Unemployment Insurance via 3rd party.

CaptainYoung

I've been shopping around for unemployment insurance, and have received a quote via what seems to be a financial advisor trading as a company. The quote given is through Legal and General (Lifestyles Insurance). When I check the L&G website, the quote that I have been given and the base price on the website differs somewhat. It's too my benefit, it seems the price I have been given is around 30% less than what L&G say on their site. I've investigated the FA, and they are registered with the FSA. Do some FA's get preferential rates from the larger companies to act as a sort of salesman for them? Does this sound legit?

Thanks for any advice.

forgotmyname

They will get some discount or bonus but 30% sounds a lot.

Maybe they are playing with the data to get a lower premium? Which may only come to light if you need to claim and find it gets rejected?

Personally i would rather pay the extra and know i was properly covered. If you have the time to trawl through the paperwork and contact the main company to find out if all the details are correct them ists worth a go i guess.

dunstonh

Do some FA's get preferential rates from the larger companies to act as a sort of salesman for them?

If the FA is an agent of L&G then he is a salesperson for them. If it is an IFA, then IFAs can buy on the basis of economies of scale like any retail basis. An L&G rep would typically be more expensive than an IFA (not specific to L&G but all tied agents are more expensive).

I've seen quotes as much as 40% cheaper via IFA pricing compared to tied rep pricing on a like for like basis.

jonesMUFCforever

I would consult an IFA.
Unemployment cover IMO justs covers that not say unemployment as a result of an illness.

TonyINPFM

As a FA myself i understand what is going on.

Firstly allow me to say if the FA / FA's partner company is on the FSA website you should be comforted that they are trained and regulated to a high standard. The partner company should be on their business card with all their contact details.

May i ask who the company is?

Secondly most insurances can be cheaper via a credited FA. You should think of us as a little meerkat trawling through many companies to get you the most APPROPRIATE cover. Not always the cheapest but obviously we do get deals because we potentially give the company quality customers that in a way are already vetted rather than those who go direct and may not be able to pay the premiums involved.

As far as Unemployment is concerned this type does differ between companies. Most will cover any reason for loss of job that is not your fault ie redundancy. A good FA will have shown you the features of a given product.

Contact me for more information.

kingstreet

I suggest consulting an Independent Financial Adviser, not someone tied to one organisation or a limited panel of insurers.

Ask friends and relatives for a recommendation. Failing that, try https://www.unbiased.co.uk switching off the "website/email only" option so you get the full list for your area, not just the paid advertisers.