Cavendish online or moneyworld

weighty1_2

kingstreet wrote: »

Let me ask you a favour. Give me the details one one of the quotes you've got and I'll tell you the normal premium and the commission "normally" paid and see if I can give you a working example of what I mean.
QUOTE]

I actually did this earlier this evening using my personal details. The quotes I obtained via Assureweb were still approximately 10-20% more expensive even once I'd sacrificed ALL the commission than via Moneyworld!!!

It appears that Moneyworld can command such high commission rates that the average adviser, and I'm part of a 200man network , not a small directly authorised company simply can't compete on a like for like basis......

stephenni1971

Do you mind if I ask the overall cost of the covers recommended?

kingstreet

A level term policy and a FIB combination seems an eminently sensible approach.

kingstreet

weighty1 wrote: »

I actually did this earlier this evening using my personal details. The quotes I obtained via Assureweb were still approximately 10-20% more expensive even once I'd sacrificed ALL the commission than via Moneyworld!!!

It appears that Moneyworld can command such high commission rates that the average adviser, and I'm part of a 200man network , not a small directly authorised company simply can't compete on a like for like basis......

Blimey. That's what I was going to do.

I was curious. So the likes of Aviva and L&G are paying what, 175% or more and these net firms can rebate that and still make a living?

I don't know why we're surprised. People are being brought up to buy like this, oblivious of the consequences - they are conditioned to believe cheap is best. We know that's rapidly falling apart on here as far as car insurance goes with the cancellation and alteration fees being levied.

Still, as long as the likes of Cavendish and Moneyworld leave people to think a trust is what you use to treat a hernia, I guess we'll continue to be needed...

Flow2010

Thank you for everyones input and it has got me thinking/looking into trust and start researching a bit on FIB linked to RPI!

weighty1_2

Since the demise of Click Life and the £900,000 of clawback commission which they supposedly owed to Fortis (as it was) I was hoping life companies would start to be more cautious in dealing with non-advisory firms due to high NTU and lapse rates....doesn't seem to be materialising unfortunately.

I think there will always be client's who value advise and service over cost. I recently had a client continue taking his cover through me even though he has managed to find quotes which were initially about £40/month cheaper. I sacrificed a portion of the commission but was still £20/month more expensive and simply explained that I'm not willing to work for nothing. Unfortunately, the Cavendishes and Moneyworld push the limit for even the most service oriented client.

dunstonh

Getting quotes at Moneyworld seem to be around 40-50% cheaper than my mortgage advisor too!

It shouldnt be that much if its an IFA. However, if you are using an insurance agent (tied to one or a smaller number of insurers) then that sort of difference is possible. Note, that whole of market applies to mortgages. A tied sales rep with an insurer can still be whole of market on mortgages (most tied agents are).

One very common error that DIY people make is to mix up critical illness cover with terminal illness cover. Or to mix up guaranteed premiums with reviewable or renewable.

Since the demise of Click Life and the £900,000 of clawback commission which they supposedly owed to Fortis (as it was) I was hoping life companies would start to be more cautious in dealing with non-advisory firms due to high NTU and lapse rates....doesn't seem to be materialising unfortunately.

We keep hearing that the redraws and errors on DIY arranged policies is significantly higher than advised cases and persistency is not as good. Yet as you say, no-one has really pulled back from that except perhaps scottish widows.

I actually did this earlier this evening using my personal details. The quotes I obtained via Assureweb were still approximately 10-20% more expensive even once I'd sacrificed ALL the commission than via Moneyworld!!!

I did a test with this a while back and found that on nil commission basis on assureweb I was coming out cheaper. However, I know my network is well priced on insurance having compared it with a couple of IFAs from other networks.

I still wouldnt knock the application out for £30 though. Not the market I'm interested in and I have no interest in running a factory line of non-skilled staff processing forms.

kingstreet

weighty1 wrote: »

I actually did this earlier this evening using my personal details. The quotes I obtained via Assureweb were still approximately 10-20% more expensive even once I'd sacrificed ALL the commission than via Moneyworld!!!

Thought I'd have a play and I beat most of their quotes on a nil commission basis, like dunston. I think the L&G server must be down tonight as there was no L&G output on either their quote or mine. They beat me on Friends Life, I won on Scot Prov, Aviva and Aegon.

I might have to try more examples tomorrow...

weighty1_2

I've just tried again, thinking that I may have made an error, but no, Moneyworlds cheapest quote (LTA - 25yr £500K, 35yr old male non-smoker) comes in at £23.03 whilst mine comes in at £26.91 - NIL COMMISSION!

Like Dunstonh says, I'm gald I'm not in the market that these providers aim themselves at, however, I still find it interesting that my network (which is completely independent) can't obtain terms which allow me to at least get near to the cost of these providers.

kingstreet

You're not using the first line of Moneyworld quotes are you? They're the ones where the client pays a £25 fee.

I ignored them as I didn't think I was comparing like with like. Now I'm thinking about it, that wasn't the right thing to do.

Just had a quick check. I did a 26NB male NS £200k LTA 25yrs.

For Scot Prov I got;-

Them fee £7.40

Them comm £7.88

Me comm £9.60

Me nil comm £7.50.

Aegon;-

Them fee £8.75

Them comm £9.00

Me comm £10.42

Me nil comm £8.75