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Nationwide Insurance Broker

Updated: Dec 23, 2021

Nationwide Insurance Products

One of the questions on the mind of most health insurance policyholders is how much health insurance brokers make per policy. Before taking your cove, you may not be sure if you will be paying the brokerage fee alongside your premium or if the broker will bill you separately for his brokerage service charges.

We are here to unravel this for you. Your health insurance broker will not charge you an extra fee to cover his service fees. His charges are already included in the policy amount your health insurance cover provider will quote for you. Here is how it works.

Broker of Record

A broker or health insurance agent will probably approach you to discuss the options available for you. When you decide on the kind of cover to take, you may work with a particular broker or agent to help you understand and sign up for it. The person you choose becomes your broker of records, acting as the link between you and the health cover provider.

You will then sign a letter of broker of records indicating that you have accepted to work with this broker. It will be the first contractual step between the broker and the health insurance providers and the broker and form the basis of his payment.


Brokers earn a commission for every new policy they help a client sign. The commission is not levied on the client directly. Although the regulations differ from state to state, most insurance companies follow the 80/20 rule, with 80% of the policy amount going to your medical cover and 20% for their administrative costs, including paying brokers and agents.

The 80/20 rule is a requirement under the Affordable Care Act. It ensures that the highest chunk of your insurance premium goes towards your health insurance, limiting the amount your insurance provider can use for other costs such as marketing, overhead, and broker commissions.

How Do You Benefit from Working with an Insurance Broker?

An insurance broker is always updated on the new health insurance products that can suit you or your business. If you are working with one, you will receive this information as soon as it is available.

The broker will not charge you an extra fee for updating you on appropriate health insurance products you can take advantage of. This will take away the burden of researching and navigating the wide health insurance industry to identify the best plan for you and your business.

Bottom Line

Whether you buy your policy from a broker or directly from an insurance company, you will pay the same amount for your premiums. The insurance company pays the broker an agreed percentage of the premiums you pay.

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