We all know what a bank is – a bank is a bank. A bank is not an insurer.
So why it that more and more banks are offering life insurance cover & why should you think twice before you sign a policy?
With bank-based life insurance, more often than not all you need to do is fill in a few short forms and you’re covered. This is great if you’re after cover that’s quick and easy to set up. But this convenience usually has a downside.
In most cases bank-based life insurance provides limited cover and there is limited opportunity to get good advice & submit to more extensive underwriting.
Bank cover is not always cheaper. While pricing reflects how extensive underwriting is, and most bank cover is designed to be easy to apply for, this doesn't guarantee that bank cover is the most cost effective option. In fact a Consumer magazine survey has highlighted how every bank-based life cover policy could be bettered by a product sold by professional advisers.
In most cases bank-based life cover features additional exclusions.
Increasing cover can be complex. Not all banks make it easy to increase cover, but with adviser-provided cover you’re able to double your sum insured based on common family, work, & financial events – & you don’t need medical evidence. Choose cover with an adviser & it’s far more likely that the provider will make ongoing upgrades to your policy.
Remember, these are just the benefits associated with life cover. When it comes to income protection & trauma cover the differences are also extremely sharp! Your best bet is to talk to us here at PFG – we provide personalised, tailored insurance, & explain all the ins & outs, so you can make an informed decision!