I read with interest recently that Countdown have launched an insurance venture on their website, backed by Cigna Insurance. Personally I find the tag line for this misleading.'Looking after you and your family with simple, great value insurance'
I think it's fair to say that most people would read this and assume that this deal gives them a significant discount compared to other insurers -this is simply not the case.
I've done a simple comparison (below) based on my age and gender, and as you can see there is only a minimal price difference when compared to other providers.
Monthly Premiums
**Note: the basic and comprehensive trauma policies listed above each have distinct benefits depending on the provider and should not be considered 'like for like'.
When purchasing this type of cover online, there are some critical things that often get overlooked:
- The trauma cover is limited to only 10 conditions. There are alternative policies that cover up to 46-54 conditions (at more cost), these provide much more comprehensive cover.
- The trauma cover is an accelerated benefit (the life insurance benefit reduces by the amount paid under any trauma claims).
- The critical importance of disclosure. It is so important to understand as this can have a huge impact at claim time.
The thing that bothers me with this and other online insurance offerings, is that too often Kiwi's will purchase insurance without getting any advice. Advice - and choice of providers - is available from any reputable insurance adviser, at no cost to the client. A commission is paid (by the insurance company) to the adviser if a policy is taken out, in the case of the Countdown / Cigna arrangement, it appears that a commission is paid to Countdown….no advice given….
Advice, choice of provider and support at claim time - all valuable and all available at no cost from a reputable adviser….why wouldn't you use one?
