Life insurance quotes cheaper than our IFA's?

dunstonh

The difference is you advisor does research and has to back up his research with evidence its the best for you. Money supermarket, you are placing an order - if it turns out to be incorrect then you have no recourse (you cant complain about miss selling, you have no back up from the FOS or FSCS if you do it through a non advised route).

And dont forget that in the event of a claim, the adviser will also be there to help sort things out.

But there is no advantage with a level term assurance policy, so we should get it as cheap as we can, from wherever. (And many brokers would happily share commission to keep the sale!)

I disagree. What about options like reviewable/guaranteed premiums (or even renewable which some quote comparison sites stick on the list and people have bought in error). Or guaranteed insurability options which I consider vital (having used them a few times over the years) but many of the budget plans remove to save a few pennies on premium. What about trusts? Comparison sites wont put the policy in trust and leave you to do it. Many people wont have a clue on what to so (those that do, can easily DIY in that case).

There is no issue with people going DIY who can DIY. However, saving a few pence by going with the budget option on a comparison site can be false economy if you stripped out options that you may later need.

Becky, tell your adviser how much Moneysupermarket are taking from you as you have here and ask him if he wants to match their take and see what he comes up with). If he is quiet at the moment, he may well do it. If he is busy, he may not be able to afford to take on the liability for such a small amount.

opinions4u

Different illnesses covered by critical illness plans.

Reviewable or non-reviewable premiums.

Flexibility to increase cover at a later date with no need to provide evidence of health.

Saving 25p a week and being on the wrong side of the above can be a massive false economy.

Quentin

OP,don't be swayed by the brokers piling in with their scaremongering.

See MSE Martin's guide for the opposite view on buying the cheapest! (Though someone like Cavendish could be the cheapest)

weejonnie

If you buy something you don't understand then you must accept the consequences of your stupidity when something goes wrong.

Quentin

weejonnie wrote: »

If you buy something you don't understand then you must accept the consequences of your stupidity when something goes wrong.

You would say that (as you keep telling us we are stupid if we buy our insurance anywhere else but via a broker)

Funny how each time you pass on this "advice", you fail to tell us you are a broker too!

Beckyy

Thanks again for the replies. I've decided not to take out a policy again myself, as if I was to die my OH wouldn't be much worse off financially and we have no dependants. OH is still going to have a policy though as he's the main earner.

I've found the cheapest quotes through moneyworld.com for an exectuion fee of £25 (same quotes on cavendish for £35 fee). These are just under £5 per month cheaper than IFA quotes. I'm just replying to an email from him and will explain to him that I'm intending to take OH's policy out through them, but if he wants to match the policy for a £25 fee I would be happy to do it through him. I highly doubt he would for the sake of £25, but at least the option is there.

I appreciate this might look a little rude on my behalf, with him recommending this insurance and me taking it out elsewhere, but it's something that I would have been confident doing anyway unlike the mortgage which was our specific reason for going to him.

OshayAway

Is it with the same insurance provider? Does it include guaranteed insurability? Does it include any critical illness benefit? Will you be placing the policy into trust?

kingstreet

Beckyy wrote: »

OH is still going to have a policy though as he's the main earner

I take it you're not married?

In that case, your partner needs to make a will at the very least.

Preferably, in addition, the policy should be written in trust for your benefit. If this does not happen, the policy proceeds will be paid into your partner's estate and be subject to probate, which can extend the time it takes for you to receive the payout. In addition, if your partner's estate becomes £325k or more, Inheritance Tax will be charged on the excess.

Writing the policy in trust now will ensure the proceeds will reach you faster and without causing a future IhT liability.

As an alternative, writing joint cover may not significantly increase the premiums but would ensure the proceeds pass automatically to the survivor. You may have considered this already, but your posts don't make it clear if you were looking for several single policies, or one joint contract.

Beckyy

No, it's from a diffferent insurance provider. I did find a cheaper quote from them, but it wasn't the cheapest.

Yes, it includes critical illness cover.

By guaranteed insurability do you mean the option to extend cover if you chose to?

I asked our IFA about placing the policies in trust when he gave us our new quotes and he said to just write mirror wills (we're not married). I've read about the tax implications of it going towards part of an estate (which he never mentioned). I assume that he said this incase my OH and I were to split up any time whilst still the beneficiaries for each others policies, but he never gave us any reasons for his answer.

Realistically though, if my OH was to die within the life of this policy (bearing in mind he's only 23 now) it would be highly unlikely that his estate would be over the inheritance tax threshold, even with the £100,000 from the policy. The only real reason for taking it out is a safety net incase anything was to happen to him during the term of the mortgage, for example if he was to become critically ill and have to give up his job. I suppose it may be wise though. Would you care to share your opinion on this please?

ETA: No, we're not married kingstreet. We do need to write wills though. We own a 2nd house mortgage free, with a survivorship clause (Scotland) and our current new house will have a survivorship clause. We do need a kick up the bum to get wills sorted though, and will have to do it after we've got our move sorted. Startng to think it would be simpler just to get married

kingstreet

A will doesn't affect the inheritance tax position, nor does it remove the probate wait.

Like I said, the inheritance tax issue isn't now, but in ten or fifteen years time when he's older and hopefully worth more, chucking £100k into his estate might mean 40% of that money is lost when a simple trust could have ensured that couldn't happen. You also get the additional benefit of not having to wait for probate - an often lengthy and frustrating period.

All you need to do is ask the life office you choose for the cover for the necessary form, then round up two or three friends/relatives to act as a trustee. You can be one, even as a potential beneficiary. Your partner will be one, as settlor, so you'll need at least one more, as he won't be around to administer the payout, should the worst happen. Having him as a trustee means he can remove you as beneficiary in the future if you ever did split up.