Views on LifePolicies Direct please

civicwalker

Got a quote for fixed term life insurance with Critical Illness Cover (CIC) with Cavendish Online [with £35 fee] and sent it to LifePolicies Direct (who mysteriously knew of my interest) to get them to honor their "unique price promise - we guarantee to beat any quote"!
After being escalated up to director level, they now claim CIC is not included in the promise even though there is no reference to this specific exception in any documentation or on the website!

Will post reply to my eMail to them as and when they reply.

civicwalker

Aparently all of the printed/website literature is not being reviewed and they've of offered what appears to be a cheeper quote

jasonking

Hi, I am a Director of Life Policies Direct and thought it would be helpful to add my comments.

Life Policies Direct is a specialist protection broker. This means that we have access to most of the life insurance providers in the country and try to find the best deal for our clients. We are also able to give advice as to which type of policy is the best for you as well as which provider. We can access most of the UK providers, however there are some providers (such as Marks & Spencer, Virgin, Nationwide Life etc) who don’t wish to make their products available through brokers.

We have to adhere to FSA rules relating to the advice on and sale of our products, however we currently employ the services of a company called Sesame to help us meet this responsibility. In other words, Sesame inspects us and make sure we meet the FSA rules. Far from making us a small company, we employ over 50 staff and advise over 5,000 families each and every month over their protection requirements. We were founded in 1999 and use our size to negotiate the best possible deals from providers on behalf of our customers. We pride ourselves on our customer service...however I would say that wouldn't I.

We are partnered with Moneysupermarket.com and provide the quote engine that powers their on-line comparison system, this is why ‘SaverSarah’s’ application pack came from us. The reason we would have sent a different application than the one originally requested is because we are able to give advice and found the alternative provider would give a better deal – our aim is to make sure you get the best possible deal, hence our Price Promise. Moneysupermarket.com do sell leads via an auction process however we do not buy leads in this way from them. We leave that for smaller, less sophisticated brokers.

We don’t charge a fee for our services, rather we earn a commission for each plan we arrange. It does not cost you anything in terms of higher premiums/charges to use us rather than go direct to the provider and the product you get is exactly the same. The provider simply pays us a sum of money in return for us placing the case with them, a sum that they would otherwise keep for themselves. How much commission a provider will pay us is not a factor when making a recommendation as all providers broadly pay us the same.

Providers quotes vary on commission disclosure, some disclose on the quote, some in the post sale documentation. Unfortunately there is no FSA rule that says commission must be disclosed on quotes, just like for car and home insurance (have a look at your next car renewal quote to see what I mean).

Unlike say the motor or home insurance markets (where going direct to the insurance provider can mean large savings), brokers are usually able to offer the best deal on life insurance, but then I would also say that so its probably best check this out for yourself.

We have no partnering arrangements with Cavendish so I am also confused that anyone thinks they are filling in a Cavendish form and get a reply from us. We only respond to genuine enquiries and we don’t send unsolicited mail. As we are the engine behind many life insurance websites I must assume that ‘Tanith’ filled in an online form requesting a quote somewhere along the line from either our site or one of our partners as well as from Cavendish.

Most internet based life insurance distributors do not give any advice, we have a team of specialist advisers on the end of the phone, so if you have any questions or need any advice pick up the phone to us or your IFA. We are certain taking advice when buying life insurance will save you money long term, as your adviser will be able to identify a better solution for you, for example using a simple Trust to avoid IHT.

Buy your life insurance from wherever you like but make sure you take the trouble to take some expert advice from an adviser like us or an IFA at some stage as there are plenty of potential pitfalls.

SaverSarah_2

Cool! Thanks for explaining that Jason. My lack of understanding of the situation has meant that instead of taking action either way, we've just continued to pay for our overpriced Zurich plan (better the devil you know, and all that).

Your email has clarified a lot for me, and I may well now call to speak to one of your advisers, before filling in the application form I was sent months ago!

Thanks.

jasonking

Glad to help, just goes to show how confusing my industry can appear to the general public! Reading about experiences like yours helps me shape my service so thanks for that

SaverSarah_2

No problem. I worked in financial services for six years at the start of my career and I STILL get confused! Just got a requote from LPD this morning, looking to sign up tomorrow, so your posts paid off! The guy I spoke to was extremely helpful.

payless

I thought Inc***co provided the life engine for MoneySupermarket ( its their Key Facts that show up on the page) - appears no advice but rates shown were are full commission basis

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SaverSarah_2

Incresco? Sorry payless, what are you saying about commission? That LPD charge commission on their plans even though they're not giving advice? I don't want to misconstrue what you're saying.

Thanks!

payless

I don't know what LPD do , what I am saying is that when I just did a dummy life quote on Moneysupermarket it did not come up with LPD , rather another "sophisticated broker"

( from LPD - We leave that for smaller, less sophisticated brokers! )

The rates listed ( for my quote from them) where those at full commission , and the Key Facts stated No advice given.

If you not getting benefit and protection of advised sale - why pay full commission ? - in fact even with advice it may be possible to get reduced terms - especially if done by post ( as said , this statement applies to the Key facts / firm that I was linked thro to - -- you need to check your own! )


Whoever you use should issue you details on whether advice is being given or not! - its usually included in the initial Disclosure document

payless

jasonking wrote:

this is why ‘SaverSarah’s’ application pack came from us. The reason we would have sent a different application than the one originally requested is because we are able to give advice and found the alternative provider would give a better deal – our aim is to make sure you get the best possible deal, hence our Price Promise. .

so was it execution only / no advice, ( as Sarah you implied you thought you where arranging on no advice basis ) if so I can't see how a different policy application can be issued ( especially as its CIC, so policy terms do differ)

or was it advised .. if so would have assumed someone talked thro' the circumstances first- and advice provided as to the most suitable policy ( IMHO the right way to buy this type of policy !) and Sarah you should find you will be then be issued with a "suitability letter " often called "reason why letter or / Demands & Needs Statement - to explain the reasons this policy was recommended ... you questioned whether commission was being earned... well either ask them direct ( under FSA ICOB rules, there is no requirement to disclose commission to retail customers- although personally I can't see why anyone should not be willing to give an answer to a direct request) , or just ask another broker who should be able to do quotes based on full/ part /nil commission to compare