Consumers Could Save Cash by Re-Arranging their Life Insurance with a Discount Broker

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Money-Minder.com says Brits could be paying up to 69% more for insurance bought from banks and financial advisers. As consumers try to save cash in the wake of the emergency budget, life insurance and protection comparison service Money-minder.com suggest Brits could save thousands by re-arranging their critical illness and life insurance with a discount broker.

London, UK, August 04, 2010 (PressReleasePoint) -- As consumers try to save cash in the wake of the emergency budget, life insurance and protection comparison service Money-minder.com suggest Brits could save thousands by re-arranging their critical illness and life insurance with a discount broker.

Online discount brokers are a relatively new concept in the UK and anyone who bought their life insurance or critical illness policy through their bank or a commission based financial adviser or mortgage broker they may well be able to get a much lower premium for exactly the same cover simply by rearranging their policy with a discount broker.

Where people arrange their life insurance or protection policies through a bank or financial adviser the customer wouldn’t usually pay a fee. However, the salesperson or their employer will generally receive a commission. To pay for this commission the insurers increase the premium so that effectively the customer pays for that commission across the entire term of the policy. Discount brokers charge a low fixed administration fee in return for passing the commission back to the customer in the form of considerably lower premiums.

Ray Black, founder of Money-Minder.com said: “Unlike with car insurance, consumers don’t regularly review their life insurance and protection but they should seriously consider comparing the cost of what they have now compared to rearranging their insurance with a discount broker. Over 15 or 20 years the savings could be huge.”

For example, a 35 year old male choosing to take £200,000 worth of level term life insurance through Money-minder.com for 20 years with Legal and General could pay as little as £9.81 per month. Where as the same man could pay as much as £16.56 per month by taking face to face advice and a policy with Bupa. The Bupa premium is 69% higher meaning the customer could pay an additional £1585.00 over the term of the policy.

For critical illness cover, where the premiums are generally higher, the savings could be even bigger. For example, a 35 year old male taking out £200,000 worth of life insurance with critical illness cover through Money-minder.com for 20 years with Legal and General could pay from £43.34 per month. Where as the same man could pay £70.78 per month by taking face to face advice and a policy with AXA. In this instance the saving over the 20 year term would be £6,550.00.

Ray Black continued, “What a lot of people don’t realise is that even though they may have taken out a life insurance policy a few years ago they could be paying for the sales commission for the entire term of the policy. Potentially hundreds of thousands of UK consumers may be able to collectively save millions of pounds by rearranging their life insurance with a discount broker who charges an administration fee rather than taking a commission. If you know the cover you want, if you’re not too much older and your health and lifestyle hasn’t drastically changed since you took out your original policy, there’s a good chance you could get a lower premium by comparing insurers and rearranging your cover with a discount broker.”

Money-minder.com offers a few additional words of advice to those looking to switch and save cash.

•If your health has deteriorated since you took out your original policy or you have taken up a dangerous sport or occupation you may find that your new premium will be higher even with a discount broker but it’s still worth checking, you still could be saving.
•Don’t cancel the old policy until you know the new one is up and running
•Make sure the new plan offers the same level of cover with at least the same benefits as your old plan.

For further information please contact: Jason Wyer-Smith at 42 PR on 07824 818242, Email: jason@42pr.com
Ray Black at Money-Minder.com 01529 300300, Email: ray@money-minder.com

Notes to Editors:
To link to our site please use: http://www.money-minder.com
Quotes generated on the 18th of June 2010 using www.money-minder.com

Money-Minder.com was founded and created by Ray Black, Dip PFS, an Independent Financial Adviser. Money-Minder.com is online personal finance website that incorporates an exclusive and unique interactive comparison service providing free genuinely online quotes and is full of useful information to help customers choose the right cover and product to suit their needs.

The site currently provides comparisons on life and protection products - term assurance, critical illness, mortgage protection and income protection. The site’s ‘Finance Navigators’ help customers to make their own informed choices and decisions but Money-Minder also provides easy access to highly qualified independent financial advisers (IFAs) if required.

Money-Minder.com is authorised and regulated by the Financial Services Authority (FSA)
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