Life insurance can seem confusing for those not in the business. Just like an insurance expert may get confused at a football match. Those not involved in life insurance don’t necessarily understand how premiums work or know the best way to get a good deal on your life insurance.
Premiums are locked from the start!
It’s a question of resources and administration. In an ideal world (for the insurance company), life insurance premiums would adjust monthly based on your fitness and health state, with the risk factors recalculating as you eat more and then go on a health kick. Instead, it is far easier to look at someone at the point they take out a policy, make the premiums right for that person, and leave the rest to chance.
How important is direct debit?
A Direct Debit means an instruction from a customer to their bank or insurers authorizing to collect varying amounts from their account. This is often used to make sure regular, safe and efficient payments of anything from household bills to insurance premiums
As the above definition suggests, one of the benefits of Direct Debits for both insurers and their customers is the fact that once the customer provides authorization, the insurer can manage the process. The insurer needs to inform the customer in advance about the Direct Debit payment amount and timing but once done, they can collect varying amounts and on varying collection dates as needed. This is far quicker and more convenient than waiting for the customer to send payments by cheque or cash – or to recall going online and making a payment. The insurer keeps control and can plan when funds arrive in their account and the customer has the peace of mind having known that they won’t miss a payment.
For customers, it is the Direct Debit Guarantee and the benefit that is most acknowledged. For insurers, the control is attractive but so is the cost-saving, because Direct Debit is a significantly cheaper way to collect money (than a cheque or cash). Whatever the most convincing benefit may be, therefore it is clear that Direct Debit is here to stay and is, in fact, a developing payment option.
We would recommend you to talk to one of our advisers for life insurance quotes.
Any quote that your adviser provides you with will take into account your circumstances, your medical history, as well as your budget!
Call 011-3733-4610 – Monday to Thursday from 11.00 to 19.00 and on Friday between 11.00 and 16.00