Should you use a broker or buy life insurance direct?

Buying direct usually means taking out a policy from one insurer through its website or phone line. You see that insurer's products and prices, and you decide whether they suit you. Some people also buy on an execution-only basis through a comparison site, where you pick a policy from a list without anyone recommending one.

Buying through an advice broker means an adviser asks about your circumstances, compares policies from the insurers on their panel, and recommends one. The adviser then helps you apply and set the policy up. You still decide whether to go ahead.

Not normally. Commission is paid by the insurer, and the premium you pay is not increased because a broker arranged it. Many brokers, including CoverLife, charge no separate fee for protection advice, though it is worth checking with any firm you speak to.

That does not mean every price is identical everywhere. Insurers sometimes run offers, discounts or incentives that are only available through particular channels. If you have seen a price or offer elsewhere, it is worth asking whether it can be matched.

• •Comparing more than price: benefits, definitions and terms differ between insurers, and an adviser compares them alongside the premium across several insurers.
• •Knowing where to go: insurers take different views of the same medical condition, occupation or hobby. An adviser can steer your application towards insurers more likely to offer reasonable terms, although acceptance is never guaranteed.
• •Answering the questions accurately: application questions can be detailed. Getting them wrong, even by accident, can put a future claim at risk, so help with how to answer them fully matters.
• •Talking to underwriters first: for some cases, an adviser can discuss your circumstances with an insurer's underwriters before you apply, to get an indication of how they might view it.
• •Setting the policy up correctly: choosing the right amount, term and type of cover, and writing the policy in trust where appropriate so the payout can go to the people you intend.
• •Ongoing support: help if your circumstances change, periodic reviews, and help for your family if they ever need to make a claim, depending on the service the firm offers.

If you have a health condition, our guide to life insurance with a pre-existing condition explains how insurers approach it. Accurate answers also matter at claim time, which our guide to whether life insurance will pay out covers in more detail.

With advised cover, the firm recommends a policy based on what you tell it, and it is responsible for that recommendation being suitable for your needs. If you are unhappy with regulated advice, you can complain to the firm and, if the complaint is not resolved, you can usually refer it to the Financial Ombudsman Service.

With a non-advised or direct purchase, you choose the policy yourself. The insurer or website must still give you clear information and treat you fairly, but deciding whether the cover meets your needs is your responsibility.

A broker may not have access to every insurer in the market, and panels vary in size. CoverLife has access to a panel of 15 protection insurers, with availability varying by product and circumstances. You can see more about the life insurance providers we work with.

It is reasonable to ask any broker which insurers they use and how they are paid. A good adviser will be happy to tell you.

If you are not sure how much cover you need, our guide to how much life insurance you need is a good place to start, whichever route you take.

• •Do you give advice, or is this a non-advised service?
• •Which insurers do you compare for this type of cover?
• •How are you paid, and is there any fee for me to pay?
• •Will you compare policy terms and definitions, not just price?
• •Will you help me answer the application questions and set up a trust if it is appropriate?
• •What support do you offer after the policy starts, including if my family needs to claim?
• •Are you authorised and regulated by the Financial Conduct Authority?

If you would like to talk it through, call us or get in touch for a no-obligation conversation, or start a quote and we will pick it up from there. You are under no pressure to go ahead.