New research released has shown life insurance policies being sold directly to consumers are gaining favour with individuals across the country.
The latest Canstar Cannex Direct Life Insurance Star Ratings process revealed sales for this sector have increased y 27 per cent over the past year.
“More than ever, Australians seem to like the idea of buying life insurance direct, either through insurance companies, their bank or their health fund,” Canstar Cannex head of wealth management Stephen Mitchell said.
The ratings house has attributed some of the increase in popularity of these products as a result of a desire of people to protect their assets during the recent economic downturn.
At the same time Canstar acknowledged the insurers offering these policies had made it easier to take out life cover by including pre-existing medical conditions.
“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,” Mitchell said.
As a result of the Canstar study three insurance companies were adjudged as offering the most outstanding value in the market.
“Allianz, Real Insurance and Zurich could not be separated which is a true indication of just how competitive the industry is in this country,” Mitchell said.
Allianz retained it’s top billing from last year but Mitchell nominated Real Insurance as the firm that surprised Canstar with its quality.
“We found Real Insurance’s Family Life Cover scored highly on features such as policy and general coverage terms, as well as eligibility. A reasonable premium cost adds to the product’s overall appeal,” he said.
The ratings house examined 16 insurance companies in total and the assessment was made using 16 different consumer profiles.
