The merits of using a life insurance broker in the digital age

With technology playing such a huge part into today’s society, it comes as no surprise that many life insurance companies are utilising the online world to obtain customers. It is now possible to arrange most forms of insurance online without the need to interact with an actual human being – Life insurance included.

But does this make life insurance brokers obsolete?

Life insurance brokers utilise human interactions to understand the needs of their customers and compare options to find the right solution to suit their needs – whether this be face to face or over the phone. But, whilst it can be tempting to view this model as one from the dinosaur ages, it still has its merits even in the digitally advanced age we find ourselves in.

And here’s why…

Contradictory information

Unlike many forms of insurance, life insurance can be an extremely confusing product. When arranging cover using an online platform, you will be required to have a level of understanding to ensure the cover you are arranging is the best suited to your needs and offers the protection you require.

As a result, if applying for life protection independently, it is likely you will find yourself having to carry out a large amount of research online before going ahead with a policy.

Unfortunately, the freedom of the internet allows anyone to publish information online. Therefore, when carrying out your research it is possible to come across contradictory or, in some instances, false information. This could lead you into a false sense of security; believing you have arranged the most appropriate cover, only to leave your loved ones with the short fall upon your passing.

An FCA registered broker will have all of the accurate information you require about the policy types available to you, as well as in-depth knowledge regarding the terms and conditions, to allow you all the information you require to make an informed decision.

Get quotes and gain understanding too!

One of the most common trends within the online life insurance world is the use of price comparison sites. When arranging life insurance cover, it is always recommended to compare multiple quotes to ensure you are receiving the best value for money. But the price isn’t always enough.

Whilst there are some insurers which may offer significantly lower prices than others, it is not uncommon for hidden clauses or other shortfalls to come with them.

Life insurance brokers will be able to provide you with multiple quotes from the market leading providers, ensuring that your policy is not only cost effective, but that you also have all of the understanding of how your cover is affected by price, and any changes you can expect in the near future.

One of the most common occurrences of this is providers offering significantly low prices which will increase in terms of monthly premiums year on year. It is easy to see how this increase could become unaffordable in the future, therefore, potentially making the most cost-effective solution now, not the right cover for the long term.

Ensure your application is correct

As discussed, life insurance is one of the more complicated insurance products on the market. It provides long term cover, and therefore, the application process is not one we are commonly familiar to.

As a result, when arranging life insurance cover, it opens the opportunity for your application to not be completed correctly. Unfortunately, an incorrect application could lead to your cover being invalid in the future when your loved ones attempt to make a claim.

A life insurance broker will be able to complete the application on your behalf to ensure all of the information required is included and that your full application is correct. It will give you the opportunity to ask questions to prevent you from ‘guessing’ what to put in certain fields and as a result, you can have peace of mind that your protection will be valid.

Understand your likelihood of being declined

It is common practice to be asked if you have ever previously been declined for life insurance when applying for cover. And unfortunately, a previous decline, could result in future applications also being less likely to be accepted.

Therefore, when arranging life insurance independently, unknowingly, you may be looking to secure cover with a provider that is likely to decline your application and further hinder your chances of arranging cover in the future.

The good news is, by using a life insurance broker, you will be speaking with an expert who will have the knowledge regarding the various providers to determine your likelihood of being accepted.

Pre-existing conditions and lifestyle factors could influence your likelihood of obtaining cover, but this differs on a provider to provider basis. Therefore, by securing cover through a broker, they will put your application in the hands of the providers most likely to accept your request given your personal circumstances.

Don’t forget the broker…

As you can see, whilst we may be powering ahead into the digital age and minimising human interaction, certain aspects of life will always be safest in the hands of a human being – Life insurance being one of them.

This may take slightly longer than a few clicks online, but it could allow you to make the most of your selfless investment and protect your cover from being invalid in the future.