Life Insurance Comparison Websites: Five Questions a Consumer Should Ask

People looking for a life insurance policy should consider searching for packages online as part of their research. Most insurance companies are represented online and, with the right tools, they can be compared easily. Consumers also have access to information from regulatory authorities about what to look for in a life-insurance policy.

Here are five general questions that must be answered when looking for a life-insurance comparison website;

How many insurance companies does the website represent?

Most, if not all, insurance comparison websites use data from selected insurance companies. And not all insurance companies use comparison websites to promote their products. Consumers should be aware that a comparison website will not present all the options to the user. Consumers should seek quotes from different sites.

Consumers should also use websites that publish which insurance companies are represented.

Are the assumptions accurate?

Because of the complexity of long-term insurance such as life insurance, most comparison websites make assumptions about the users. These assumptions should be reviewed because not providing insurance companies with accurate information can void a policy. Read the page carefully and if there are assumptions made that are inaccurate tell the insurance company when contacted.

Is the comparison website giving enough information?

In most cases insurance comparison website forward your contact details to an insurance "broker". This is common for life-insurance comparisons where complicated and conditional insurance policies make any automated assessment difficult. Many of the websites offer customers advice on what to look for when considering insurance policies.

Is it registered with the appropriate authorities?

The Financial Services Authority monitors and regulates the insurance industry and has paid particular attention lately to insurance comparison websites. Not only is the FSA site a good resource for anyone looking to get insurance, but it also regulates the industry and reputable insurance websites carries FSA registration.

Most companies with FSA registration with promote the organisation. It gives the site some authority and the customers some assurance that the comparison website is legitimate.

Do quotes include all the policy information?

The FSA noted in a recent report that price on an insurance comparison website was more of an assessment priority than the policy's conditions. Although this is true for general-insurance policies, a small number of life-insurance comparison websites focus on providing the lowest price rather than the best policy. Consumers should spend time studying quotes and recommendations to ensure they are getting the right policy.