a new type of life insurance broker is saving consumers 1000’s

Every day, thousands of people in the UK are protecting their loved ones by putting in place a life insurance policy. We all love a good deal and there are several ways to substantially cut the cost of your policy, including using a new breed of broker that cuts out the middle-man. These new kids on the block are known as discount brokers and can save you thousands of pounds over the life of a policy.
In order to understand how these savings are achieved its necessary to differentiate between an “Insurance company” and a “Broker”.
Its a little know fact, but all life insurance policies in the UK reside with just a handful of large insurance companies. Its the responsibility of these companies to pay out death benefits should the worst occur. In order to break even, the total expected future death benefits must be covered in premiums payable to them, giving a base line cost for a policy. Traditionally consumers used to buy directly from large life insurance companies such as Aviva, this however is the most expensive option. When you get a quote, a large profit margin will be added to the baseline cost, most people will therefore generally opt to use a broker.
A life insurance broker will supply you with comparative prices from all the major insurance companies. As your business is highly lucrative, insurance companies will offer the broker large commission payments for customers that are referred to them. Brokers are under no obligation to reveal their commission payments.
Discount brokers also scour the insurance market, thus operating in a similar fashion to their traditional counterparts. There is however an important difference; instead of pocketing the large commission payments they invest it back into the policy. This saving is then passed back to the consumer via cheaper monthly premiums.
They make their profit by charging a small flat fee between £25 -£35. Here lies the crucial difference, you get the same policy as you would by going direct or to a traditional broker, only cheaper.
The only drawback is, that as discount brokers are operating on razor thin profit margins it’s uneconomical for them to offer financial advice. They are therefor often labeled with the name exaction brokers. A savvy consumer should seek free advice with a traditional broker first, when they know exactly what type of insurance they require they should use a discount broker. This is no different to shopping around and trying on a pair of shoes you like on the high-street and then going home and buying them online for less.
If you are prepared to do the hard work and search for the best deal you can save up to £1000 by speaking to an advisor and finding out the best type of life insurance for your particular circumstances. They will explain the pros and cons for each type of cover and then explain their preferred option, if you are happy with their choice you can thank them for the quote and use it as your benchmark. Speak to some discount life insurance brokers and they will quote you for the same type of life insurance, but the premium cost will be lower. Simply choose the lowest price and you’ll have successfully saved yourself a few quid each month, which adds up to hundreds over the length of the policy.