Focusing purely on size when evaluating the companies from which you request life insurance quotes would almost certainly turn out to be a mistake. However, as the pros and cons associated with small and large insurers apply to almost all market participants equally, it’s definitely worth considering size at some point in your evaluations. Below, we explore the most important pros and cons associated with the minnows and behemoths of the insurance world.
The Importance of Size When Evaluating Life Insurance Quotes
If you’re wondering whether a large or small concern will turn out to be the best choice when evaluating life insurance quotes in Australia, we can tell you that it really depends on your priorities. There are pros and cons associated with each choice.
Large Insurance Companies
Among the most obvious advantages of dealing with a large insurer when soliciting life insurance quotes are the following:
- Wider Selection – Larger insurers normally have a wider range of products and product options from which to choose.
- Stability – Larger organisations are usually more financially stable, enabling them to satisfy big claims without issue.
- Better Customer Service – Large insurers are often in a position to offer a higher standard of customer service.
The most important disadvantages to consider when evaluating life insurance quotes from larger insurers include:
- Impersonal Service – A less personalised service and longer wait times when calling for assistance can be expected in some cases.
- A Less Flexible Approach – When negotiating terms and conditions with larger concerns, a less flexible approach is often encountered.
Now, let’s consider the pros and cons associated with soliciting life insurance quotes from smaller insurers.
Small Insurers
Smaller organisations offer several potential advantages to people seeking competitive life insurance quotes:
- Tailored Services – Smaller insurers can provide a more personalised service. They are also more likely to be local, making face-to-face meetings a distinct possibility.
- Flexible Terms – There is often the possibility of negotiating custom terms and conditions when dealing with smaller insurers.
Among the potential disadvantages of soliciting quotes from smaller insurers are the following:
- Smaller Range – If you decide to request life insurance quotes from a local insurer rather than a larger organisation with a national presence, you may find that you have a more limited range of products from which to choose.
- Less Secure – Smaller insurers are more vulnerable to major financial shocks. A run of large claims could prove devastating to a smaller concern with access to fewer resources.
- Limited Customer Service – Smaller companies are less likely to offer out-of-hours services, which can make the claims process somewhat more arduous.
Some of these disadvantages may be more important to you than others, depending on your priorities and circumstances.
Making Your Choice
The best way to determine whether a large or small insurer is the best option for you is to consider the importance of the above-mentioned pros and cons from your perspective. Having weighed each factor carefully, you will be able to make an informed decision.
