Cheap Insurance May Not Be The Best Option For You

Buy cheap insurance in haste and you may have a long time to repent at leisure, but make sure you understand the terms of your policy, writes Lesley Parker.

“The cost of life insurance has been falling, and it’s easier than ever to pick up the phone or go online to obtain this and other forms of personal cover. That’s good news for Australia’s underinsurance problem. But alarm bells are starting to ring about just how low premiums can safely go, and about the potential for people to be sold the wrong product.” Lesley Parker writes about the potential pitfalls of buying insurance directly rather than through and adviser or broker, as well as the importance of a regular review on your personal insurance. “Risk insurance adviser Roy Agranat, of Centric Wealth, says: ”If competition is only about price, the consumer can be one of the biggest losers.” That’s because insurers have to balance price and the risk they’re taking on in one way or another. If the price is low, one option is for the insurer to make it harder to claim by tightening definitions or excluding more life events from the policy.”

If you are uncertain of the definitions or pitfalls of your current direct insurance policy or you wish to speak to an adviser to review your insurance please contact us. To read the full article inculding a case study of Brian and Lynne Boggs who benefitted from having Trauma Insurance you can follow the link below

http://m.theage.com.au/money/planning/lifes-big-decisions-20121120-29n1j.html