Buying Life Insurance through a commission free broker is one of the easiest ways to get cheaper Life Insurance quotes. And with consumer sites like Which? and Money Saving Expert describing them as one of the best ways to buy Life Insurance, it’s no surprise that their popularity is on the rise. Interested? Read on for more information.
What is meant by commission and commission free?
When buying an insurance product nearly always there lies a hidden cost – commission. This is the money maker for brokers and comparison sites alike. Their ‘thank you’ to themselves for referring the sale. Not only does this push up premium prices, it can be misleading and can make the consumer think they’re getting a good deal.
Buying with a discount broker can help avoid this. They work on a zero commission basis meaning they sacrifice the commission on the sale of the policy. The benefit of buying commission-free is obvious – there’s no hidden costs so you know that all of your money is going straight towards the product. What’s more, this works out as a as far more affordable alternative. All the commission is reinvested back into the policy meaning you’ll receive lower over premiums overall when compared to a commission-based buy. Instead discount brokers charge a one-off fee, usually £20, to set-up your policy. This ensures that you’ll receive the best possible service and whilst it can seem a little unusual spending more money on that initial policy purchase, don’t worry, this original fee will soon be evened out by smaller premiums in the long term.
So just how much can you save?
So put this into perspective, here’s how buying commission free Life Insurance can help you save money. Using Best Price FS’s comparison service here’s a quote for Dave, a 33 year-old non-smoker who’s after individual, level term cover of £125,000 for 30 years.
If this policy was bought directly from the cheapest insurer charging commission, a guaranteed £125,000 payout would cost:
Per month: £8.90
Per annum: £106.80
Life of term: £3204
If the same was purchased with a discount broker it would cost:
Per month: £7.02 (£2.88 saved)
Per annum: £84.24 (£22.56 saved)
Life of term: £2527 (£677 saved)
The £2.88 saving may not seem that much, but when you consider the saving over the full term, the savings are significant. And better yet, it’s an easy switch to make. As a discount broker we, Best Price FS, offer the same selection of policy and providers as commission-based brokers, all for a lower price. We charge the lowest start-up fee in the UK too, so there’s little reason why you shouldn’t try us today.
To get your commission free Life Insurance quotes, visit Best Price FS today.
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