There has been a lot of advertising lately around life insurance sold direct to the public. Unfortunatley cheaper insurance sometimes can come at a cost.
Many of these policies will offer you a discount for the first year, or a 'cash back' for applying online. And while these options seem great (who wouldn't want cheaper life insurance) it is important to consider what you are sacrificing in favour of a discount, which is often quite small.
Firstly, you don’t receive any advice. While this might not be an issue if you’re only after basic life insurance cover, some of the other benefits available - like income protection or trauma for example - can be quite complex. This is where the advice of an experienced insurance adviser is important. An adviser will present options that are tailored to your individual needs i.e. the most comprehensive cover you can get for a premium that you are comfortable paying.
Not disclosing a medical condition could hurt you come claim time.
Secondly, when is the policy renewed? With any insurance bought online you'll need to remember to review the level of cover yourself. For policies issued by an adviser or broker, you should expect to be contacted at least once a year to discuss if the policy is still “fit for purpose. Remember a lot can happen in twelve months.
Many of the online application forms are very simple with minimal questions. While quicker and more convenient to complete, you need to be careful that you disclose all medical conditions (however insignificant they may seem). Not disclosing a medical condition could hurt you come claim time.
It's vital you take your time when completing any insurance forms. Having an adviser who can sit down with you and help you complete the forms is hugely beneficial.
Lastly, and probably most importantly, who is going to be there to help you at claim time? With online insurance, you would need to contact the insurance company, get the forms sent to you, complete them and liaise with the insurance company (or have a family member do this for you)––all during what is probably an already very stressful time.
An adviser will present options that are tailored to your individual needs.
With an adviser, this is what they are there for––to help you out at claim time. They take care of all the paperwork, so you can relax and focus on getting better.
Your adviser will follow up with the insurance company, chase your doctor for any medical notes and get your claim sorted for you as quickly as possible––one less thing for you and your family to worry about.
So with all of the advantages that come with an adviser, is the online discount really worth it?
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