In this article, we review Anorak life insurance intermediary. We describe the pros and cons of buying your personal insurance through Anorak and how it compares to the cheapest prices we could find. We also share an alternative intermediary who will pay up to £100 cashback when you buy your life insurance through them.
Who is Anorak?
Anorak is a trading name for Anorak Technologies Ltd frn: 843798 which is authorised and regulated by the Financial Conduct Authority (FCA). It is an independent online broker for personal insurance, available directly to consumers or through distribution channels such as Starling Bank, Snoop, Nutmeg, Trussle and Clearscore.
Anorak is a technology based solution for buying life insurance, critical illness and income protection and was founded in 2017 by David Vanek and Vincent Durnez as a 'one-stop place to learn, compare and buy cover' that is 'sufficient, suitable and affordable'.
What insurances can I buy with Anorak?
Anorak enables customers to buy life insurance, income protection and critical illness cover online or over the phone with an adviser. Anorak's online and telephone-based independent advice allows customers to create a personal profile through which it can provide insurance recommendations and tailored advice. It is authorised and regulated by the Financial Conduct Authority (FCA).
How does Anorak work?
Anorak uses a simple questionnaire that helps it determine how much life insurance and sickness insurance you may need. The online questionnaire will ask you about:
- Your income
- Mortgage / Rent
- Debt
- School / University Fees
- Outgoings
- Employer benefits such as death in service and sick pay
- Existing personal insurances
You can select between life insurance with or without sickness insurance. Once you have selected the parameters of your insurance, the tool will run a price comparison to calculate the monthly premium. It is worth noting that but the customer can easily change the amount, term and type of cover from the initial recommendations.
Anorak's open banking feature
You can opt to allow Anorak to access your banking data via open banking which can be useful if you need help in accessing your finances and require assistance in understanding how much life insurance and sickness insurance you may need.
Anorak policy options
Anorak offers personal insurance policy options including:
- Level term life insurance
- Decreasing term life insurance
- Increasing term life insurance
- Income protection insurance
- Critical illness cover
How much does Anorak's life insurance cost?
Anorak scans the whole market to provide life insurance, critical illness insurance and income protection prices from across a wide range of leading insurance companies.
Anorak life insurance price comparison for a 30 year-old
| Amount of cover | Cheapest Anorak monthly premium* | Cheapest monthly premium we could find* |
| £250,000 | £9.51 | £8.76 |
| £350,000 | £12.92 | £11.46 |
| £450,000 | £15.77 | £13.94 |
*prices based on a non-smoker in good health
Anorak life insurance price comparison for a 40 year-old
| Amount of cover | Cheapest Anorak monthly premium* | Cheapest monthly premium we could find* |
| £250,000 | £19.72 | £18.15 |
| £350,000 | £27.90 | £24.68 |
| £450,000 | £34.14 | £30.83 |
*prices based on a non-smoker in good health
Anorak customer reviews
Anorak scores 4.9 out of 5.0 stars on independent review site TrustPilot based on almost 150 reviews. Anorak is ranked 47th out of 251 companies in the 'Insurance agency' category on Trustpilot.
Anorak pros and cons
Pros
- Provides information and guidance that helps you choose the insurance that you need
- Competitive quotes from across major insurers
- Advisers can take you through your options and make recommendations over the phone
- There is no fee for advice as Anorak is paid a commission by the insurance company
Cons
- Anorak's prices are competitive but not the cheapest we could find
- Critical illness cover and whole of life insurance are not available to quote online
- Over 50s funeral plans are not available to buy through Anorak
- In some cases you will have to speak to an Anorak adviser to progress your purchase
Alternative to Anorak life insurance
We have vetted an alternative whole of market life and critical illness insurance specialist* where Money to the Masses readers will receive up to £100 cashback if they end up buying life insurance through them. The advisers provide tailored advice ensuring customers get a policy that matches their budget.
The advisers are highly skilled and use their expert advice to find you the right cover at the best price, especially if you have health concerns that need to be considered. They'll even recommend and arrange a trust so that you can nominate your beneficiaries and avoid inheritance tax and probate delays by doing so. Furthermore, you'll have access to a dedicated care team that supports customers with claims, amendments and much more. Simply complete this short form* to get a callback at a time that suits you.
Summary
Anorak's website does a good job by offering a simple way to buy life insurance online and even helps you to decide on the amount and type of cover you need. However, the advice can be limited by the questions that are asked. Most people's circumstances go beyond the material facts of their debts, income and outgoings.
Having worked in the personal insurance industry for over 20 years, I have spoken to thousands of people about their life insurance and illness insurance needs. People are unique due to their circumstances, priorities, concerns and what they want to spend. While one person may want their entire mortgage to be paid off if they die, another may be satisfied as long as some of it is paid off. These kinds of requirements are better discussed with a trained adviser who can provide a solution that does exactly what you need if you were to pass away or become ill at a price that you'll be happy to pay now and in the future.
Understanding the likelihood of illness and death helps to determine how much you should spend on each so that you're spending your budget in the most appropriate way. People in certain types of occupations may be more reliant on their physical capacity to work and may need insurance that will cover them for any kind of incapacity.
Although the Anorak robo-advice calculates how much of your financial commitments can be covered by your partner's income, it doesn't consider that your partner may not be able to continue to work if you die - you have to make these types of judgements yourself if you don't wish to speak to an adviser.
The online life insurance calculator is limited in what it can assess when providing a solution for you and Anorak diligently points this out at every stage, encouraging you to speak with an adviser to ensure that your circumstances are carefully considered.
If a link has an * beside it this means that it is an affiliated link. If you go via the link, Money to the Masses may receive a small fee which helps keep Money to the Masses free to use. This link can be used if you do not wish to help Money to the Masses and do not wish to qualify for the cashback referred to in the article
