Who hates mortgage advisers trying to sell them insurance?

Conrad

I am interested to hear what you think.


Of those who have been subjected to pressure insurance sales tactics, when all you went in for was mortgage advice, how did this feel?:rolleyes:

toonfish

wouldn't annoy me as much as a bloke who left my family destitute by failing to advise on the protection I needed.

Amazing how you slag the selling of protection, yet claim a slice of commission on it from the folk you refer it too.

You obviously don't consider it that much of a "rip off".

AndrewSmith

also, lets start another thread.

Who hates paying a fee to only get half a job done?

AndyWallace

I must admit, insurance sales can be quite intense sometimes, but the client must be made aware of it and must be asked the question as to whether they want it or not.

Andy

UK007BullDog

The FSA has just fined an adviser/company thousands of pounds for not advising on protection properly and leaving their clients unprotected!!!!!! If they do that again they will lose their licence.

So I will continue to advise my clients on insurances and protection. I will explain to them each feature and if they then do not want it its because they truly dont want it and not because they heard some crap about them not paying out or just not understanding them.

Critical Illness does pay out as long as the client is 100% truthful about their past health and do not lie on the application and medical forms.

We could also talk about advisers who request fees before even giving basic advice. Literally tying the client to them. I find that very unethical.

MortgageMamma

Conrad wrote:

I am interested to hear what you think.


Of those who have been subjected to pressure insurance sales tactics, when all you went in for was mortgage advice, how did this feel?:rolleyes:

Conrad, if you really want to get an accurate and true picture of what people think about being "sold" protection, I would suggest you rephrase your initial question to address EVERYONE on this site that have been "sold" protection, either by pressure sales or not. It seems to me the only reason you are asking this question specifically to people who have been "pressure sold" is so that you get the credibility and answers you desperately crave. If you want public feedback, ask the whole public, not just a small percentage of them!

Also, as I pointed out on another thread, anyone who is pressure sold anythign will eventually stop paying the premiums as they feel they don't need it. Commission clawback - get it? Hardly worthwhile of the advisers time!

MortgageMamma

AndrewSmith wrote:

also, lets start another thread.

Who hates paying a fee to only get half a job done?

:rotfl:

Ride em cowboy!

jamesd

MortgageMamma wrote:

Ride em cowboy!

Please don't. He's from a different part of the broker market and a variety of views is good.

payless

Conrad's arguement does have legs... if discussing some of the sharper practices found in the marketplace. ( single premium.... sale of just companies with shorter clawback premiums, annual premiums added to loan , missing out PHI in the priority list......

I'm fairly low key .... discuss it, record it, leave it if not wanted.
--

I'm not sure about the counter arguement (in other thread) about it being an FSA requirement , as FSA does not make insurance permission a requirement to mortgage brokers

regularsaver1

But isn't it a requirement to at least mention it when they are borrowing for the largest commitment in their lives?

I think insurance should be mentioned to all clients - whether you sell it or not

AndyWallace

payless wrote:

Conrad's arguement does have legs... if discussing some of the sharper practices found in the marketplace. ( single premium.... sale of just companies with shorter clawback premiums, annual premiums added to loan , missing out PHI in the priority list......

In so much as there will always be Conmen out there, of course the argument has legs. Where Conrad makes a fundamental tawt of himself is by assuming that all brokers, including yourself Colin, are selling it in this way, which of course is not true.

Also, the gains from insurance are not always that great when 1. the adviser takes the commission on non-indemnity and 2. does a commission sacrifice.

A broker who tries to sell protection and take all of the commission on indemnified terms is a broker who is not wholly against the idea of becoming bankrupt.

Also, with the internet revolution as it is, to compete on insurance premiums nowadays a sacrifice is usually required, which means the once lucrative insurance market is no longer as so.

Andy.