Don't take the insurance?You may still be charged the admin fees

isayoldchap

Martin's article on life insurance quotes and fees was brilliant.
http://www.moneysavingexpert.com/insurance/level-term-insurance

If you scroll down you'll see the companies who just charge an admin fee.£30
or £35 seems a small amount to pay for each policy set up.Especially when you see there can be tidy savings to be made.

LAO comes out the cheapest for me however what I've yet to see is a clearly worded article stating that you will still be charged the £35 per policy if it goes to underwriting and you decline to take out the policy.A word of warning if you decide to take out three policies together.That's £105 you will loose if you go elsewhere.Unless they just charge you the one fee.

You may just want to ask for one policy at a time if it goes to underwriting,until you can get cover at the price you want to pay.

Cavendish apparantely charge half the fee.They told me when I phoned.Still
he couldn't tell me if it was on the website.

Moneyback Mortgages said they WILL REFUND THE ADMIN FEE but I will get that clarified on Monday from Tony when he phones.

Is it worth going to the IFA just to see if they cover you first?

I wonder if the FSA are in total agreement with the fees for not taking the policy and whether it is clear enough on the companies websites.?I may just find out when I call them today on 02070661000.

16.55 update .The FSA advisor has phoned to say that the company does not have to say the fee is non refundadble,
but it would help she thought if they had included it in the key facts..Eyes wide open on what you do and how many policies you want to take up at once.It could be a costly exercise

dunstonh

Is it worth going to the IFA just to see if they cover you first?

No. That is not fair on the IFA you go to and you would have to complete a factfind and application anyway so whats the point.

I wonder if the FSA are in total agreement with the fees for not taking the policy and whether it is clear enough on the companies websites.?I may just find out when I call them today on 02070661000.

The FSA have no problem with it at all as work has been done and you agreed fee basis for the transaction. With larger fees, they would "encourage" some rebate but with the small fees involved here they wouldnt have a problem if none of it was paid back. As long as it is on the initial disclosure documents, there is no issue. I suggest you check those to see if they are on there.

isayoldchap

Well it's on LAO website that they make a £35 charge.It however doesn't say
you will still be charged if your policy goes to underwriting and then you decide not to proceed.
I would think alot of people wouldn't know that.

About the IFA comment...sorry you are right it would not be fair.Maybe the best solution would be to approach the insuring company direct to see if they will accept you on cover after underwriting.