Benefits of Using Mortgage Protection Insurance Brokers

It is now very common for mortgage protection insurance to be bought online. Media advertisements have encouraged millions of people to compare insurance rates from competing insurers online and then buy those policies online. Although online insurance purchases are becoming very popular there are still definite benefits to using a broker for mortgage protection products.

Impartial Advice

One of the big issues with buying insurance online is that most individuals are not insurance experts and mistakes are frequently made. There is very little point in paying premiums each month for a policy that is not appropriate. A definite advantage of using a mortgage protection broker is that they can provide impartial advice to ensure that individuals get the most appropriate cover.

Insurance brokers are skilled in listening to an individual’s situation and making appropriate recommendations based on the information provided. For example, it is very common for individuals to purchase level term life insurance to cover a principal repayment mortgage or decreasing term insurance to cover an interest only mortgage. Not only can this lead to more expensive cover being purchased unnecessarily but it can also lead to inappropriate cover being taken out more fundamentally. These mistakes are basic and would never have happened if these individuals had spoken to a broker.

Another big issue with buying policies online is that most people do not know what to expect in terms of good policy coverage. Unfortunately some insurers have been stripping out cover in their online policies simply to quote a cheaper price. Insurance brokers know the strengths and weaknesses of the policies they broker and can therefore recommend reputable policies with sufficient cover.

Price Comparison

Independent insurance brokers are not tied to any particular insurer and can therefore provide price comparisons from the whole of the insurance market. Furthermore, insurance brokers often have access to the same rates offered by online websites, which is not surprising given that most policies sold online are via brokers. This combined with impartial advice means that individuals get the most appropriate policy at the most competitive rates by using a mortgage protection broker.

Correct Application Disclosure

Most insurance brokers will complete the application form with their clients as a standard part of their service. Not only does this make the application process more convenient but more importantly it helps with application disclosure. Everyone should be aware that failure to disclose important details can void their insurance policy. Brokers should always make their clients aware of this and given that they have a great deal of experience completing applications the chances of information being missed is significantly reduced. Furthermore, a number of brokers have a telephone underwriting process set up directly with insurers. This means that the insurer takes control of medical and lifestyle questions of the application form and therefore practically nullifies any risk of non-disclosure / application inaccuracy. Naturally, telephone underwriting also makes the application process far easier and more convenient.

In summary, using a mortgage protection insurance broker can help to ensure that the correct policy is purchased, the policy is of a high standard, the premiums charged are competitive and the application process is more accurate and convenient.