TAL launches new life comparison tool
TAL had announced a new consumer-focused life insurance product — a lifebroker comparison tool which it says is geared at helping customers make better informed decisions surrounding life insurance.
TAL general manager of Lifebroker, Alex Homer, said the tool allows consumers to assess life insurance policies by criteria other than cost, providing more meaningful information on such factors as a company's size, financial strength and claims experience.
Recognising that life insurance is a considered purchase, Homer said the tool allows users to customise their cover options and save their progress to be able to re-visit a comparison at a later time.
The tool also demonstrates the "finer details" of a product such as the number of conditions covered, sum insured levels and exclusions.
"The simple fact is that all life insurance policies are not the same. To compare them on cost alone, without other features being taken into account, unrealistically lumps them all in one basket — which can lead to unpleasant surprises when you need to call on your policy," Homer said.
Homer said the tool was developed in response to customer demand for greater transparency on policy features and benefits surrounding life insurance.
"While cost remains an important consideration, Lifebroker research shows that cost is no longer the number one reason for not having life insurance," Homer said.
"This represents a change from similar research over recent years and is an example of consumers' increasing understanding of the benefits of life insurance, beyond cost."
Since launching its online comparison app iQuote in 2011, Lifebroker has seen 44 per cent of users opt for a simple price comparison with 37 per cent choosing a detailed comparison of the features and benefits.
The remaining 19 per cent have switched between the simple and detailed options.
"Accurate and meaningful comparison of life insurance will help people make the right decisions about a crucial aspect of their financial wellbeing," Homer said.
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