Direct life insurance premiums are on average significantly more expensive than retail premiums, according to research from Life Insurance Direct Australia.
The findings draw on the 2016 Life Insurance Direct Quote Index, which is based on research of more than 3,000 quotes from 32 brands.
This year’s index includes premium data for policies sourced through eight major super funds, as well as the direct and retail policy markets, Life Insurance Direct said in a statement.
The research revealed that direct life insurance policies are significantly more expensive than retail policies. The index reveals that a 45-year-old male seeking $500,000 life insurance could pay premiums ranging from $41.00 to $132.43 per month, amounting to a difference of more than $1,000 annually.
There are many misconceptions about which brands deliver value. The only way to ensure you get this decision right is for consumers to engage with a financial adviser to the research as life insurance premiums and policy benefits which can vary dramatically between brands.
We speak to people all the time who have no idea they are being overcharged on their premiums or where to find good value for money. In fact, most either have too much or too little cover as well.
There is nothing simpler than putting this process in the hands of an adviser.
The information provided here has been provided as general advice only. We have not considered your financial circumstances, needs or objectives and you should seek the assistance of your Adviser before you make any decision regarding any products mentioned in this communication. Whilst all care has been taken in the preparation of this material, no warranty is given in respect of the information provided and accordingly neither we nor its related entities, employees or agents shall be liable on any ground whatsoever with respect to decisions or actions taken as a result of you acting upon such information.