Direct life insurance is targeted at a certain market – those who want to get things done when it suits them. Not having to make an appointment to see a financial advisor, let alone a doctor for blood tests and a medical appraisal, is a godsend for those who still want to protect their families regardless.
Each year CANSTAR researches and rates the direct life insurance offerings from financial institutions in Australia. This year we have compared 31 direct life insurance policies from 27 insurance companies. Our research covers 5 age groups and 20 common profiles detailing gender and smoking status of people within their 20s, 30s, 40s, early-50s and late-50s.
This year, as last year, CANSTAR is pleased to congratulate Insure Me Now on winning CANSTAR?s Outstanding Value – Direct Life Insurance Award. We caught up Insure Me Now to find out why buying direct is popular and what consumers should be thinking about.
Q: Why is life insurance so important? Do you think that some people can fall into an “it won?t happen to me” mindset?
A: For generations the ?she?ll be right? attitude has been a central part of the Australian psyche. For this reason it?s often not until something actually happens to a loved one that the importance of having adequate cover comes into play – by which time, sadly, it can be too late to do much about it. Things like the rent, mortgage repayments, school fees and other bills don?t stop.
Insurance is the simplest and most cost-effective way to protect your, and your families way of life against the financial burden that can result from your death, serious illness or injury. Whilst most working Australians have some life insurance cover through their superannuation, many do not have nearly enough to offset the permanent loss of a breadwinner?s income.
Q: What are the benefits for consumers in being able to buy life insurance directly?
A: People are busier than ever! There are a number of benefits in buying your life insurance directly, they include:
- No invasive medicals
- No blood tests
- No complicated forms
- Quick approval
- And most importantly, with our product it still provides comprehensive cover
Q: How can people determine the amount of life insurance they need? What are some key costs they should think about?
A: That?s a really good question, and trickier than many realise. A lot of people calculate the amount of life cover they require simply based on their debt levels at a particular point in time. That?s a good place to start, but there?s usually a lot more to consider. Take someone with a young family, for example. Even if they?re lucky enough to have their house already paid off, there are still all kinds of ongoing living expenses required to raise the family until the children are financially independent. Education costs alone can run into five if not six figures for each child. People sometimes forget that.
Q: Is buying direct becoming increasingly popular? Why do you think that is?
A: There?s clearly a big convenience factor in not having to fill out long and complicated forms or visit doctors for a raft of time-consuming and invasive medical tests. As I often say to customers, if you need a carton of milk and you live next door to a convenience store do you buy it? Or do you drive down the road to your grocery store?
Unlike perhaps ten years ago the bulk of Australians are now very digital savvy, with more and more people actually preferring to manage their financial and personal transactions online. To ensure maximum convenience, we quite intentionally developed an online system that provides the customer?s premium right upfront. We feel this is really important as it means we?re never wasting anyone?s time and always have full disclosure. In 95% of instances we can also give an immediate decision at the end of the application process so customers aren?t left waiting to know if they?re covered or not.
CANSTAR congratulates Insure Me Now on its win. Readers can download the full report here.