Lifesearch - dodgy conduct?

dunstonh

My issue is that many other products are sold in similar ways and I've never been held to this sort of condition previously.

Probably most of them nowadays given that whole chunks of advisory business are now on fee basis and not commission.

They are making money on an opportunistic basis from me and without the threat of clawing back their commission if something goes wrong the arrangement seems a fair deal.

They are not because it should be disclosed in advance and you agree to it. I do have a few issues with the company website (it says its advice is free for example -its not. its paid by commission which is paid for by an increase in the premium you pay). However, the retention if you create a clawback event is fair if disclosed.

thescouselander

dunstonh wrote: »

Probably most of them nowadays given that whole chunks of advisory business are now on fee basis and not commission.



They are not because it should be disclosed in advance and you agree to it. I do have a few issues with the company website (it says its advice is free for example -its not. its paid by commission which is paid for by an increase in the premium you pay). However, the retention if you create a clawback event is fair if disclosed.

I disagree, the clawback term is not fair. I'm happy to work everything out for myself and this company has waded in with their "advice" without my asking. In my opinion the company tried to upsell other products in addition to what I knew I wanted so the only service they are providing which might be of value is a search to find the lowest premium. The problem is I don't know if they have searched the whole market or a specific panel of insurers because they won't give me their terms nor can I determine if their advice is correct because they are witholding information on the recomended policies. For that reason the value to me of their service is mimimal and not someing I would be prepared to hand over money for. If they want to make some commission by acting as a middle man then fine but I'm not paying.

I feel the company has not been straight with me which is bad when trying to buy an import product costing thousands of pounds.

I can only say this company is best avoided. They seem like cowboys to me. I'd rather pay up front for proper advice should I require it.

weighty1_2

thescouselander wrote: »

I disagree, the clawback term is not fair. I'm happy to work everything out for myself and this company has waded in with their "advice" without my asking. In my opinion the company tried to upsell other products in addition to what I knew I wanted so the only service they are providing which might be of value is a search to find the lowest premium. The problem is I don't know if they have searched the whole market or a specific panel of insurers because they won't give me their terms nor can I determine if their advice is correct because they are witholding information on the recomended policies. For that reason the value to me of their service is mimimal and not someing I would be prepared to hand over money for. If they want to make some commission by acting as a middle man then fine but I'm not paying.

I feel the company has not been straight with me which is bad when trying to buy an import product costing thousands of pounds.

I can only say this company is best avoided. They seem like cowboys to me. I'd rather pay up front for proper advice should I require it.

So apart from selecting the cheapest company LifeSearch hasn't offered you any advice in terms of the length of the policy, the sum assured, writing the plan into trust etc etc etc?

In regards to them offering their advice without being asked, surely you completed some form of online quote request form? Unsolicited calls aren't allowed within financial service firms and being a former employee of LifeSearch (albeit 5+ years ago) they never used to conduct business this way.

As with all large organisations the worth of the adviser is dependent upon who picks up the phone and calls you first, however, compared to DIYing the cover yourself LifeSearch are normally a much better route to ensure you get the right cover. For example, the additional products they were trying to sell you would probably be in your best interest to have. Whether you want to pay for them is another matter but as an advisory insurance broker they should be pointing out options such as long term income protection plans and critical illness cover as this is good advice.

dunstonh

I disagree, the clawback term is not fair.

Why?

I'm happy to work everything out for myself and this company has waded in with their "advice" without my asking.

So, you never engaged with them and yet you have ended up with a policy?

In my opinion the company tried to upsell other products in addition to what I knew I wanted so the only service they are providing which might be of value is a search to find the lowest premium.

An advice service is about telling you what is best. Not you thinking you know best. If you wanted DIY then you should have used a DIY service.

The problem is I don't know if they have searched the whole market or a specific panel of insurers because they won't give me their terms nor can I determine if their advice is correct because they are witholding information on the recomended policies.

its life assurance. Its very easy. Are you dead or alive?

r. If they want to make some commission by acting as a middle man then fine but I'm not paying.

You are paying. Commission is not free.

kingstreet

I think the OP really wants one of those execution-only sites where they rebate all the commission in the form of reduced premiums and only charge about £30.

kingstreet

Cavendish or Moneyworld would be two, according to this;-

http://www.moneysavingexpert.com/insurance/cheap-life-insurance

thescouselander

weighty1 wrote: »

So apart from selecting the cheapest company LifeSearch hasn't offered you any advice in terms of the length of the policy, the sum assured, writing the plan into trust etc etc etc?

No, I only want to cover my mortgage payments and as it happens I know how long this term is and what my liabilities are because I'm not an idiot - it's not rocket science. I also know it's not big deal to get a policy written in trust as long as I ask for this up front.

weighty1 wrote: »

In regards to them offering their advice without being asked, surely you completed some form of online quote request form? Unsolicited calls aren't allowed within financial service firms and being a former employee of LifeSearch (albeit 5+ years ago) they never used to conduct business this way.

Again no. I searched for quotes on comparethemarket.com who passed my informaton onto Lifesearch who then contacted me. I didn't expressly seek out advice from Lifesearch

weighty1 wrote: »

As with all large organisations the worth of the adviser is dependent upon who picks up the phone and calls you first, however, compared to DIYing the cover yourself LifeSearch are normally a much better route to ensure you get the right cover. For example, the additional products they were trying to sell you would probably be in your best interest to have. Whether you want to pay for them is another matter but as an advisory insurance broker they should be pointing out options such as long term income protection plans and critical illness cover as this is good advice.

Not at all. I already get a generous benefits package from my employer and many of the products pushed by lifesearch duplicated this existing cover - this is the stuff of mis-selling. I'm just after a top up to cover the delta between the work provided benefits and my liabilities.

starrystarry

I don't understand what the problem is. If you know exactly what cover you want, you didn't ask for or want Lifesearch's advice and you think they're dodgy, why not just tell them you're not interested?

thescouselander

starrystarry wrote: »

I don't understand what the problem is. If you know exactly what cover you want, you didn't ask for or want Lifesearch's advice and you think they're dodgy, why not just tell them you're not interested?

That's exactly what I've done.