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Cavendish Online - Life and Critiical cover - Same amount?

Cavendish Online - Life and Critiical cover - Same amount?

Is this one of the major disadvantages of using an execution only broker and not an IFA?

They have the option of taking out life insurance and critical cover on an equal basis. So 200k life insurance and 200k critical illness cover.

If you select take out two separate policies it actually costs more!

If I wanted to do 250k life insurance and only 150k critical cover then am I correct in assuming Cavendish online cannot do this under one policy?

If I do it with them I am forced to take out 250k critical cover as I want 250k life insurance. As critical cover is the one that cost a lot more, then I will be forced to pay extra to have the 250k life cover.

If I do it separately it actually cost more through Cavendish!
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Comments

  • dunstonh
    dunstonh Posts: 117,927 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    If I wanted to do 250k life insurance and only 150k critical cover then am I correct in assuming Cavendish online cannot do this under one policy?

    The products certainly allow it but whether a Cavendish offer it on their limited panel of providers is a different matter.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • dunstonh wrote: »
    The products certainly allow it but whether a Cavendish offer it on their limited panel of providers is a different matter.

    Thanks dunstonh.

    Also I have just found out the answer to my own question I believe. The reason Cavendish is cheaper when taking out both life and critical together rather than separately is not because the insurer is offering you a discount to get both products with them.

    While playing around with the quotes between the Cavedish site and the Moneyworld site I found the following on Moneyworld:

    "Death benefit to reduce (accelerated) – this means that in the event of a critical illness claim before the death of the life assured, the remaining death benefit will be reduced by the amount already paid under the critical illness claim.

    Death benefit to remain the same (additional) - this means that the policy will pay out the total death benefit amount on death of the life assured regardless of whether any critical illness claims were paid out before death."

    When I got two separate quotes from Cavendish for the same term and amount for both critical and life the cost came to more than when doing it as one.

    But the reason for this I believe is that the Cavendish quote is "death benefit to reduce" however it does not say that on their website while taking out a quote. But to prove that it is the same, i did the same quote on Moneyworld and I got the exact same quote back when selecting "death benefit to reduce"

    However when I selected "Death benefit to remain the same" the quote came to alot more.

    So it makes sense to take out two separate policies, even if it means using two separate insurance companies. Also this way you can play around with the amount of critical cover and life insurance required to quit your needs. And each policy pays out regardless of the other.

    Moneyworld also actually give the option to select different amounts for life and critical. So they seem to be the better website of the two when getting quotes. Also they seem cheaper on fee's too.
  • VIGILANT22
    VIGILANT22 Posts: 2,516 Forumite
    http://www.moneysavingexpert.com/insurance/level-term-insurance

    "However beware that the fact they’re ‘execution only’ means they just find you the price without giving any advice. If you'd like advice, to ensure you have the right cover or come back if it's not, read the Getting Advice section."

    Execution only means you receive factual information and not advice ie...if you had a complaint and thought you'd been given the wrong advice, you have no comeback.......

    Going through an IFA you receive advice on the appropriate product and they take the responsibilty for the advice they give.
  • Do IFA's ever advise their clients to take out separate policies for life and another for critical cover...Both with different providers?

    Or is it just more convenient to have both life and critical with the same insurer?
  • VIGILANT22
    VIGILANT22 Posts: 2,516 Forumite
    It depends very much on a client profile.... exposure/risk they're covering.
    Advice varies from person to person as do policies ie Level/Decreasing/Renewable/Guaranteed etc...........
    Policy variations....ie Not all critical illness policies cover all critical illness's...they vary from provider to provider
  • VIGILANT22 wrote: »
    http://www.moneysavingexpert.com/insurance/level-term-insurance

    "However beware that the fact they’re ‘execution only’ means they just find you the price without giving any advice. If you'd like advice, to ensure you have the right cover or come back if it's not, read the Getting Advice section."

    Execution only means you receive factual information and not advice ie...if you had a complaint and thought you'd been given the wrong advice, you have no comeback.......

    Going through an IFA you receive advice on the appropriate product and they take the responsibilty for the advice they give.

    Do you have to pop up with a lecture about execution only versus advice every time someone posts a question about life assurance etc? It's becoming really tedious now. We know!
  • VIGILANT22
    VIGILANT22 Posts: 2,516 Forumite
    Why do you feel the need to be rude to me?

    I was replying to Reddyman's post "Cavendish Online - Life and Critiical cover - Same amount? Is this one of the major disadvantages of using an execution only broker and not an IFA?

    Well the major disadvantage is not receiving advice........

    If you don't like what I post, just ignore it...

    Why are you working yourself up?

    This is a public forum, you are in cyber space..I am not invading your property/space
  • No, you're just very annoying. I'm adding you to my ignore list right now.
  • VIGILANT22
    VIGILANT22 Posts: 2,516 Forumite
    No, you're just very annoying. I'm adding you to my ignore list right now.

    Hallelujah!..............:T
  • reddyman
    reddyman Posts: 99 Forumite
    edited 31 January 2010 at 1:38PM
    Ok another quick query about Moneyworld now.

    I have just got a quote for 30 years cover for critical cover for the sum of £150,000 from Moneyworld. Term product and no waiver of premium.

    I am just looking at my illustration document that has been generated shows as the following:

    I want to know why it says both life assurance as well as critical cover? Does this mean the the policy pays out £300,000? 150k if I get a critical illness and again 150k if I die?

    lifeinsurance.jpg
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