More Australians are turning to non-advice, direct life insurance products, as the DIY insurance sector offers more attractive customer solutions, according to research firm CANSTAR CANNEX (Canstar).<\/p>\n
<\/p>\n
In announcing its 2010 Direct Life Insurance Star Ratings Awards, Canstar’s Head of Wealth Management, Stephen Mitchell<\/strong>, made the telling observation that life companies involved in the direct insurance market are making their insurance offers more accessible by covering pre-existing medical conditions that, in the past, would have meant less customers could qualify for these minimal underwriting products:<\/p>\n “It means that consumers who may once have been refused life insurance are now in with a chance in many cases and this is making direct life insurance more appealing across the board,” said Mr Mitchell.<\/p>\n Canstar cites a number of advantages to the consumer in taking out direct life insurance:<\/p>\n But while no involvement by a financial planner is listed as a benefit to the consumer in following the direct life insurance path, Canstar also highlights the trade-off to consumers of not seeking advice:<\/p>\n ‘The trade-off is that you don’t have the guidance of a financial planner who understands what is covered and what is not covered in all the different policies and can steer you towards the one that best meets your needs.’<\/em><\/p>\n Because of the lack of adviser input,\u00a0Canstar says the most important point for consumers is to be fully aware of what\u00a0they are not covered for in the direct insurance policy:<\/p>\n “You’ve got to remember that you are not being guided by a licensed financial planner and so you have to compensate by looking very carefully at the exclusions before you sign up,” said Mr Mitchell.<\/p>\n Canstar reports there are now sixteen companies offering direct life insurance products and that there was a three-way tie for\u00a0its major award.\u00a0 The joint 2010 winners\u00a0are Allianz, Zurich and real Insurance, each of whom offered value and quality across their rates and features.<\/p>\n Scoring was weighted 55% on pricing and 45% for product features across\u00a0four different age groups from young adults to empty nesters.<\/p>\n\n