Life and Illness Cover – Price Comparison Versus Insurance Brokers?

January 17 2012 by Jessica Scully in Loan Articles |No Comments

Life used to be so simple. When you wanted money, you went to the bank. When you wanted meat, you went to the butcher. And when you wanted insurance, you went to an insurance broker. But things have changed, in the modern world you could pop down to Sainsbury’s and buy all three. With so many insurance options it can often be hard to see the wood for the trees when shopping for online insurance, and with online price comparison websites taking the place of traditional insurance brokers, it can be hard to decide which route to take. But it needn’t be, we’ve put together these top tips to help you decide whether price comparison sites or insurance brokers are the route for you.

The fact is, nearly two-thirds of the UK population now shops for their life insurance online, with the aid of price comparison websites, and in the current tight financial climate the low life insurance quotes offered by such sites can be tempting. Moreover, by aggregating information from across the vastness of the internet, comparison sites can claim to offer a wider range of choice than your high street broker. But while this may be true, this decision isn’t always quite so straight forward, and you shouldn’t rule out the more traditional broker route as getting the ‘cheapest option’ isn’t always the right decision for your insurance needs.

When it comes to life and illness cover, it’s important that your policy is tailored to suit your requirements. Say for example, you have history of serious illness in your family you might want critical illness cover to provide financial security towards treatment and recovery. Not all life insurance policies will cover you for these eventualities, and because online price comparison sites compare quotes based on set parameters, they might not take this into consideration. An insurance broker will be able to take these specific needs into account when finding you the best quote. Plus, while online comparison sites do offer a broad range of choice, your average broker will have a big selection of trusted insurance providers to choose from.

Likewise, insurance brokers might be better placed to find specialist insurance for instances that are difficult to insure. Some providers might be less inclined to offer good premiums if you have a history of ill health for example, or likewise, if you want to get mortgage life insurance, which will pay out to your mortgage provider, securing your investment on your death, it might be hard to find the right cover to suit your home. In this instance, an insurance broker might be better placed to find you the best deal, and their personal approach means they can enter into a conversation with the providers that a faceless website will not.

That’s not to say price comparison sites don’t have their plus points. For young people, who are used to managing their personal and private lives online, they offer a quick and easy route to finding the best life insurance. And in a saturated market can help you narrow down your choices. What can prove sensible is to use the online sites to give you a few choices, and then go to a broker to discuss them in finer detail, bringing you the best of both worlds.

The most important issue here is trust. If you’re uncomfortable with the online world, the friendly face of the high street insurance broker can provide an opportunity to talk through your needs and worries. But if you’re happy online, it’s important that you make sure you read through any small print before you make your final decision. Both brokers and the biggest price comparison sites should be subject to rigorous checks by the relevant independent authority, but make sure you have your eye on the ball to ensure you make the best decision for you and your family.

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