is to buy a comprehensive policy which protects you from any other damages that may occur to your vehicle during an accident.
What Is It Like To Work For A Broker?
A lot of people in Arizona believe that all brokers work similar ways when it comes to helping buyers. This is not true. Although we do all have the same goals in mind, each agent has their own unique way of working with clients.
Some brokers specialize in working with people with a certain age group, like seniors or children, and helping them to find the right plans for them. Another broker may work with individuals who are looking for a special plan that would benefit them more than just a traditional plan.
What Is It Like To Work For An Administrator?
Administrators help handle all the paperwork behind your insurance policies after they are purchased. This could mean helping clients sign up for new policies, keeping track of the different plans you are currently signed up for, and making sure that everything runs smoothly.
What Is It Like To Work For An Underwriter?
The role of an underwriter is to determine how much risk your insurance company is willing to take on by guaranteeing certain coverage amounts. This is a very complex job that requires patience, hard work and great communication skills. Underwriters are in charge of determining how much risk the company should have when selling insurance policies.
Conclusion:
If you are looking for the best coverage for the right price in Arizona, then you should contact an agent at Berkshire Hathaway Home Services. Our numbers are: (480)-730-0015
We would be happy to set up a free consultation with you to make sure that we can find the right insurance plans for your home in Arizona. At Berkshire Hathaway Home Services, our main goal is to look out for our clients and find them the best insurance plan that works best with their budget and their situation. We are experienced and honest professionals who understand that each customer has a different situation. We will do our absolute best to help you get the coverage you need at a price you can afford.