Insurance cheaper through advice channel

According to Life Insurance Direct Australia – which analysed more than 20 life insurance offers – while direct insurers may be quick and easy, they are not always the best value for money.

“Interestingly, 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 that for a 50-year-old male wanting $500,000 of life insurance, the difference between purchasing a policy through an adviser and through a direct insurer could vary by up to $1,600 per year.

Mr Cain stressed that while price is one consideration when a client purchases 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,” he said.

Life Insurance Direct has compiled the research findings into an online resource titled the Life Insurance Direct Quote Index.

The tool allows clients to enter their gender and level of insurance cover needed; it then generates a graph showing the cost of insurance policy premiums, based on entry age, for each company selected.