Insurances via bank

cottonhead

Went to the bank on Friday to open a new account and came out with life insurance, contents insurance and some other breakdown emergency home thingy!
Its not normally like me to sign up before checking out the competition but over the weekend I went on a comparison site and the estimates seems loads lower for much more cover.
I now feel quite annoyed that I signed up - Im going to cancel. In retrospect the guys stories about all the people he knew who had come to him begging for insurance but it was too late as they had been diagnosed with something terrible and the woman who died and the man who comitted suicide...... I just feel like I have been duped!
Guess the bank isnt the cheapest place to get insurance after all ?

InsideInsurance

Now there is a surprise!

Before you actually cancel, check what the cancellation fees are. When you load these on top it may be cheaper to keep them than get rid of them (at least the contents and home emergency)

dunstonh

Its not normally like me to sign up before checking out the competition but over the weekend I went on a comparison site and the estimates seems loads lower for much more cover.

That is correct. IFAs can retail the same products around 30-40% cheaper than the bank. Banks are known to be the most expensive distribution channels out there in most cases.

In retrospect the guys stories about all the people he knew who had come to him begging for insurance but it was too late as they had been diagnosed with something terrible and the woman who died and the man who comitted suicide...... I just feel like I have been duped!

Most bank sales reps do not have the experience to have seen such things. Their staff turnover rates are so high that many only do the job for 2-5 years before moving on. I have seen such things and most experienced advisers would have as well. The newbie advisers are no doubt just repeating what the older ones have told them. Or more likely, have seen "The Widows Tale" which has been vital viewing for salesforces and advisers for decades and is using that as a basis of reality.

Guess the bank isnt the cheapest place to get insurance after all ?

It hasnt been since depolarisation in 1988 (prior to that, most operated like independent adviser/brokers do today)

ACG

The cheapest place will most likely be the comparison sites. However, if you go it alone your not backed up by the fact you were given advice.

Its often worth paying a little more to get the advice side of it. However, banks are more expensive the mortgage and financial advisors and theyre usually tied to just 1 company.

InsideInsurance

Most banks are also unadvised for Home and Home Emergency insurance too. Cannot comment for Life