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Advisor protests ‘direct-to-consumer’ competition

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Life Health Professional | 19 Aug 2015, 08:15 AM Agree 0
A Toronto-area insurance advisor questions the sense in selling the products of the growing number of carriers now going the consumer-direct route with ‘overly simplified’ offerings
  • Peter | 19 Aug 2015, 01:48 PM Agree 0
    These "over simplified" guaranteed issue products are good for people with serious health conditions who would be declined otherwise.

    But there are thousands of very healthy consumers who do not know any better and do not know that they could purchase a superior life insurance policy for far less premiums and receive the advice of a knowledgeable advisor to discuss the pros and cons of the maze of available policies.

    These guaranteed direct-to-consumer policies are a highly profitable revenue source for these companies, especially when sold to healthy consumers. And yes, they are circumventing the advisor with the objective to get rid of the independent distribution channel over the next decade.

    I for one try my very best not to do any business with any insurance company who sells these policies directly to the consumer.
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