No commission IFAs

VirtualOdin

I have just used London & Country for a re-mortgage and was somewhat horrified to see that they received a fat fee (0.45%) from the new lender (Abbey) for doing not a lot. My internet searches had revealed the choice before I even spoke to L&C. I wa just hoping they might come up with a better deal and since it cost me no more, I went ahead.

Now I am looking for additional life cover I was wondering whether any companies do deals with private individuals to share the commission, which is much more for life cover? I'd have happily dealt direct for half the commission!

dunstonh

All IFAs have the capability of altering commission. (unless they are employed IFAs and their employer doesnt let them). You wont get a share of the commission on life cover due to the way commission is paid. Best you can hope for is a reduction in premium due to reduced commission taken.

BTW, 0.45% gross fee is not bad. Remember the costs involved in running financial services companies is quite high.

VirtualOdin

Thanks for that. And for the swift response.

I have also seen Cavendish Online - that offers reduced premiums for a fixed £35/45 fee. Has anyone used this company and what was the result. They do appear to be offering the same products for less than I have been offered elsewheere or direct from the insurer's web site.

Beck_2-2

try https://www.lifeagency.co.uk

they are cheaper than cavendish

dunstonh

try www.lifeagency.co.uk

they are cheaper than cavendish

Checked their website. Had to laugh. BTW, they are not commission free. Here are some snippets.

We believe we offer the cheapest life insurance cover on the market – and with our ultra fast online systems Life: is also set to transform the way you buy life cover in the UK.

"with our ultra fast online system...." LOL. They use the webline portal which most websites have. It isnt theirs. Those chosing not to use the webline online input have to pay £45 for the paper application.

For one thing we trawl around the entire life insurance market to match the lowest cost policy to your circumstances.

Its computerised. No-one trawls around. Its the bog standard webline plugin as already mentioned.

Being exclusively Internet based also means we can keep overheads down to a minimum. We also offer in house advice with our products. This cuts out the over zealous or greedy financial advisor who gives incorrect advice for the sake of larger commissions.

They offer in house advice. Hmm, that must make them financial advisors. However, they say they cut out the greedy financial advisor. Also the comment on incorrect advice is a bit silly. Life protection is hardly an area you can give incorrect advice.

And then, to maximise savings, we reinvest all the commission we would receive from the major life providers back into your policy.

Actually, thats not true. They only rebate initial commission. They do not rebate renewal commission.

Couldnt see any reference to being regulated by the FSA on their home page either. Bit of a slip up there from a compliance point of view.

I did think about offering a £5 per quote offer for anyone wanting to use their cant be beaten offer. I would have churned off illustrations with no initial or renewal. However. a quick read of their t&c actually makes their price match guarantee worthless. It's virtually impossible to get a cheaper quote with all their exclusions in there.

There is a place for discount pricing but there is no need for the crude and cheap attitude present on their website. HL or Cavendish are much more respectable in what they do.

deemy2004

dunstonh wrote:

Checked their website. Had to laugh. BTW, they are not commission free. Here are some snippets.



"with our ultra fast online system...." LOL. They use the webline portal which most websites have. It isnt theirs. Those chosing not to use the webline online input have to pay £45 for the paper application.


There is a place for discount pricing but there is no need for the crude and cheap attitude present on their website. HL or Cavendish are much more respectable in what they do.

Yeh they use the same system as cavindish... I don't see them being cheaper if nothing else the same.

Okay did a test for a 19 year guaranteed for critical illness and death and cavendish comes in 10p cheaper per month :rolleyes:

Beck_2-2

hi

in response to dunstonh:

thankyou for searching the life agency website for me I have a couple of pointers for you from the response that you posted:

firstly webline may seem very familiar to yourself as you are an IFA already but to joe public like myself this system is superb as it saves us the time and effort looking for a product, so in my eyes it is fast!

secondly your comment:

"There is a place for discount pricing but there is no need for the crude and cheap attitude present on their website. HL or Cavendish are much more respectable in what they do".

How can you make an assumption like that?, actually I have spoken to the life agency and they was very proffesional with me over the phone.

They beat cavendish online by over a £1 a month on my policy so they cannot be discounted for not being cheaper!

I would recommend that other people try the service and do not take any one word on this as there is discounts to be had using any one of the providers listed.

Good Luck

dunstonh

firstly webline may seem very familiar to yourself as you are an IFA already but to joe public like myself this system is superb as it saves us the time and effort looking for a product, so in my eyes it is fast!

My point was that it is a generic plugin available on many hundreds of websites. It isnt theirs as they say it is.

"There is a place for discount pricing but there is no need for the crude and cheap attitude present on their website. HL or Cavendish are much more respectable in what they do".

How can you make an assumption like that?, actually I have spoken to the life agency and they was very proffesional with me over the phone.

Easy. Their website slags off protection advisors. Yet they are protection advisors themselves. That is unprofessional.

They beat cavendish online by over a £1 a month on my policy so they cannot be discounted for not being cheaper!

I never said that you should ignore them. I was just pointing out their unprofessional website and the fact that if you do get a cheaper quote, their T&C means its unlikely that would be able to get the difference paid.

Its great that there are discount protection companies for those that want them but slagging off protection advisors by pretending they are something different, when they are not, is not professional.

dunstonh

I see Life Agency have now altered their website to show FSA regulation. However, shame they have left the protection advisor comments in there.