Life insurance brokers: do we still need them
Thanks to the internet, people have more life insurance options at their fingertips than ever before – and are increasingly researching and buying insurance for everything from holidays to mortgages to life insurance online. So do we still need the life insurance broker?
Can we save you money on your life insurance or critical illness?
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In the pre-internet age your life insurance broker would have been your first port of call before you bought a policy.
They would come recommended by family or friends, or found in the phone book; you would meet face-to-face in their high-street office, and they wouldn’t usually charge you for their services, taking a commission from the insurer instead. What was there not to like?
Downsides of the life insurance broker
One downside of buying life insurance through a high-street broker is that they frequently offer a limited range of products, often from a small number of companies.
There is also little transparency in the services offer. There are good reasons why a life insurance broker doesn’t go into detail about every product they could offer you – with thousands of different ones available, it could take several days.
Thirdly, few life insurance brokers will happily discuss your options during the ten o’clock news – which may be the most convenient time for you to consider the subject.
The internet addresses these concerns. Specialist comparison websites – effectively brokers themselves – can offer a huge range of products from a large number of life insurance providers. You see everything on offer and can research products in as much detail as necessary; and you can log on when you want, for as long as you need, from the comfort of your front room.
Life insurance brokers can give valuable advice
But when faced with the huge choice of products offered so conveniently by the internet, are we all equipped to pick the life insurance policy that we need?
While some comparison websites offer advice (in the form of customer comments and ratings), the biggest benefit of using a real-life, human, life insurance broker may be their ability to offer advice based on specialist knowledge and experience.
Life insurance brokers registered with the Financial Services Authority can give advice on insurance that can prevent you making costly mistakes.
You may think you need a whole of life policy that pays out a sum equal to the value of your house on your death. Your life insurance broker may advise a decreasing term assurance policy for the sum of your mortgage less the value of the death-in-service benefit your employer offers.
It may sound like a confusing distinction, but it could save you hundreds of pounds over the years. And with many life insurance brokers now being found on the internet, there may be a future for them yet.
Jump Money is a specialist in critical illness and life insurance cover and is happy to answer any questions you may have related to life insurance, life assurance, term assurance and life cover. The company will strive to fit an insurance package to the exact criteria you need in order to help you avoid buying products you do not need as well as helping you fully understand your purchase.
To find out more about how Jump Money can help you protect yourself and your belongings call now on 0845 8516262 or fill in an online quote form today.
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