Why use an insurance Broker? – Top 5 Reasons to use an Insurance Broker over a Comparison Website to source Protection…
A lot of people source their mortgage protection using a price comparison website in the hope of finding a ‘’great deal’’ so why use an insurance broker?
While it may seem like you are getting great value for money, value is usually the one thing you aren’t getting, there is a reason than the premium is cheap. Cheap but no-so cheerful!
Here are the top 5 reasons why you should seek advice from an insurance broker when sourcing the best Protection for your Mortgage or Business protection:
What is important to you?
It is quite apparent that Mortgage Protection may not be at the top of your priority list after the expenditure involved with taking out a mortgage. However, an insurance adviser can sit down with you over a cup of coffee and work out what is important to you i.e. protecting your mortgage, income, children, your home etc. If budget is a priority to you, an adviser will source an insurance provider who can offer a quality product for a cheaper premium and ensure that you cut costs in the right places, making sure you have adequate protection for the things that are important to you. A comparison website may be able to source protection that will offer you a cheap premium, but the cost is likely to have been cut in the wrong places which could backfire on you in the event of a claim and reduce the likelihood of receiving a pay-out when you need it.
When applying for protection, whether it be Life, Critical Illness or Income Protection, an insurance provider will require your medical history to be disclosed. Often, if you have had problems with your health in the past, an insurance provider will assess the risk and either exclude the condition from your protection account or increase the monthly premium to account for the risk. Advisor’s have access to extensive research that can be used in this scenario to find a provider that can offer a good quality product and give a fair underwriting decision that will be best suited to your needs.
As well as sourcing great protection insurance for those with a medical history, advisors can also use extensive research to find the most comprehensive cover in terms of what is included in your policy. Few comparison websites illustrate the differences between policies in as much depth as the research carried out by an adviser. By researching, an advisor is able to find the most comprehensive cover including a detailed list of all the critical illness definitions included in any policy. This can be of great advantage in the event of a claim as it increases the chances of receiving a pay-out in the time that you will need it most.
The service of a financial adviser does not end once your policy is in place. As years pass, it is natural that your circumstances will change and so do the rates of insurance providers including the quality of their products. Often, people will take out protection cover when completing on their mortgage and forget about it until it’s needed for a claim. However, this is quite risky, as what needed to be protected at the time you completed on your mortgage is likely to be different from the time you need to claim. For example, you may not have had children when you took out your protection, but have some by the time you come to claim, therefore you may need an extra bit of money to support them if you are diagnosed with a Critical Illness or to ensure they can maintain a general standard of living in the event of your premature death. An adviser will continue to review your protection policies on an annual basis to ensure that it is suited to your current circumstances and that you still have competitive protection in place in terms of premium and how comprehensive it is in the current market.
In the event of a claim for death or diagnosis or a critical illness, it is highly likely that this will be a stressful and upsetting time. The last thing you are going to want to be doing is paperwork and speaking to an insurance company via a call centre. If you used an adviser to arrange your protection they will step in if the need to claim arises and handle the whole process for you. This will give you face-to-face interaction rather than dealing with a call centre and lift a lot of pressure from you during this time.