What to know when buying direct

Your guide to buying insurance direct

Posted  March 19, 2013

Buying insurance directly from an insurance company has become a way of life for many South Africans. Whether you are insuring your caravan, your handbag or even your life it just takes one call to buy the cover you need. If you are planning on buying cover directly from a provider then read on for our guide to flying solo.

Buying direct means you buy your insurance directly from an insurance company without making use of the services of a broker. You can source quotes and buy your cover via the provider’s call centre or in some cases on their website.

For busy consumers buying direct spells convenience. Because insurance companies make their services available online or via a call centre you can get the quotes you need or purchase cover at a time that suits you. On the couch on a Saturday morning or grabbing a free moment during your lunch break you are in business! There is no need to find a broker, schedule a meeting, and battle the traffic… The couch sounds a whole lot better, right?

For those looking to buy cover direct without the guidance of a broker here are a few words of advice:

  • Be completely honest when sourcing a quote or purchasing cover. If a provider finds out that you withheld information they might well reject claims or reduce the pay-out
  • Do your homework and make sure that you purchase your cover from a reputable company. All insurance companies in South Africa must be registered with the Financial Services Board. You can contact them on 0800 110 443 to check if your provider is registered
  • Read your policy documents carefully and ask your provider if you have any questions
  • If you are buying disability insurance, life insurance or dread disease cover be sure to review your policies regularly to make sure that your benefit amount is keeping pace with changes in your life, for example marriage or the birth of a child

Insurance is an essential part of your personal financial planning. Now more than ever there can be no excuse for not investing in the cover you need. Buy life cover today from 1Life.

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