Relevant Life Policy for Company Director - Broker advice

Leg-end_2

I am looking for some help and possibly a quote from a broker. I am looking to get a relevant life policy for a company director that is purchased by the company. I have received one quote from a broker that seems expensive in comparison to the cost of purchasing a standard life assurance policy from Cavendish Online.

Can anyone recommend a broker that does not add high commission charges or are there any brokers that can provide a competitive quote for me.

dunstonh

I have received one quote from a broker that seems expensive in comparison to the cost of purchasing a standard life assurance policy from Cavendish Online.

it will be. Cavendish is nil commission. The quote you would have got would almost certainly be commission basis. However, you could ask the local IFAs if they do it on fee basis. Past tests have found that IFAs on nil commission beat cavendish on nil commission. The fee can then be paid by the company which is a valid business expense.

ACG

Also to add.

When i used to work for one of the life offices (which was up until earlier this year) the prices were different for Individual and Business Protection - the reason being is there are things behing the sum assured that differ).

But you have 2 choices.
First is as Dunston said, you can pay by fee instead.
Second is to speak to another local broker. You can then compare prices.

weighty1_2

The other thing to consider is the provider. When you looked at Cavedish online were you comparing the same provider as your broker had recommended?

As ACG has mentioned a relevant life policy is classed as business protection and therefore the premiums may be different than those for the standard term assurance. Also, only certain providers offer RLP's as they use a specific trust arrangement which not all companies have. Thirdly, is your broker doing any additional work to warrant the commission they are earning? I regularly arrange RLP's for my clients who are company directors and often as part of the process deal with their accountant as most of them haven't come across these types of plan before and expect a life insurance plan put through the company books to create a P11D liability. I also draft a template for my clients board meeting minutes confirming the cover is being arranged on a commercial basis.

All of this is more time consuming than setting up a standard level term assurance. Out of interest, if you're happy to disclose, how much commission is the broker earning from the plan?

It might be that actually they aren't really earning any more than if they charged you a fee which you paid upfront. You wouldn't get me to set up an RLP for any less than probably £750 and that's provided the client is in good health and GP reports aren't required, which then need further chasing.

Leg-end_2

I am comparing offerings from the same companies. For example, Bright Grey and Zurich. If any brokers want to provide me with a quote drop me a PM.

I do not need minutes creating or any other services.