Finding the best deals for mortgage life cover through insurance brokers
Gone are the days when you need to go directly to the insurance company or talk to an agent to get coverage. E-commerce has made it possible for you to buy some types of insurance by just a few taps on your keyboard.
What’s an execution only broker?
Also referred to as discount brokers, these are independent agents that simply sell the products – they don’t give you advice as to what would be ideal for your particular situation. Because there is no advice given, brokers have smaller overhead costs. Thus, you can enjoy bigger discounts.
How does the broker earn?
The broker gets a commission off the sale. He may be able to negotiate for lower premium rates and higher commission percentages due to the fact that they are dealing with a lot of policies.
Indeed, the Internet has opened up a lot of possibilities in the marketing of insurance and it has also enabled you to enjoy having the best prices by comparing mortgage life insurance quotes from various providers.
Comparing quotes can get you great savings
The minutes you spent looking at various quotes is well worth it. For instance, Company A may offer a cover at £32, Company B at £30 and Company C at £20. If these are monthly premiums, getting the cover from Company C instead of Company A will mean an annual savings of £144.
Brokers for your insurance needs
One way to get cheap policies is to avail of “execution only” services from brokers. This means that the broker is not obligated to give you any advice, just to sell the policy to you and charge you with a small fee.
But before you jump into an “execution only” service, remember to check:
The broker’s reputation. Get feedback from some of their past clients. Are they satisfied with the service provided? If there are any complaints, what are these about?
How premiums are set up. Are they guaranteed or are they reviewable? If they are reviewable, it means that the policy premiums are up for review at a designated time. This can be annually or every 5 years. If your health condition changes for the worse, this will mean higher premiums for the succeeding years. A guaranteed premium policy, although expensive, will mean that you pay the same premiums for the entire life of the policy.
The terms and conditions of the policy. The broker will not get into the details with you so you need to know the terms and conditions of the policy yourself. Check – what exactly does the policy cover?
Will it only pay upon your death? Or is the insurance amount payable if you get totally and permanently disabled?
How much is the policy covering? Do you need level or decreasing mortgage life cover?
How much premiums will I pay? For how long will I pay this?
How long is the cover for?
Are there other benefits included in the cover? Will it pay out if you become critically ill? There are a number of riders and automatic benefits provided, depending on the provider and what you opt for.
What instances will the policy refuse to pay out the claim? What are the exclusions? The usual exclusions are suicide or self-inflicted injury, participation in criminal activities, participation in war, civil commotion or riots, indulgence in a dangerous sport or hobby and flying other than as a passenger in a commercial flight. These exclusions will vary from policy to policy so it’s best to check what your policy excludes.
That you already know the right cover for you. Execution only brokers won’t provide you with this advice, which could come in handy if you are not that well-versed in the area of insurance. This website provides basic (and more!) information about the different mortgage life insurance policies and how they can cover a certain type of mortgage.
The premium rates for you. Quotes from the broker are usually based on a standard rating – if your health condition is worse, the premiums may go up.
An insurance broker may be a good source to buy your mortgage life insurance policy or your level term policy, as well as other insurance products. Brokers may be able to give you a good price, but you should also balance this with the kind of service you need and expect.
Latest update: 16.06.2013
Get your mortgage life insurance quote now, fill our form on the right.
Other sites: critical illness cover, lifeassurance.org.