Advice channel cheaper for insurance
Purchasing life insurance through direct insurers is more expensive for a client than if they were to go through an adviser, says Life Insurance Direct Australia.
Research conducted by the insurance comparison company – which carried out an analysis of over 20 life insurance offers – found while direct insurers may be quick and easy, they are not always the best value for money.
“What we discovered was that generally speaking, premiums on retail policies offered via financial advisers are often significantly cheaper than those offered direct to the public by big brand insurers or providers,” Life Insurance Direct chief executive Russell Cain said.
As an example, the research found for a 50-year-old male wanting $500,000 of life insurance, purchasing a policy through an adviser compared to a direct insurer could vary by as much as $1,600 per year.
Mr Cain stressed that while price is one part when clients purchase insurance, it is important not to just settle for the cheapest option.
“While price is not the only factor when considering life insurance, it is important, so it is critical to shop around, get educated about life insurance, and speak to an expert and compare.”
Life Insurance Direct has compiled the research findings into an online-based tool called the Life Insurance Direct Quote Index.
Clients enter their gender, age and the level of insurance cover needed and the tool then generates a graph showing the cost of insurance policy premiums for each company selected.
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