Tuesday, September 10 12:21:55
Consumers could save anywhere from E400 to E20,000+ over the term of their life assurance or mortgage protection policy by deciding to purchase life cover from a financial broker as opposed to a bank.
This is according to a recent market study carried out by Caledonian Life, in which significant price variations were uncovered between protection policies purchased from banks, in comparison to those available from brokers.
The reason for the availability of better prices via a financial broker, is because they have access to all the life company providers products and prices, rather than just one provider which is generally the case for banks.
Loyalty to a local bank or more likely a bank manager was once the norm in the Ireland of days gone by, and it wasn't uncommon to go to that same bank for all things financial.
The Caledonian Life study has revealed that in actuality, by going through a Bank for financial protection products such as Life assurance or Mortgage Protection cover, could cost consumers as much as E20,000 extra over the term of their policy.
A spokesperson for Caledonian Life explained, "People are sometimes reluctant to shop around for their financial products. This is because they may feel a bit intimidated about a sector and products that they are unfamiliar with, or are not aware that they can move to a different provider if they find a better deal".
The spokesperson continued by saying that peoples minds do tend to change once the issue is brought to their attention, "particularly at the moment, more and more people are willing to break the mould and look elsewhere for better value".
The spokesperson was also quick to dispel fears associated with a cheaper price, "a lower price does not in any way signify an inferior product. They provide exactly the same level of Protection, just at a cheaper price."