Life Insurance Online

mic200202

I was interested in the discussion about life insurance online and that Money Saving Expert was recommending a few companies that give up all their commissions in lieu of a set fee as best buys. As a full commission broker, I was curious about this, so did my own tests. Rather oddly, the quotes I was able to obtain were actually better that the Cavendish ones!! All with no commission sacrifice.The examples given on the MSE article give some more examples, all of which were easily beatable by me with no comms given up.Someone is having a laugh or what?

dunstonh

This is something that I and a few others have mentioned before. On like for like basis, many IFAs can come in cheaper than Cavendish. I guess you are a network member, like myself, and the terms the network have been able to arrange are better than those that Cavendish have.

Remember that different IFAs/Networks get different pricing. I know 2 IFAs with personal touch and when I have got comparative illustrations in the past (to compare against theirs) I have been able to beat them on both commission and pricing. Sometimes significantly (Clerical Medical bonds with AMCs at 0.15% p.a. cheaper as an explicit example but others would be commissions higher across the board, client prices lower etc).

sons_2

Spot on, I know I am biased in my opinion in this but I believe people are better off getting expert help in these matters as it can save them money.

mic200202

The obvious important thing here is that surely the best option (for a customer) is that they can obtain even better rates AND ADVICE using a independent broker. I think MSE needs to address this in articles and advice. I'm still amazed at these life quotes coming out as they did.

dunstonh

the cost of advice though is going to be more than the £25-£50 that Cavendish charge though (for just placing the policy). Problem is that the site values the product and not advice.

Ludders_2

I would love to see some evidence of a life insurance policy being more expensive from one of MSE's 'best buy' list when compared to a policy with full commission. Who will take up this challenge on a like for like basis?

Jeff Ludgate

dunstonh

I think the point being made is on nil commission terms not full commission terms. That said, I do think mic2002 has failed to take into account the cost of advice.

Yes, its easy for us to beat Cavendish and the like but I (and most IFAs) are not geared up to run a factory line of applications at £25 a go or whatever it is now. Its a completely different type of market and business model. So, it doesn't really matter if we can beat them like for like when you arent retailing on that same model.

payless

In actually think Mic was saying his quotes on Full commission were cheaper than a nil commisison option (ignoring cost of advice / fees).

There's the odd anomonly ( usually down to the portals , and which providers are listed - or sometimes cookies from portals carryimng over from one quote to another thro' different agencies ) but ludders is correct - a nil comm will be almost always be cheaper than full commision (ignoring cost of advice).

I often discount on full advice , but no way could I process at £25!! ( commision or fee)- but then I take repsonsbility for the advice surrounding the suitability of a policy and selecting the provider , guidance on completion of health questionnaries , provide all the paperwork printed, and supply SAEs

payless

Although ludders I'm sure your signature is in breach of the site rules.

koexelek

payless wrote: »

Although ludders I'm sure your signature is in breach of the site rules.

Might as well have a link :eek:

mic200202

Well, Ludders, I ran some quotes through comparing the examples on the MSE articles...ie Female 30NBD n/s 200k for 20 yrs mortgage term etc.Compared that to Cavendish online quotes, and I was still was able to get a cheaper premium,even with full commission. There was not the massive differecne I was expecting to see.

Like Dunstonh says, its down to the fact that different distribution channels will have different rates,comm terms etc.