Is buying insurance from agent more expensive than signing the same one online? Realised the quote by agent is higher than signing online for same insurance.

Some insurance plans are better to buy with agent~ like hospital etc, otherwise you gonna have a big headache on claiming 🌚 time is money

Hi anon,

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The quotation engine for an insurer is exactly the same regardless of who you speak to, provided that you are running the same parameters on the same scope of coverage on the same plan.

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So the question is, what plan were you getting? You can only compare like for like.

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As an example:

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A DPI (Direct Purchase Insurance) Term insurance for $400K D/TPD will be cheaper than a term insurance quoted from an advisor for $400K D/TPD because they AREN'T the same plan, although they MAY SEEM to be covering the same thing.

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A lot of people don't know this, but DPI term insurance does not cover TPD via the definition of the inability to perform 3 or more of the Activities of Daily Living before age 65. I am guessing that you likely don't either. Let me know if I am wrong.

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While the chance is low, it can still occur. Thus a stand alone term plan is already different in scope of cover and the cost of insurance on the ADLs has to be factored in. Pretty much all advisor quoted term plans covering D/TPD will cover TPD from ADLs.

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That already makes the plan fundamentally different, even if it is just a small difference. So how are you going to compare fairly? Even if we strip distribution costs (commissions, costs for the insurer to pay their support staff, etc) from the plan, you aren't looking at a like-for-like scope of coverage.

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Unless you don't care about TPD payouts from being unable to do ADLs, then in which case, go for the cheapest, which is likely a DPI.

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Keep that in mind the next time a plan seems more expensive to you. There is always a reason why.