18th September 2014
DO WE BEAT LAYA FOR LIFE INSURANCE? ABSOLAYLY!
The news this week that Laya Healthcare was going to provide a life insurance product for as little as €10 a month caused a bit of a stir in the media after first being reported by the Irish Independent. 'The cut-price move is expected to put further downward pressure on premiums' readers were told, 'and it could seriously shake-up the life insurance sector.'
There seemed to be a further incentive when their chief executive stated that no medical exam would be required for applicants and with discounts of 5-10% being offered, it seemed as if it could be too good to be true.
As ever, savvy consumers have to go beyond the headlines and delve deeper into what Ts & Cs come with these 'cut-price moves' and a scan through the Laya offer by our Low.ie team reveals some important points that need to be highlighted:
· The maximum cover that can be taken out is €200,000 and you cannot get cover beyond 69 where some life companies will go to age 90.
· The cover being offered is via a private, Luxembourg insurer – they could be financially very strong but they are not a household name with proven financial strength like the likes of Aviva, Friends First or Caledonian?
· The quotes given for each person are limited to a certain amount of cover. For example, the maximum life insurance I can get is €50,000 for sixteen years costing €20.79 a month (which is after the discount).
· In comparison, the cover with Low.ie is still 25% cheaper at €16.21 a month
· There is no conversion option.
· You have to have not smoked for two years to be classified as a non smoker whereas with all our life companies it's just 12 months.
· They make a play about having no medicals BUT you still have to answer some pretty tough medical questions which basically encapsulate all the typical questions you get on a normal life company application form PLUS consumers may not realise it but life insurance without a medical is the norm in our business with 9 out of 10 applications being accepted without one!
· There is no advice given on what's best for the consumer compared to us with our team of fully Qualified Financial Advisers, not to mention our guides and life insurance calculator!
· Plus it's worth bearing in mind that they're still charging 25% commissionper annum which is out of the ballpark compared to us and indeed far ahead of typical traditional brokers!
In fairness, any new competition that sees prices go lower and consumers get a better deal is to be welcomed. But the reality is that PR claims can be misleading and consumers need to get the best advice possible, shop around and make sure they have the best cover that suits them and their situation. And after all that, you'll find that Low.ie is still the cheapest around….and that's notwithstanding our pledge that we will beat any comparable quote!
As we like to say in the office, it's time to #beattheherd, so ignore the headline-grabbers and get the best insurance deals that really are out there.