Should you use Life Insurance Brokers?

Life insurance is something a lot of us don’t think about, seeing it as a far-off concern for future-you to worry about.

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Life insurance is something a lot of us don’t think about, seeing it as a far-off concern for future-you to worry about.

However, as your responsibilities in life grow, together with your income, number of dependents and fiscal obligations, life insurance is something you might be looking to purchase.

This insurance policy pays a certain lump sum upon your passing so that some degree of financial security is assured to your dependents from you, even after you’re gone.

But how do you go about obtaining life insurance?

There are several ways to do this, including the use of life insurance brokers, which is what many choose to use in their search for a life policy that suits them.

There are several ways to do this, including the use of life insurance brokers, which is what many choose to use in their search for a life policy that suits them.

Let’s look at if using a life insurance broker is the way forward for you.

Comparison Sites Pros and Cons

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The most common way of finding anything in this world today, whether it’s a house, a new car, and of course insurance begins with the internet.

Price comparison sites began as an innovative solution to bringing the multitude of financial service options available into one place for the customer to choose themselves.

There are many positives that this new way of finding life insurance brought to the consumer market:

The first is how quick the process is.

You are able to fill out one application form online from the comfort of your sofa, and with a few clicks of the mouse able to generate quotes in seconds.

If you are in need of a particular insurance product pronto, then Price comparison sites can help you find a provider quickly, with the only limitation being how fast your internet speeds are.

Having got your results back from the comparison site, they are also presented in a way that’s easy to digest and make a judgement yourself on which product you might want to buy.

Monthly premiums, features, and additional benefits are all laid out so you can easily compare the products against each other.

Usually there are many options to choose from also.

What is not immediately obvious however is that whilst there are many options initially presented, this might not represent the entirety of the market.

Some insurance providers prohibit their products from being listed on these sites, and indeed even some that are listed might even have better prices when you go to them directly.

Not only that, but sponsored products might even skew your results making something look more attractive and suitable to you than it really is.

Finally, in this day and age of mass marketing, one must be aware of how these companies use your personal data.

Luckily most companies will have to abide by regulations that protect consumer data, but one can never be too careful.

Advantages of Using a Broker

One might think a key advantage of price comparison sites is that their services are free to use, seemingly offering consumers something for nothing.

One wonders how they make their money? Well, these sites are paid a commission based off of the customers they send that insurer’s way, and so they do not need to charge the users of their website.

However, the same is true of a life insurance broker.

Life insurance brokers essentially work the same way as a price comparison website, but instead of being an automated database, give potential customers a hands-on human approach.

Like price comparison sites they too work off a commission, so whilst you get to speak to a person, this doesn’t mean it needs to cost you more.

Sometimes speaking to a person is far better than just dealing with a website.

If something goes wrong or you want extra clarification on something, you will have a human on the other end of the phone to explain or resolve the issue.

Indeed, choosing a life insurance broker will result in you being able to engage the services of a true expert in that field, who can give you proper guidance on what is the right policy for you.

If you have a particular circumstance that is unique to you, a life insurance broker will also have a far better chance at finding a tailor-made policy customised for your needs.

Price comparison sites can be great at getting options for broad and general policies, but for something more manuscript, a life insurance broker could be a better option.

In the event of claim, you will also find using a life insurance broker beneficial. Obtaining an insurance policy by yourself means that it is up to you or your beneficiaries to sort amendments to the policy, or ensure the claim is paid.

A life insurance broker is not just a person you use at the beginning of your search for life insurance, but also throughout the policy’s duration and when it comes time for a claim to be made.

Disadvantages of Using a Broker

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Of course there are some drawbacks in using a life insurance broker. These come down to personal preferences more than anything else.

Obviously using a life insurance broker adds another person to the chain, so you now have an intermediary acting upon your behalf to the insurance provider.

Some people might not like this, as it generally slows down the ability of your policy and insurance provider to respond as quickly as they like: they have to go through their broker, to the provider and then back via the broker again.

In addition, since most life insurance brokers will be looking for a more tailor-made policy for their customers, it is also the case they do not provide as instantaneous a result as price comparison sites.

If getting a life insurance policy is time critical, this might not be as suitable an option.

However, if you are looking for a unique insurance policy that covers your specific needs that fall outside of an ordinary life insurance policy, this will be extra time well spent.

Insurance Providers: Direct Access

Of course, the other option beyond price comparison sites and life insurance brokers is to call up insurance providers yourself: this could give you access to deals comparison sites don’t have, and also means there is no intermediary between you and your policy.