Fee based life insurance

lordhaldon

I can't believe that a money saving website is advocating fee only based life insurance.

What happens if you change your mind?
What happens if the case is rated?
What happens about reviews?
Do you get your money back if the case does not proceed?

Let the "conduit" take some commission - the price will sort out the market place - and if anything happens such as you change your mind or you are rated for health, occupation or pursuit reasons, it costs YOU nothing!

dunstonh

What happens if you change your mind?

Why did you apply for it in the first place then?

What happens if the case is rated?

It will be rated elsewhere so whats he difference?

What happens about reviews?

The people buying DIY dont want reviews. Thats why they are buying DIY.

Do you get your money back if the case does not proceed?

The retailer in question does refund some of the money.

Shambler

Unfortunately I read this too late. Not sure if I am bound to pay the fee or can I pull out?

lordhaldon

dunstonh wrote: »

Why did you apply for it in the first place then? People change their minds for lots of reasons. Have you ever changed your mind on anything?



It will be rated elsewhere so whats he difference? The difference is it won't cost you an up front fee.


The people buying DIY dont want reviews. Thats why they are buying DIY. They are not given a choice.



The retailer in question does refund some of the money.

- but not all.

dunstonh

lordhaldon wrote: »

- but not all.

why should they refund it all? They have done the work up to that stage and incurred a cost whether it goes ahead or not.

lordhaldon

It's a good point. I don't know what the figures are but how many cases go through on the initial quote given? It may be an idea for this website or the "conduit" to publish those figures at the point of purchase.

dwsjarcmcd

What the OP hasn't mentioned is that in return for the fee, the commission that would have been earned is used to reduce the premiums.

-Vita-

It is worth viewing a similar recent thread 'Cavendish Insurance up front fee' on the forum which addresses the same topic.

lordhaldon

I am not an adviser. I do however find it difficult to understand how a money saving expert can endorse an option where you could possibly LOSE money. We are still not clear how many cases are accepted on "normal" rates. Yes, you are better off in terms of price if you are "normal" in terms of health, job and pastime but if you are slightly outside the norm, the rates will be different and it may well be that you decide NOT to carry on, which means you have LOST £17.50. People also have to understand that if it is the wrong type, term or amount, the responsibility lies with them and that's a heavy bag to carry.

dunstonh

I do however find it difficult to understand how a money saving expert can endorse an option where you could possibly LOSE money.

Because its cheaper.

We are still not clear how many cases are accepted on "normal" rates.

Probably the same as industry standard which would be the vast majority.

Its simple really. If you think you are not going to be accepted on standard terms then go a different way.