Don't want to deal with a life insurance adviser? Get a direct life insurance quote.
Don't want to deal with a life insurance adviser? Go online and get a direct life insurance quote. Direct life insurance policies are designed to be purchased direct from the insurer to cut out the need for a adviser. If you don't want to go through the underwriting process at the outset of a policy, get a direct life insurance quote today.
What are the different types of direct insurance quotes available online?
You can generally get direct insurance quotes for:
- Term Life Insurance. Receive a lump sum benefit payment for death or terminal illness.
- Funeral Cover. Lump sum provided to cover funeral expenses following death.
- Accident Cover. Lump sum provided for death resulting from accident and/or injury only. No benefit payable for serious illness.
- Trauma Cover. Lump sum benefit paid if policy owner suffers a condition listed in their policy.
- Income Protection. Policy owners provided with an ongoing monthly benefit of 75% of their regular income if they are forced out of work as a result of serious injury or illness that they have suffered.
Growth of direct life insurance popularity in Australia
Direct life insurance has experienced a steep incline in popularity in recent years with over 200 different direct products available to consumers (an increase of 86%). Sales in 2011 alone totalled $279.2 million according to Rice Warner Actuaries. This is only expected to continue with a report from Plan For Life predicting direct life insurance to account for 40% of Australia’s insurance market by 2021.
With so much of our day-to-day lives carried out online it is easy to see how direct cover is becoming a popular choice for many Australians. Many people who are looking to take out cover are at hectic times of their life and may not feel they have the time to work through an adviser and compare different policy options.
Benefits of direct life insurance
There is a range of benefits to consumers that has contributed to growth in popularity of direct life insurance in recent years.
- Simple application process. The applicant can receive cover without having to complete any medical questionnaires or even work through a financial adviser. Cover can be taken out either online or over the phone and rarely will the applicant have to deal closely with a representative from the insurance company.
- Limited or no medical underwriting. One of the key benefits that draw many people to taking out direct life cover is the limited medical underwriting that is required. Applicants are not required to spend time collecting medical information. This is achieved through:
- Automated underwriting
- Products designed with exclusions to override risks including serious pre-existing health conditions, dangerous occupation and dangerous occupations
- Maximum levels of sum-insured on policies
- Straightforward products. Many applicants like the simplicity of direct life insurance in just offering the essential features beneficial to a broad group of buyers.
Drawbacks of direct life cover
While there are many benefits of direct life cover, there are some benefits that may lead people towards taking cover out through an insurance consultant:
- Simplicity of policy. While some buyers may like the simplicity of direct life products, other buyers may feel that they do not offer the same level of tailored cover from other plans. Buyers of traditional plans can take advantage of additional extras that may provide the extra level of protection they need.
- Reduced sum insured. Many direct life products only provide a reduced sum-insured to that of other retails products. In the event of a claim, the sum-insured may not be enough to provide adequate cover for all financial obligations.
- Cost. Direct life cover may offer a simplified application process but it is generally more expensive to policies through insurance advisers. A 2012 report from Rice Warner found that direct insurance products could be up to 184% more expensive to those products offered through a insurance advisers. As the direct market continues to grow, the industry may see a decrease in cost as competition among providers grows.
- More exclusions. Reduced underwriting unfortunately means that there must be an increase in the exclusions on policies. Many direct providers will place exclusions on dangerous sports and pre-existing conditions.
- Decline of premium loading on policies. Clients that do have health conditions at time of application are likely to have a premium loading applied to their policy or have their policy denied altogether.
Receiving direct life insurance quotes
Know what events are covered
As is the case when looking to take out any insurance product, it is crucial for applicants to be crystal clear on what they are actually covered for. By offering a “blanket” type of cover to consumers, insurers will often exclude certain risk events to ensure premiums are not driven up too high. While there may be the benefit of reduced medical underwriting, applicants still need to be clear on what conditions or events the policy won’t cover.
Compare different options
Just because you are purchasing cover direct doesn’t mean you can’t take the time to review different policy options when looking to compare quotes. Each direct life insurer should feature a product disclosure statement on their website giving an overview of the policy features and terms and conditions. By not working through a consultant it is necessary for applicants to take more time to have an understanding of their policy needs and the different features that may be suitable for them.