Life insurance....Mortgage advisor quotes?

tink_1983

Mortgage advisor came yesterday and gave us quotes on home/contents insurance as well as life/critical illness cover.

Do MA's earn money on my monthly premiums?
for life/CI insurance it was £26pm for me and £40pm for hubby as he is older etc.

Spoken to few ppl who say this seems high and just did quote with aviva for the two of us and it came out at £18pm??!

I might be missing something that the MA knows to do on the quotes, but does this amount of difference seem right?

Many thanks

kingstreet

Yes. They do earn.

Not knowing how much or what type of cover you have quotes for, there's little chance we can tell you if it's good, bad or indifferent.

Have you prepared your quote on a like for like basis?

tink_1983

Yes i think so, i filled in for decreasing cover to go down in line with the value of the mortgage, husband is 37 and im 29 so understand why his is more, think ill call aviva and do quote & talk it though with them.

MA said that the price per month would always be the same, we are both none smoker, no health issues, just did the questions with the MA's office and we said no to everything that could have been wrong with us or imm family!

Think we will just take the buildings insurance and then deal with the life insurance ourselves, he did warn us though that from mid december something about equalling out for men & women so might be good for me to do before that happens.

kingstreet

TBH I don't like Aviva.

There are better and/or cheaper products out there. Why did the adviser choose Aviva?

Limited panel or tied to them by any chance?

Gender neutral pricing starts on 21 December, so you have to get any cover done quickly to get the old rates.

tink_1983

he said aviva was cheapest...

tink_1983

Just did quote with aviva direct, came out for joint quote to be £69, so more than my MA quoted!
King street - which insurers do you rec?
we want the life and critical illness cover for the term of the mortgage decreasing with time isnt issue to us as it will just be insurance to make sure that the mortgage is covered...

This is all a bit of a minefield to us tbh, first time buyers :-)

kingstreet

If you are using an independent adviser, trust their judgment to find you the right deal. If they have only a limited panel, or are tied to one life office, you may be able to do better.

You should have been given an Initial Disclosure Document which confirms the service they offer and how they get paid.

It should say;-

range of insurers
limited number of insurers
single insurer

and there should be a tick by the side of the one which applies to your adviser.

Many of us on here would recommend you consider permanent health insurance ahead of critical illness cover.This is because you may suffer an illness which stops you working, but wouldn't be serious enough for you to make a critical illness claim.

If your employers don't pay you indefinitely if you're off sick, you're probably better off with PHI.

tink_1983

The ma companies keyfacts sheet says they have several insurers they use, thanks for the tip about the PHI.
thanks

dunstonh

Do MA's earn money on my monthly premiums?

Depends on the employment terms of the mortgage adviser. Some will, some will not (directly). However, even if not paid in direct relation to the sale of a policy, they will be expected to put things in place as part of their employment usually.

Spoken to few ppl who say this seems high and just did quote with aviva for the two of us and it came out at £18pm??!

Is that comparing like for like? Is the mortgage adviser a tied agent or independent? (independents are typically around 40% cheaper than tied agents)

Just did quote with aviva direct, came out for joint quote to be £69, so more than my MA quoted!

It is quite common for direct pricing to be more expensive.

The ma companies keyfacts sheet says they have several insurers they use, thanks for the tip about the PHI.

That suggests limited panel. Better than single tie but not as good as independent (although note that independent is usually referred to as "from a range of providers" it wont say independent unless it is a combined document covering all types of advice - the FSA really mucked up classifications of mortgage, insurance and investment by using different terms and requirements for each).

paddyk

try lv.com. I'm 28 male and pay £5 a month for £88.000 life insurance.

tink_1983

paddyk wrote: »

try lv.com. I'm 28 male and pay £5 a month for £88.000 life insurance.

Thanks for this ill have a look.
We need it to cover our mortgage of £174k & want critical illness cover aswell as life cover so think this has real impact on price.

Iv talked to few companies today and got quotes not that far off the ones from my MA.

Thanks :-)