PHI or what for self employed

dunstonh

Yes, there are a few - ACG has already pointed that out - and i was merely making a point. But there are fewer variables than there are for a home insurance or car insurance quote.

I disagree that there are fewer variables.

Pretty nice earner for perhaps an hours work in total: taking details of initial remit / info on variables; searching for appropriate products (i assume with experience someone will have a good idea which products will come out the cheapest in any case); and perhaps double checking the paperwork.

This website is about moneysaving - and it's perfectly reasonable to suggest that i should look at ways of getting the premium lowered ... and one way of doing this is to find a way of reducing the commission paid. Perhaps paying an IFA a hourly rate instead of commission, i'm not sure how possible that is with PHI? Nor how much work would get done for less than the commission?

I wouldnt do it for £270. It would not be profitable. I suspect an hourly rate to come in higher than the commission.

I suspect one reason for the relatively limited uptake is that people don't expect to have to arrange to see an IFA/mortgage advisor for a IP/PHI policy.

I suspect the main reason is that most people dont know it exists.

You just need to look at the websites of many IFAs to immediately be put off - they all tend to look like they are only interested in financial products dealing with those with particularly high-incomes ... not simply wanting as cheap PHI cover as possible.

Which is fairly logical given that IFAs in general deal with the middle to upper end of the market. FAs tend to deal with the bottom end. Like any business, you focus on your market.

ACG

I live in Manchester...there arnt too many rich people around here. Most of my clients receive working and family tax credits etc. I have clients who have been drug users, i have clients who i met at my local drunk on a saturday night. We dont sit in our mansion looking out over our 16 acres or land (atleast i dont anyway).

I went to an event once which was for mortgage and financial advisors, one had egg on his tie, another came in with a creased up shirt, leather jacket and tattoos on his face. I was going to say were just normal people but after seeing some of the advisors i think that would be a compliment to them.

The websites are there to make them look professional as they are offering a professional service, im sure if you asked to deal over the phone/email a lot of them would be quite happy to do so or alternatively im sure some would be happy to come and see you in the evening or weekend, most of my appointments are in the evening - i hate saturday appointments but i do them as its a case of doing it to get the business or missing out on a client.

dunstonh

I live in Manchester...there arnt too many rich people around here. Most of my clients receive working and family tax credits etc. I have clients who have been drug users, i have clients who i met at my local drunk on a saturday night. We dont sit in our mansion looking out over our 16 acres or land (atleast i dont anyway).

There are always exceptions to the rule. I know an adviser that targets the bottom end of the market. He always jokes that he has to wipe his feet on the way out of the house. He makes a good enough living from it. However, it is just him. So, his costs are low. New advisers tend not to be picky as well as they will do anything as they are building their business. The longer you have been going the less need there is for you to do the small cases.

If you break down the costs of business then £270 ends up with virtually nothing in your pocket. If you knock of 30% of cost of compliance/regulation (PI, levies and other implicit costings) then that leaves you £189. Staff costs can knock off another 25% which takes you down to £141. Throw an office in and you can take that down to under £100. Software costs will take another 10% off. so you end up with £90. How much do you cost your knowledge? How much do you cost your lifetime of liability? What are you left with?

alternatively im sure some would be happy to come and see you in the evening or weekend, most of my appointments are in the evening - i hate saturday appointments but i do them as its a case of doing it to get the business or missing out on a client.

There will come a point in your career where you wont want or need to do out of hours calls and expect to be paid a pittance for it. I have been there, like most advisers but the longer you have been established, the less need there is to go fishing. Instead it comes to you on a plate. Or you will do what I do. Use the trainee advisers to do those calls and take a cut of what they earn.

ACG

I totally agree with you. I dont have staff (1 day!) and i dont have to pay for the office, 30% plus £150 a month and that policy would basically just ensure my operating costs have been covered for that month.
But for £279 like you say, i would prefer to take a fee.