Why you will get affordable life insurance online
The life insurance game is a very cutthroat industry but is also a very lucrative one. Companies offer fairly good commissions to those that sell their products and this cost is passed on to the end consumer – you. Of course, if you want to save some cash, getting your life insurance online is a valuable way to go about it. What you need to remember is that broker’s fees, whether online or in person, are negotiable. The broker does also need to make a living and pay their overheads.
Basically, being an insurance broker is a business just like any other. It is useful to think of it this way when you are considering where to get your insurance. People tend to be wary of getting life insurance over the internet because they feel that the better rates on offer are some indication that the policies are somehow worth less. It is a typically South African reaction to mistrust the better rates.
The reason that life insurance offered by brokers over the internet is usually a lot more affordable is simple. Setting up a business online is a lot simpler and less expensive than running a traditional shop-front. Online brokers simply do not have the same kinds of overheads that traditional brokers do. There is no need for an actual office – the broker can work from home and there is consequently less need for staff. Generally it is a lot cheaper to run a home office than it is to run a traditional office.
In addition to this, consider the exposure that the online broker gets as opposed to the traditional broker. A lot of the application processes can be automated meaning that the online broker can be open twenty four hours a day, seven days a week. Your traditional broker simply does not have this kind of capacity. In addition, the online broker is not just limited to clients in his or her immediate vicinity but can quite easily serve clients all over the country – all the people have to do is point and click. Because of the increased volume of clients that the online broker is able to deal with, they are able to offer more competitive rates – after all, if you see ten clients a day and have to pay R100 rent, you need to keep your rates up. If you “see” 25 clients a day and don’t have to pay any rent, you can allow for a smaller profit margin.
Whilst most of us were taught by our parents to view the less expensive options with suspicion – whose mother did not say, “There is a reason it is so cheap.” – in the case of insurance that is being sold online, there are some very valid reasons why it is less expensive. At the end of the day, it would be more suspicious if it was not less expensive. This is one of those instances where we can happily accept that we are going to save money and give our stretched salaries a bit of a rest.