Cavendish Online - Income Protection (PHI?)

danny_b_3

Assurant's recent price hike has prompted me to reorganise my insurance policies (something I was meaning to do anyway) and I believe that a PHI policy is the best option for me.

I've read on here that PHI isn't widely available online but have noticed that cavendish online appear to offer it (perhaps this is a new addition?). Has anyone tried them for PHI and if so what are they like (eg how broadly do they cover the market?)?

dunstonh

Cavendish offer a limited panel of products for their various execution only options. They use the webline quote portal so you are only getting providers that offer PHI via webline. Which is only around 5 providers. The problem is that many of the providers in this area do not make their products available to quote portals.

So, if you dont mind a limited panel then its fine. If you want whole of market then its not.

danny_b_3

dunstonh wrote: »

Cavendish offer a limited panel of products for their various execution only options. They use the webline quote portal so you are only getting providers that offer PHI via webline. Which is only around 5 providers. The problem is that many of the providers in this area do not make their products available to quote portals.

So, if you dont mind a limited panel then its fine. If you want whole of market then its not.

Thanks for the reply - I suspected their was only a limit number of providers but wasn't sure if that was just down to my particular requirements.

I was planning on finding a local IFA and your answer has emphasised that that is probably the correct route for me (I'd certainly like to get whole of market in an ideal world)

(In the meantime, I'll have a play with Cavendish's system first to get an idea of ballpark figures)

charlotte24

Hi

I have been using Cavendish' quote calculator to get quotes on Income protection insurances.

They gave me a competitive quote with Scottish Provident. When I completed the forms and send them away Scottish Provident then increased the quote by 20%.

There have not been any additional risk criteria added on the application form nor any medicals or report have been done to possible identify additional risks to the insurer.
The risk assessment was done based on the same details I have put in the Cavendish' calculator.

Unfortunately I have paid Cavendish already their fee.

I then spent then two hours talking to Cavendish and Scottish Provident to find out why their two calculations differ so much although they have been based on the same information.
In the end they were accusing each others input in the calculator what caused the discrepancy.

When I was asking for a full refund from Cavendish I was told they only could refund me half of the fee as this is their policy although they admitted that there was a problem with the calculator (but in their eyes caused by incorrect data feed by Scottish Provident).:mad:

dunstonh

There have not been any additional risk criteria added on the application form nor any medicals or report have been done to possible identify additional risks to the insurer.
The risk assessment was done based on the same details I have put in the Cavendish' calculator.

So, what you are saying is that you had a clean application? (as in no medical issues, class 1 or 2 occupation and not overweight or drink too much)

I then spent then two hours talking to Cavendish and Scottish Provident to find out why their two calculations differ so much although they have been based on the same information.

I think you have misunderstood. Initial quotes are based on clean applications. If you declare any issues or outside height/weight ratios then underwriting may choose to impose special terms and increase premiums. The initial quote is not guaranteed. So, Cavendish would initially quote on one thing. Scot Prov would offer acceptance terms on what you have completed on the application.

When I was asking for a full refund from Cavendish I was told they only could refund me half of the fee as this is their policy although they admitted that there was a problem with the calculator (but in their eyes caused by incorrect data feed by Scottish Provident).

Thats the risk you take when you use a fee based service. Their terms are quite clear and they do issue warnings about difference in price that can occur.