Cavendish: Same quote for MDLA with or without fee. Am I missing something?

Bob_D_3

Following Martin's recommendation to use Cavendish online as a broker to get the lowest premium for Life insurance. Martin recommends paying the upfront fee to get the lowest premium.

I requested a quote using both options (paying the £35 fee, or fees free).

They both came up with exactly the same premium for the same level of cover.

This may be just me being dense! Should I go fees free? it seems to be £35 cheaper..

tia999

I just did a quote based on the fee, and the illustration said that Cavendish would get commission from month 49 - that's for 16 years out of a 20 year policy. I thought they they took no commission at all?
Have a look at the bottom of the illustrations for each of your quotes (you have to go to the next screen from the one listing the different quotes to access these) and have a look at the commission section at the bottom, this should tell you whether the commission is different.

rossbenn

tia999 wrote:

I just did a quote based on the fee, and the illustration said that Cavendish would get commission from month 49 - that's for 16 years out of a 20 year policy. I thought they they took no commission at all?
Have a look at the bottom of the illustrations for each of your quotes (you have to go to the next screen from the one listing the different quotes to access these) and have a look at the commission section at the bottom, this should tell you whether the commission is different.

All that glitters is not gold.

dunstonh

They dont take the initial commission but keep the renewals. Do you honestly think they could do all that work for just £35?

toonfish

make sure you set up all the necessary trust arrangments as well - I have to be honest I have little time for these "cheap" companies. They are OK until something goes wrong and for the sake of a few pence a month I wonder if they are worth using.

dunstonh

There was an article in the financial press 2 weeks ago that indicated that the failure to utilise trusts on life assurance is going to cost billions to the consumer in inheritance tax.

To think that some people think it is good money saving do it without advice to save around £1 per month but dont utilise a trust and could end up losing 40% of the sum assured in tax.