Risk of Going Direct to the Insurer to Get the Best Deal

Don't go direct...

Are you looking into life insurance for the first time? Are you unfamiliar with the subject? Not sure if you should go to companies directly or use a broking service?

It's easy for an insurance broking service like Lifebroker to say "pick me!", "don't go direct!", but it's also easy for us to convince you why.

The most important reason for not going direct is that most of the comprehensive life insurance policies on offer to the public are only available through broking services. Insurance companies leave it up to life insurance brokers to talk to the clients about the products, run through the applications and help them through the process.

You are able to deal with insurance companies directly but the products on offer are, for the most part, not good value for money. The life insurance companies which sell the direct products ask very few medical and occupational questions. With little questions asked, the insurance company is not able to fully underwrite your policy. This leads to insurer’s making assumptions about your health and charging higher premiums than they should.

Time poor individuals, or people who are uncomfortable with going through their entire medical history, are those who view the direct life insurance as a valid option. What they also don’t realise, besides a higher premium, is that there can be standard exclusions placed onto their policies.

There can be automatic exclusions for people with anything from mental health issues to diabetics. You may end up paying premiums for a product that doesn’t even cover you.

Besides the obvious disadvantages of dealing with insurance companies directly, insurance brokers like Lifebroker do all the hard work for you.

A broking service will compare products, complete applications and ensure your policy goes into force as quickly and smoothly as possible. They are there to ensure you have a hassle free process; these are just some of the many reasons to not go direct to the insurer.