Life Insurance – Buy it through a bank or direct through an insurer and you’ll probably pay more!

Life Insurance – Buy it through a bank or direct through an insurer and you’ll probably pay more!

The Cheapest Life Insurance is all about offering you ways to save money on lots of different types of life insurance. Therefore, in today’s blog we take a look at how you can save by buying your policy from the right place.

When you buy a life insurance policy through your bank you could actually end up paying quite a bit more.

This is down to the fact that a lot of banks add their own ‘mark-up’ to the policy, so that they end up making money through your purchase.

Where you have a difference in price between the cheaper prices and the more expensive prices on life cover – this difference can add up over the term of the policy.  So if you’ve got a particularly high level of cover you may end up paying additional thousands in premiums over the years.

How to find the cheapest life insurance

There are predominantly three ways to buy life insurance such as critical illness insurance.  These are banks, brokers and of course direct through an insurance company.  Some insurers, such as Ageas don’t sell their life insurance direct, so for this you need to go to a bank or broker.

Why is it more expensive to buy through a bank?

Many banks have an agreement with an insurance company to sell policies to customers so effectively it’s a commission they earn each time they sell to one of their customers.  Equally, many banks have a single tie-in with an insurer, so you can only buy insurance through the provider the bank has the arrangement with.

What this means is that you will pay commission on top of the premium for the life insurance, which obviously means you will pay more each month but also over the life of the policy.

Why using a broker is a good idea

A broker not only has access to a range of insurers at once, but they also don’t add premiums to your monthly payments. This is because they receive a one-off commission in many cases for selling life insurance to someone.

A broker can also check multiple insurers at once so that you can find the cheapest life insurance in one place.  This approach also means you can compare those quotes and the level of cover more easily.

If you are looking for life insurance and would like to get a good deal by checking prices across a range of insurers, why not call The Cheapest Life Insurance today on 0800 6800 205 and see how we can help you avoid paying more?

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