My Brokers Joke with a Jab!!

FTB83

I have had the exact same situation:

We have just got our mortgage through an independent broker, but he is tied to L&G for insurance. The quote for joint policy life assurance and critical illness cover at a guaranteed premium for decreasing level cover was about £50 (we are both in our early twenties with excellent health apart from my asthma, which is under control). I've shopped around and currently have an application with AXA for the same thing but for £34. Is this another 'too big' a drop to be good? Is AXA reputable or is there something I need to look out for? (I got this policy through moneysupermarket.com).

Thanks,

FTB83

dunstonh

We have just got our mortgage through an independent broker, but he is tied to L&G for insurance.

You cannot be indepedent and tied to one company in the same class of business. My guess is that he was whole of market on mortgages but tied for insurance. Using the term independent in this case is, in my opinion, dodgy and easily open to abuse but the FSA allow it as mortgage classification and general insurance classification are two different things.

Is AXA reputable or is there something I need to look out for? (I got this policy through moneysupermarket.com).

Personally, I find AXA are rarely the cheapest provider (on anything). I have used them only twice in the last 3 years and that was only because they were one of only 3 companies willing to take 2 individuals on board with certain requirements.

FTB83

dunstonh wrote:

You cannot be indepedent and tied to one company in the same class of business. My guess is that he was whole of market on mortgages but tied for insurance. Using the term independent in this case is, in my opinion, dodgy and easily open to abuse but the FSA allow it as mortgage classification and general insurance classification are two different things.

Ah, sorry, not the best with terms but will try to remember the difference!

dunstonh wrote:

Personally, I find AXA are rarely the cheapest provider (on anything). I have used them only twice in the last 3 years and that was only because they were one of only 3 companies willing to take 2 individuals on board with certain requirements.

Do you think I have missed something somewhere along the line? I am not the best with understanding and comparing documents , but if this sounds too good to be true, let me know what I should be looking for and I'll see what I can find. Also, I've heard car insurance companies target specific groups of people for a period of time by offering favourable rates, do you life assurance companies do the same and this is why AXA rate is good?

dunstonh

life assurance companies do quote differently with different age groups. Company "A" could be cheap with 20 year olds and company "B" the most expensive but reversed with 40 year olds.

That said, AXA just dont seem to come up tops in any age group unless you want something non-standard or want multi-benefit packaging.

The quote portals IFAs or independent protection advisers use are not available to the public as you need FSA authorisation. Websites with quote portals show a limited selection of providers and options to keep things simple. Some providers do not allow their products to be sold on these portals.