Agent links complex issues to provide best plan, price

by Jan K. Allen

SBJ Contributing Writer

The insurance agent has always had the job of writing, servicing and acting as intermediary between the policyholder and the insurance carrier, but that role has expanded to financial planner and adviser for certain types of policies, according to local agents.

It was once the norm for agents to be policy vendors, servicing their clients, but selling on the basis of the products they had to offer. It is now imperative that the good agent is taught to sell on a needs basis and match the product to the needs, according to Mike Morris, general agent with Kansas City Life.

"It's a coordination and quarterbacking relationship," said Dan Burns, partner with Employee Benefit Design.

Burns said his company typically does several things under the umbrella of employee benefits packages, including health, dental, life, disability, cafeteria and retirement plans. Also included are specialized products, such as key person insurance, for the business owner who needs additional insurance products for himself and other top-ranking people in his company.

With insurance coverage and government regulation becoming more complicated, the agent is the link that brings the pieces of the puzzle together, Burns said.

The first step, according to Morris, is to do an in-depth fact find for the client to assess his goals and needs. From the analysis of the information gathered the agent can make recommendations to fit those individual needs.

Darren Coffman, president of Benefits Unlimited Inc., agreed. His agency works with about 60 insurance carriers to provide clients with the best match at the most affordable price, based on their individual situations.

It is important to inform the client of his many options with an insurance plan and to do a periodic review to make sure the coverage is adequate or that the policyholder's situation has not changed, requiring changes in the policy, Morris said.

The agent plays a vital role in making sure the company owner gets the right plan and the best price available, then he or she continues to assist and educate the business owner and his employees about the benefits and limitations once the policy is in force, Burns said.

On the financial planning side, it is important for the agent to keep up with products within the investment portfolio to make sure they are performing as expected, Morris said. With the complicated products now available, the agent has to be a financial adviser as well as an agent, he added.

Meanwhile, it is also incumbent upon the insurance agent to keep up with federal and state regulation and what is going on in the industry, Coffman said.

"Education and the ongoing relay of information about changes in legislation and other issues about their insurance plan is the key to the relationship," Coffman added.

Personal service, following up and following through, are the components that make it all work, local agents agreed.

Burns said he, his partners and staff are available every step of the way to assist with implementation of the plan and servicing once the plan is in place.

Coffman said Benefits Unlimited Inc. likewise provides step-by-step assistance, from implementation to information and claim service. The agents and staff handle more than 80 customer service calls per day for its 700 group plan customers, and agents often act as intermediaries to help settle claims issues, he said.

Morris said that with life policies, his agency does the paperwork from A to Z and walks the beneficiary through the process. And with investment and retirement plans the process is a hands-on situation from beginning to end.