All those insurers are the same right?

27 October 2020

The Netherlands has many different insurance companies. When we talk to our customers about choosing which insurance company to place the risk with, we often notice something in the spirit of “what are you worried about; all those insurers are the same.” That is really a misunderstanding! We are happy to explain this to you.

First the analysis

Before we advise our customers, we always get a clear picture of the specific needs of these customers. For example, someone with a substantial amount in the savings bank can choose to accept a higher deductible with a certain insurance policy to qualify for a lower premium. What if one has little or no savings? Or if savings should be maintained for another objective? In such cases a high deductible can be irresponsible. For example, with a mortgage there are many things where choices can be made in the product of the bank. Choices, which in our opinion are only made after a thorough analysis of your personal situation and wishes.

Then the choice for the insurer or bank

Do we have a good idea of ​​what requirements should be imposed on any product to be purchased? Then comes the choice from which institution you take the product of. It is too simple to just look at the premium charged by the various insurers. Or the differences in the interest rates that the different banks charge for a mortgage. There are many other things to look out for. That is exactly what we do for our clients!

Examples that are important in the choice

We are happy to give you some examples to show you that it really makes a difference which financial institution you choose.

Flat rate or variable premium

With a term life insurance, there are providers who work with a fixed premium over the entire life of the insurance. Other insurance companies start with a low premium but increase the premium slightly each year that the consumer ages. If you only look at the premium in the first year, then an insurer with a variable premium is the cheapest. But it is of course more sensible to look at the entire term. And then it may well be that the first insurer is in fact hundreds and maybe even thousands of euros cheaper.

Strict on medical acceptance

Except basic health insurance, insurance companies are free to accept or reject a consumer as an insured person. There are insurers who try to only accept those insured who have the smallest chance that they will make a claim under the policy. This can have consequences for someone with slightly worse health or with a so-called risky profession or hobby. Think of the latter, for example, roofers or skydiving. These people can only take out disability insurance or death insurance with a substantial mark-up on the normal premium. While another insurance company works more from a solidarity principle and therefore also accepts people with a limited health risk or with a risky profession or hobby on the normal conditions.

In case of damage, squeeze or handle generously

With non-life insurance there is really a big difference to see how the different insurance companies determine the amount of the damage. At one insurance company, we know as an expert that people look much more critically at all parts of the claimed damage. While the other society pays out quickly and generously.

Will the mortgage lender remain active in the Netherlands?

A mortgage is often taken out for a long period, for example for 30 years. You take out your mortgage with one of the foreign mortgage lenders operating in the Netherlands. When you take out the mortgage, you agree that the interest for the first 10 years is 1%. After those 10 years, the mortgage will remain in place, but the interest will be re-determined. But it may be that the relevant lender wants to phase out its activities in the Netherlands. And that is why the renewal requires a higher interest rate than the other banks do at that time. You may of course cancel the mortgage without penalty and close it again elsewhere. But you will then again have to deal with costs for advice, mediation and costs for the valuation and the notary. It is therefore important, when choosing a lender, to also investigate how likely it is that the relevant lender will remain active in the Netherlands for a longer period of time.

We are happy to advise you

Because we want to work with you to determine which solution best suits your situation and your wishes. And then look at which insurer or bank we can place that solution with. Not all available insurers or banks are the same. That is why we take great care in selecting business partners for our client’s benefit.

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