I have recently received an offering from a company which will remain nameless in which it offered me some Life Insurance in a very brief application. The monthly premiums also included a 5% member discount.

The amounts offered were not huge most probably due to the very brief questionnaire that the application form had - the insurance company doesn't want to take on to much risk. If you tick yes to any of the very broad questions they will instantly need to contact your doctor and obtain further information.

The questionnaire was very brief with a lot less to fill out than a more comprehensive application that we require clients to fill out - but arguably non-disclosure of material facts relating to the applicants could be a lot more prevalent.

All the extra benefits that the attached letter mentioned like: World-wide cover, terminal illness benefit, early payout for funerals etc are just standard parts of any life insurance policy that we provide to clients so there is nothing new or different being offered.

So what were the premiums like - were they competitive?

For a 39 male non-smoker they were offering $245,325 for $33.20 per month we could offer the same level of life insurance for $20.37 or 40% cheaper than what this letter offered.

In fact when I quoted the life insurance amount with the actual life insurance company this letter put the business with I could still do it for $27.48 or almost 20% cheaper.

So it  pays to investigate when you get such offerings in the mail - what is the catch - we are able to offer much levels of cover for alot less plus you get the extra benefit of being able to speak to an adviser who can help you with a complete financial protection plan and point out holes in your existing cover. 

It is like going to a pharmacy to get cold medicine you are going to get a product plus advice - in this case we offer supermarket prices with pharmacy like advice.

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