Direct life insurance on the rise

Directly marketed life insurance products seem to have picked up in popularity, with the sector posting an increase in sales of 27 per cent, according to Canstar Cannex research.

Head of wealth management at Canstar Cannex Stephen Mitchell said Australians like the idea of buying life insurance directly now more than ever, either through insurance companies, banks or health funds.

“At the same time, insurers are making insurance more accessible by covering pre-existing medical conditions that, in the past, would have knocked some consumers out of the running,” said Mitchell.

However, he warned that consumers needed to pay closer attention to details and make sure they were fully aware of what their policies did not cover.

“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,” Mitchell added.

Canstar Cannex has released its annual direct life insurance star ratings, which compared policies from 16 providers.

Its research revealed a three-way tie between Allianz’s Life Plan, Real Insurance’s Family Life Cover and EziCover Term from Zurich.

Mitchell said it is “obvious that all insurers have stepped up and in fact the gap between products is closing dramatically.”