Get value for money from your Life Insurance broker

Ensuring consumers get value for money when buying protection products is more important than ever now that cash is tight. Protection specialists LifeSearch reveal the top 5 signs that highlight the difference between the best and the rest.

1. Has a dedicated claims desk

Consumers may receive keen sales service when buying a protection policy, but will the broker be as thorough at the most important time - when a claim is made? Customers should ask how the broker will help them, or their family, process the claim. Most importantly, will they fight the case for you in the event that the insurer declines or delays your claim? Assuming the client has not been deliberately dishonest, a good protection broker will have a dedicated claims team that will fight for their client to see they get a payout.

2. Recommends Income Protection over ASU

Many web sellers push ASU policies instead of Income Protection IP, but the two couldn't be more dissimilar. IP is a far better product and will pay a regular salary from the time you claim until the end of the policy, if you can't return to work. This could be until the age of 70 and there is no limit to the number of times a claim can be put in. ASU will only give cover for a very short time period, usually 1 year, contains a number of exclusions and has a poor paid claims record. IP can include Unemployment Cover, which makes it the better choice in almost every case.

3. Records all underwriting and sales telephone calls

This is crucial for consumer protection. If a claim is declined by the insurer then the protection broker can offer the claimant a recording of the call the client made when applying to prove they revealed all the information that was required of them. Without the broker recording these calls, it will be up to the client to fight their corner alone with a giant insurer, which is something that no-one should have to do.

4. Offers hidden benefits

Does the protection broker offer any extra benefits when customers take out a policy with them? For example, LifeSearch offer the care and counselling services of Red Arc through LifeSearchCare for free to every client. So if they claim, not only do they get the right payout, they also get immediate support from professionals to help them deal with their health crisis. Consumers should ask if the company they buy their protection from will offer this vital service at a time of trauma.

5. Offers trust advice as part of setting up your policy

Clients should be offered the option to have their life policies written into trust when buying protection, which is free and easy to do. This is very important because it means the policy cannot be held back by the Inland Revenue while Inheritance Tax bills are paid on the estate of the deceased. If the protection seller doesn't mention it, the customer should make sure that they do.

Matt Morris, LifeSearch Senior Policy Adviser, says: "Cash is becoming tighter for everyone so it is crucial that the customer's time and money is well spent. One of the ways to do this when buying financial protection is to make sure you have picked a good company who is giving you value for money when buying protection. These five indicators are good examples of the kind of services that the best in the business will offer. All protection brokers are there to serve the consumer's interests so they should make sure they get what they are entitled to expect."

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2008-09-30 15:59:03 © Moneyextra.com