Do I Need Mortgage Insurance?

MortgageMamma

Conrad wrote:

I sleep very well knowing Ive been entirely candid from the monoent I meet a client as to how I make my money, unlike the commision Crows who tempt people in with the promise of a 'free service' only to later subject them to pressure selling tactics in order to gain insurance sales.

Hope you sleep well Mortgage Mamma knowing you recommend new CIC policies every day to people who hold existing plans with far far better C I definitions?

Conrad, what on this earth makes you think I would advise one of my clients, who already have CI cover to take out a new policy and cancel the old one, with me doing a full comparison of the definitions to ensure the CI policy is superior to the existing one? Everyone knows that the old definitions on CI policies are mostly superior! Do you think I'm stupid? Surely anyone working as a salesperson on this level would be deemed unfit by the FSA. Not every adviser is a sales monster but thank god most of us have a better intellect than you!

As ANY of my clients will tell you, I NEVER sell anything, I offer my clients straightforward, down to earth ADVICE in PLAIN ENGLISH - which I why I get so many referrals, as my clients appreciate I don't try to ram products down their throats. I'm very laid back by nature and have superb listening skills, and if my clients don't see the value in something I simply document it and make them sign a statement to say they have been fully advised on something but chose not to accept my recommendation. Before I even begin a fact find I tell my clients exactly what I will do for thm and that I will REVIEW their insurances and offer advice as part of the process. I've had very few decline this valuable service.

Any adviser who has been around long enough will know that you can't sell a client anything unless they really want it and see value in it in the first place, so there is no point in pushing anything - not only that but it makes you look despertate. I cannot deny that there are SOME advisors in the industry (and they will be in it a very short time) that are sales crows, but, Like AndrewSmith, AndyWallace and other well respected advisers on this forum I am 100% self employed, no targets, no pressure, not a saleswoman but an advisor. I pride myself on my job and my indepth knowledge of the industry - I sleep well at night knowing not only am I a good adviser, that I have a happy client base and am well respected by other industry professionals - but that I am a lovely person as well - I hope someday you will be able to achieve that balance.

On a less personal note, I, and many others have stated that they do not agree with your business model. I certainly don't think you are being fair on your customers. I would urge you to rethink and see if you can develop a way to offer your clients the service they deserve.

Rick62

Clients are'nt children, they are more than capable of arranging thier protection needs without my 'help'. Many so do with the likes of Tescos.

Is this execution only? So no advice on amount needed, no advice on term, no advice on additional products or alternatives, such as Critical Illness, or Income cover, no advice on putting into Trust to avoid inheritance tax no advice on potentially setting up to obtain tax relief on premiums, saving up to 40%.

Good brokers do not churn, they do not force insurance on customers, they do not 'require' insurance sales to make their income They do discuss and offer customers the options, so the customer is aware of the choices, and also is aware of how to get the best value from protection insurance.

dunstonh

Clients are'nt children, they are more than capable of arranging thier protection needs without my 'help'. Many so do with the likes of Tescos.

Interesting that as the consumers association recently wrote off Tescos life assurance product as poor quality and they currently only offer reviewable premiums when packed with CI. They are easily beaten nowadays as well.

Im proud to be a specialist and not a Jack Of All Trades.

I agree with that, which is why I do not do mortgages. However, mortgage and protection is an ideal area to specialise in.

It's a rip off, and people who sell it are con men!

I would like to thank you for calling me a con man. Seeing as we have never met, I dont know how you can decide that. Plus with 30,000 odd advisers out there, I would like to know how you have managed to see them all to make that informed comment....

This insurance has been on BBC Watchdog several times. The insurance companies will do everything they can to AVOID paying out.

And watchdog are of course a good source for unbiased material. They have one of the worst reputations for over sensationalising issues there is. Most CI providers pay in excess of 90% of claims and this data is published by most now so it is easily verified.

UK007BullDog

My Cousin thought like you Conrad, and died of adult leukemia. He was not covered. His wife and child now live with his mother and her partner as he had no insurance. They are now trying to scapegoat me as I did not "enforce" the issue of being properly insured with him. I remember the many family reunions where I preached to the family how important cover is. His snidey remarks were I only do it for the commission.

Thank god my neighbor did not think like that and still thanks me for the CI and Mortgage protection I sold him. He was a gas fitter with British Gas and had a serious heart attack. He is so bad now and had a tripple bypass last year. His mortgage is paid off and he has enough money left over to send 2 of his 3 kids to University. As for the state..... laughable the support one gets from them if ill.

Conrad, if your client has all this money and is able to buy a bigger house, multiple holidays a year etc. then all I can think of is benefit fraud. He may not be but a lifestyle like that on benefits..... just makes me think there is something iffy about it.

MortgageMamma

The message of the importance of Life, CI and PHI and PMI I am not ashamed to drive home to people.

I am just 30 years old and have spent the last 18 months frightened that I am about to get cancer after having three grade 3 abnormal smears. I' ve still not had the all clear. With three kids aged 9, 5 and 2 to think of, I would be absolutely terrified now if I didnt have cover before this happened to me, I'm still frightened, I still might get cancer, but I know due to the fact I'm adequately insured my family will be OK if the worst happens. Indeed Andy Smiths partner had a breast cancer scare earlier this year and his dad is also dying of a critical illness. My ex father in law died in may after being diagnosed with throat cancer two weeks previously.

So if you are wondering Conrad exactly why I despise your attitude to insurance you have just read your answer.

As for anyone else reading this, have your insurances reviewed, whether its by someone who charges a fee or not it really does not matter, just make sure you have the right protection so you can live for today and not have to worry so much about tommorow. It might seem like a big expense, but think about the amount we all spend on sky tv, take aways, ad socialising and designer stuff. small price to pay for financial security and the well being of dependents.

HelpWhereIcan

I just find it really really funny that someone who tells us that they are authorised to do protection business but that all that insurances are a waste of money, never pay out and are pushed onto people by conmen still advises all his clients to speak with a protection specialist!!

Have the courage of your convictions and put a paragraph in your reasons why letter explaining why all insurances are a con and the customer is better off relying on the state and we'll see how you do on your next compliance visit.

It's also very disturbing to see a self confessed expert appear to believe that PHI and MPP are interchangeable terms that describe the same thing.

If you believe that we all mis-sell new policies with inferior CI definitions to the ones they are replacing; does that mean you believe the old CI policies were not cons?

Have you written to all your clients to advise the cancellation of the policies you did write with an explanation of why they are no longer suitable?

:T :rotfl: :rotfl: You are special Conrad :T