How to Find the Cheapest Life Insurance

by admin on May 18, 2012

With all of the television advertising that is being done lately, more and more Australians are learning about the importance of life insurance.

One of common reasons given by people for taking out cover is the belief that life insurance plans are expensive, but the truth is that you can find good value life insurance is you look properly.

There are various ways in which you can look for the cheapest life insurance.  In this article we will look at some of the most common methods used.

Online Comparison Websites

Improvements in technology have made it easier for Australians to obtain and compare life insurance quotes online via comparison websites.

These websites enable visitors to enter their vital details such as age, smoking status and occupation, and the website will then return a number of quotes from different insurance companies for the level of cover you have selected.

You can then compare the quotes offered by each insurer, and in some cases you can even compare the features and benefits of each policy from a single screen.

Many of the comparison websites also allow you to apply for the cover online.  This generally works by the comparison website directing you to a secure form on the insurance company’s website, and by going ahead with the policy the website owner will generally receive a referral fee or commission.

Go Direct

A number of insurance companies have been boosting their direct insurance offerings over the last few years.  Going direct means that you approach the insurance company directly for your quotes and service, rather than going through a financial adviser or comparison website etc.

Going direct can seem like a good option, however it is time consuming to approach a number of insurance companies directly to compare all of the various life insurance and income protection plans available.

There is a misconception amongst some members of the public that going direct for their insurance instead of using a financial adviser is cheaper, but in many cases this is not actually true.

When it comes to the major insurance companies, generally the cost of your personal risk insurance will be no different regardless of whether you go direct or via a financial adviser.  The only difference is if the adviser charges you an additional service fee, however this is not the norm.

Use a Financial Adviser

Many Australians continue to use a financial adviser or planner to assist with their personal risk insurance needs such as life insurance and income protection.

The benefit of using a financial adviser is that they can obtain quotes from a wide variety of insurers in a short time, and they can also use their knowledge and experience to help with the most suitable insurance package that will suit your needs.  They will also generally know which policy will provide the best value for your particular circumstances.

Although it is an adviser’s job to find the most appropriate cover for you rather than the cheapest insurance, if you specifically instruct them to find you the cheapest life insurance then they should be able to help.  They will likely have to provide you with a written warning that the cover may not be appropriate for you and is based on price alone.

If using a financial adviser you need to ensure that they are properly qualified and licensed, and you should also ask them if they charge any additional service fees.  Most advisers don’t charge extra fees as they are paid a commission by the insurance company.

What’s the Best Option for Cheap Insurance?

In trying to find the cheapest insurance with less regard for the suitability of the cover, you will probably find that a cheap online or telephone policy will be the winner.  But if the insurance is not suitable for you, then you’re really just wasting your money anyway.

The best option for you will really depend on your own preference and attitude.  Some people prefer to do everything online, avoiding the need to speak with any sales people.  Others prefer to sit down face-to-face with an professional adviser.

There is no problem with going it alone and using a comparison website or going direct to the insurer, but do make sure that you do your research and understand exactly what it is that you need.  The financial security of your family is not worth getting wrong for the sake of trying to save a few dollars each month.

For more information on finding the cheapest life insurance please speak with a qualified insurance specialist or contact your insurance company directly.

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