xLife warns of ‘off the shelf’ life insurance policies
It’s true that the direct life insurance market has grown over the past year. We’ve all seen and heard the advertisements on TV and over the radio. However what many people may not realize, is that these ‘off-the-shelf’
So why are so many Australians choosing direct life insurance instead of selecting a life insurance policy underwritten specifically for their needs?
xLife Director, Russell Cain, believes it all comes down to education.
“So many people are throwing away their money when they buy off the shelf products. If you do your research and find the right policy, you could potentially save thousands of dollars over the life of a policy.”
That’s right, thousands of dollars, and in our current economic climate, thousands of dollars is a lot of money.
Research released this year (2010) by Rice Warner Actuaries looking into ‘Direct Life Insurance Products’ states that the relative cost of direct to consumer life insurance remains high, due to its typically minimal underwriting requirements, which sees the direct life insurance products costing between 150% and 400% of similar products offered within industry superannuation fund products, and between 85% and 125% of intermediated full retail product offerings.
Many Australians are throwing their hard-earned money down the drain, or rather into the pockets of some life insurance companies who sell off-the-shelf life insurance policies.
Mr Cain goes on to explain that life insurance policies don’t have to be expensive, and that the old belief of life insurance being expensive is completely wrong. In fact, in many cases life insurance can be cheaper than car insurance.
So it stands to reason, that if you’re willing to insure your car, it would surely be worth your while insuring your life as well?
Russell’s top tips for getting the best life insurance quotes:
• Compare premiums based on the same payment structure (stepped or level)
• Compare standard and optional benefits outlined in the Product Disclosure Statement (PDS)
• Compare at least 3 different policies from different providers
xLife compares life insurance, income protection and trauma insurance online, helping Australians find the most competitively priced policy best suited to their needs. For a free life insurance quote, contact xLife on 1300 135 205 or go to http://www.xlife.com.au/
