If I want to buy something, I go online. It’s easier, cheaper and the same product. And believe me I have experience in this area - an entire shoe cupboard which is testament to my savvy online shopping.
So if everyone takes it for granted that online is cheaper, couldn’t a company just put up a website with bright colours and ‘buy now’ buttons but, sell more expensive and inferior products. Of course they could!
Horrible as it sounds, this ‘marketing’ strategy is widely practiced by online insurance companies.
According to a recent study by Life Insurance Advisory Group, online insurance is more expensive across almost every age, range and level of cover. The study which used data from 11 retail advised insurance groups and 13 online offerings found that online generally cost from 25% to 45% more than advised retail life insurance.
For women, online insurance becomes the most expensive from age 45 where $700,000 of online life cover is 72% more expensive than retail advised insurance. Insane!
Even more insane when you think how much help we provide to our clients
· We help you calculate the level of cover needed
· We provide education regarding the insurance terms
· We compare multiple insurers across price and policy definitions
· We help you with the paperwork (which is a real pain in the butt)
· We arrange medicals
· We negotiate on your behalf if there are any loadings or exclusions
· Most importantly, we help you if you have a claim
The point of this article could not be clearer: Online insurance cover is both highly overpriced and poor value. You are much better off purchasing insurance through a retail adviser (like myself) whereby you can get the right cover at a reasonable price.
(If you have been duped by a flashy online insurance website, please get in touch and I will help you sort it out.)
On another note, potentially I could set up a website for online advice. I would base it on the model for online insurance – gorgeous pictures, all the icons would be shoes, there would be buy now buttons in every shade and of course the mark-ups would be amazing. I think I will call it www.fundmyjimmychoos.com (fund my Jimmy Choo’s) – only joking.
Warm Regards, Marisa
email@example.com or on 0416 538 227