The interesting thing about having a blog is the questions you sometimes get asked. Take this one for instance:
Which company would you recommend for life insurance?
We don’t represent every life company in South Africa, so that’s a tough one 🙂 The correct answer is the life insurer which pays your claim, and in that department, we guess they’re all ‘much of the same’ really. All of them are strictly controlled by the FSCA so there’s little chance of them not having the money to pay your claim. None of them will avoid paying a claim unless you messed up when answering the underwriting questions.
But today’s post isn’t about whether your insurer pays claims or not; rather, it’s about ‘much of the same’. And ‘much of the same’ can be a good thing in this instance. Someone is taking ‘much of the same’ to a whole new level. We don’t know how they got this right (it’s a stroke of genius) but Comparisure got three traditional life insurance companies to agree to an online comparison system.
The three life insurance companies being some of SA’s heavy hitters:
- Old Mutual
When we say traditional life insurers, we mean life insurance companies who work through financial advisors and require full medical underwriting before accepting you as a client. This makes Comparisure an online financial advisor much the same as the person who pops around to your home.
But they aren’t popping around during supper time, are they?
If you’ve ever taken out life insurance face-to-face, then you know that your financial advisor needs to fire up their laptop, start up their software, and quote at each insurer separately. Most of them have their favourite insurance company where they place most of their business, so the question begs.
“Are they really going to compare apples with apples?”
It’s a tedious, drawn-out process seeing a financial advisor face-to-face. We not saying there isn’t a place for face-to-face financial advice, but we believe people are pressed for time and always have a nagging feeling that the person trying to sell them the product has their own agenda – Making the sale!
This is how Comparisure works:
On their homepage, there is a block on the top right called ‘compare’.
- Once you click on that block it asks for your name and email and acceptance of their terms and conditions.
- That redirects you to a screen asking gender, marital and smoker status as well as your date of birth
- From there we move to the next screen where it asks for education levels and income
- Then we move on to the amounts you want to compare across three areas – death cover, disability cover, and critical illness cover. You decide on how much you want, and it shows you how much it’s going to cost. Now you can either ask for help by clicking a button or you can proceed to the ‘quote me’ page
- The ‘quote me’ page asks for your cell phone number and an email address. A onetime pin (OTP) gets sent to that number which you then need to submit. After doing that you are redirected to a page showing the cost at all three insurers
That’s when this happens:
No surprise here. You get a phone call. But it’s a well-placed phone call looking to do a little extra fact-finding as well as run you through the next steps.
Comparisure obviously has an agreement with all three life insurance companies. That means they’re going to have to play fair with all three of them. In our case (just a test) Sanlam came out tops and the friendly consultant explained how the process works after the initial quick quote.
- Need to confirm a few details like your occupation and what % travel during the day. These extra few questions allow the consultant to provide you with fully detailed, official quotes from your provider of choice (the initial website quote is an accurate estimate)
- Need to find out if you wanted to add any other benefits. The quote can be adjusted.
- The quote is finalised and sent to you via email with a quote acceptance letter
“But hold on, what about the medicals?”
That’s a good question. The underwriting will be set by the insurer that you picked. In our instance, if we decided to go with Sanlam, they would contact us to set up a time to see a nurse or a doctor.
What we really liked?
There was absolutely no pressure to go ahead. So here we were getting quotes online, which traditionally, you could only get from commission-driven financial advisors. As mentioned above, advisors often have their favourite life insurance company and will try to promote them. If Comparisure fed all their business to one life insurance company, then I’m sure the other two would kick up a fuss or pull out.
What was nice is that we could see for ourselves how much three of the bigger names in the industry would each charge for exactly the same benefits.
Look, the bigger the life insurance company, the better. Sanlam is 100 years old while Old Mutual is 176 years old. Momentum is the baby on the block with 52 years of experience. If you’re wanting quotations for life insurance from companies with long track records, then look no further.
Comparisure has made it easy by cutting out the dreaded evening appointment and making sure your quotes are ‘much of the same’.
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