Why you will eventually pay your broker a fee

Assurant  has announced they will be cancelling commissions on individual medical products:

“The Milwaukee, Wis.-headquartered insurance carrier Assurant Health will no longer pay commissions on new business in certain markets of the United States, a move the carrier calls a sales approach, but some benefit advisers feel is a slight.

Assurant Health has cut commissions on new business in Florida, Nevada, Georgia, Indiana, Michigan, Pennsylvania and Texas. A spokesperson for the insurer says the changes impact individual major medical products, but not the supplemental, short-term medical or small group products Assurant Health offers.”

This is not a shock, considering that their products are already way overpriced in many markets.  However the broker fee (2-5%, depending on the market) is a small price to pay.  Consumers need educated and impartial guidance and 70%+ of consumers use a broker.

But will they be willing to pay $200-$500 a year for the broker of their choice?  That remains to be seen.