Is this excessive - broker commission

mikey72

riverboat2001 wrote: »

Cavendish charge a flat fee of £35 for each policy.
http://www.cavendishonline.co.uk/life/

The Mortgage Broker (providing this insurance quote) will get :
£2626.04 immediately and then £3.18pm after month 44

We know we need a level term (ie NOT decreasing) amount of cover, and contact Cavendish and a few others on Monday to confirm this.



Perhaps we are getting confused about the terminology and type of insurrance

Surely apart from the level term part it should be just standard life insurance, whereby if one of us dies the other will get the £273k to pay off the mortgage, is that correct?

That's why you have to consider paying the broker.
It may not be worth £2626 to you, and if it's not, it's down to your knowledge.
Internet advice may be right, but it may be wrong.
Spend a lot of time reading up on what you really need to be buying.
(I'm not trying to be clever here by the way, I don't know the answer to this question, sometimes you do need to take professional advice though)

Burridge60

As said before many times on this and other threads you get no advice for direct internet offers!

Although Cavendish Online is authorised to do so, we WILL NOT offer any advice for any of the products available when using our service. Cavendish Online is an IFA that provides an "EXECUTION ONLY" service for clients who have NOT sought or received any advice from us. Cavendish Online will act on your behalf in arranging Life Assurance, Income Protection, Pensions and Investment products. Because Cavendish Online is independent it can arrange the products of different companies on a whole of market basis.
If you have any doubt about the suitability of the investment or financial product we recommend you consult an Independent Financial Adviser to seek financial advice.


So you ask for a pound of carrots and they give them to you even if you wanted those small ones really or the ones with green bits on!

dacouch

Life Assurance is not my field of expertise, but here are my observations from what I have gained working alongside IFAs.

The Cavendish quote could well increase as the heart problem history in the family is probably something they will take into account eg it could increase the premium.

The other issue, is Financial Adviser you have chosen has recommended some products therefore if there is a problem you have come back against him. Should you go to Cavendish you are in effect acting as your own FA so would probably have no come back against Cavendish. However assuming you select the correct product and declare absolutely all of the information required this should not be an issue. But it is important that you are aware of this

dunstonh

Surely apart from the level term part it should be just standard life insurance, whereby if one of us dies the other will get the £273k to pay off the mortgage, is that correct?

Cost isnt the only consideration. Life assurance does have some options and things that can be taken out of it to reduce cost. Guaranteed insurability options for example. In my younger days I thought of them as a bit gimmicky. However, having utilised them with clients over the years, I will no longer recommend a provider that doens't have them/ Guaranteed premiums being another. It used to be said that reviewable premiums allowed the premiums to go up but they never did. Of course, that was try until some providers did actually put their premiums up. So, guaranteed should be used in favour of reviewable. You should also avoid renewable unless you expect not to go the full term.