Financial Services Online (est 2001) provides a free service, connecting people directly with specialist financial advice based on the location and specific requirements of each individual consumer.
(prHWY.com) August 29, 2012 - Palm Beech, Australia -- Queensland, Australia, 23rd August 2012./ Financial Services Online.
Many online insurance shoppers are being duped into purchasing income protection insurance policies that may be completely inappropriate to their circumstances, according to Financial Services Online CEO, Andrew Clark.
"Websites competing in the direct disability insurance and online income insurance quote comparison space are largely overlooking the fundamental differences in income insurance policies and how these differences could impact on the financial security of the person being insured. They are simply perpetuating the myth that income protection policies can be compared largely on price ... a strategy that leaves the customer completely uninformed of the critical differences in policy definitions that could ultimately determine their financial fate."
"Operators of these websites may well be licensed to give advice, but are appealing to consumers by offering quick, easy "no advice" solutions. They ask prospective customers to nominate their preferred benefit payment period, waiting period (policy excess) and the amount of monthly benefit they require ... and then proceed to present online price comparisons. This could easily mislead a consumer to believe that they are comparing apples with apples, leaving price as the determining factor in the decision-making process."
"They do NOT inform the client, for example, that what may appear to be subtle differences in such things as the way a policy defines the term 'disability' could mean the difference between whether they will receive an indexed income for the rest of their life, or leave them financially destitute. It's not so much the fact that there are 'good' and 'bad' policies, it's that consumers are often left to make uninformed decisions on something as vitally important as their financial security."
"It is completely unreasonable for a consumer to be led to conclude that, if income protection insurance quotes are based on similar benefit amounts payment periods and excesses, then they are fundamentally the same. There is an inherent danger in thinking that the most important criteria when comparing income protection insurance quotes is price when, in fact, it may lead to a product purchase that is completely inappropriate to the client needs."
"Some websites are also providing consumers with conflicting and inaccurate information.
"For example, in prompting potential customers to nominate a preferred benefit deferment (waiting) period on it's quote system, we found a number of prominent life and income insurance comparison websites stating that '... with a 30 day waiting period you would begin receiving payments after 31 days.' This is a dangerously misleading statement because, whilst an insured may well be eligible for benefits after 30 days of disability in the example, income insurance policies usually pay claim benefits in arrears (weekly, fortnightly or more usually monthly) following the waiting period. In the example given on the offending websites, a claimant is therefore more likely to receive the first payment after 60 days, certainly not on day 31. Of course most customers will only ever discover this serious anomaly when they have a claim and are relying on the money to pay bills."
"Income protection insurance is way too important to take lightly and should never be purchased on a 'no advice' price comparison basis."
Financial Services Online (est 2001) provides a free service, connecting people directly with specialist financial advice based on the location and specific requirements of each individual consumer across a range of financial products and services including life insurance, income protection, public liability, professional indemnity, health insurance, superannuation, home loans, car loans, unsecured personal loans, debt consolidation loans, credit repair and more.
For more information kindly visit :
http://www.financialservicesonline.com.au
Or
PO Box 1183, Palm Beach, Queensland, Australia, 4221
Contact: Andrew Clark, +61 419429754, andrew@financialservicesonline.com.au
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