The Internet has made it easier for individuals to compare prices on furniture, sports gear, electronic equipment and now financial services such as insurance. Although not exclusive to the Internet, direct life insurance is insurance bought directly from the insurance company by the individual, instead of requiring him or her to go through a broker. Direct life insurance has a few advantages over brokered life insurance.
Direct life insurance is quicker
With conventional methods of obtaining insurance, a broker would phone to set up a meeting to obtain information pertinent to a life insurance risk analysis. This information, such as your profession, habits, lifestyle, medical history and health condition, help the insurance company determine how much of an insurance risk you are. The broker then takes this information and calculates an insurance quote which he or she will email back to you a few days later.
Direct life insurance companies also require the same information from the insured, but they obtain it quickly over the phone and provide a quote then and there. It’s much quicker which makes it easier to compare which also means:
Direct life insurance provides more choice
Direct life insurance led to the advent of online insurance aggregators. These companies source multiple quotes at once from various insurance companies on behalf of individual customers. As direct life insurance makes obtaining life insurance quickly possible, multiple insurance quotes can be compare at the same time.
This means that the insured has a wider choice more readily available to compare. In fact, the direct life insurance model is so popular among short-term insurance companies that direct insurance companies have either entered the market or created a direct life insurance component or product.
Direct life insurance makes it easier to negotiate
While it has not been proved that direct insurance is cheaper, because direct insurance companies have big advertising budgets instead of brokers’ commissions to pay, it can be proved that comparing life insurance quotes online gives individuals bargaining power. If an individual can show his or her current insurance company how much another insurer is prepared to charge for cover, then his or her current insurance company may offer a discount to compete.
To compare a range of life insurance quotes, why not fill in our online form. We’ll get a range of quotes for you over the phone.