It seems like insurance comparison websites are dominating the insurance industry within the
At first glance they all look as if they do the same thing, but with closer inspection you find that some do not offer true quote figures and it’s not until you have filled in the correct form (or system does it for you) that you get the final true price.
Other comparison sites are really just an old fashioned broker going on line and taking their middle man cut from the sale. There are also some insurance companies that state in no uncertain terms that they will not offer their insurance on a price comparison site and they are cheaper than them anyway.
The final conclusion is that you still need to a bit of shopping around online to ensure you really have got the best deal for you.
Life insurance
The examples above are based on searching for an annual car insurance policy, but what happens if you are considering a life insurance policy? Well of course it is sold as the same theory; these websites will compare all the competition to give you best deal.
But what is the best deal for life insurance? This is not like car insurance where you renew each year and if you did not like your last quote or policy you move it to another. Life insurance usually means for the period of your life or at least a considerable time. And there is of course terminal illness protection, critical illness protection, is the money paid after you die or when you are diagnosed and who receives the payout etc?
As you can see some serious decisions to be made here that can affect the livelihood of your remaining family.
So the conclusion here is, insurance comparison websites can be of benefit to you, but only after you know exactly what is right for you and your remaining family and this usually means professional financial advice.
Advice than can give you all the options, all the pitfalls and the terminology you need to make an informed decision. Everyone’s personal situation is different, so it is likely that everyone’s needs will differ when it come to life insurance.
The problem with getting professional advice is that it tends to be given by someone who wants your business i.e. a financial adviser, selling that very thing. Of course the FSA has strict rules over the advice they can give, so it will be in most cases the right advice. But it is still difficult to walk out of a financial adviser’s office, come back home and buy that very same policy on your computer, after he has given his time and knowledge.
This is why I don’t believe life insurance will ever sell in the values motor insurance does, or be a prime mover in a price comparison site. It is just too complicated to get right first time and should never be bought without clear advice first.
By mark flanighan
Published: 9/14/2007
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