Mortgage Brokers and their insurance policies

macs-swfc

Ok,

I think its easier if i just explain briefly what the policies he set are for and what I've looked at.

Life Insurance with Friends Life for £300k - £42.01 (Advisor)
Life Insurance with Legal & General for £300k - £32.29 (Me)

Building and Contents
Contents for £30k and buildings for £188k, £50 excess - Aegeus - £35.39 (Advisor)
Contents for £30k and buildings for £200k, £200 excess £3000 personal valuables cover - Budget Insurance - £14.18 (Me)

Personal Income Protection
£1600 per month after 90 days sick or injured for 24 months - Friends Life - £34.92 (Advisor)

£1600 per month after day one sick or injured for 12 months - First Call Payment Protection - £19.88 (Me)

After working that out the savings are actually closer to %50 not £70 so apologies.

Thanks for all of your help, its very impressive as a new user!

stephenni1971

If its pure life cover only then F Life is normally in the top 2 most expensive policies.

Also if he is tied to F Life then you may be better sourcing cover elsewhere as hehas no other options.

Also if its to cover a mortgage is your mortgage for £300K and is the policy decreasing?

ACG

First thing first, the only policy you have to have is buildings insurance and you can do that through your lender, your broker or yourself. Where you get this policy from will have no impact what so ever on the mortgage.

Your broker could have "rated premiums" which could be accounting for the different, but £70 difference doesnt seem right if that were the case. If you said £10-20 then it would be more understandable.

I suspect there is some sort of difference in the policies you are being quoted for and you are taking out yourself.

Go back to them with what you have found, they will no doubt find the reason for the difference in a matter of minutes. There literally could be one of about 10 reasons as to why its cheaper. Which could be the difference between getting the payout you expect and leaving you up a creek without a paddle.

Personally I would rather have Ageas (now known as AIG) or Friends life policy over Zurich or L&G - if nothing else, best doctors is awesome! But in sayiing that, im not sure I would be prepared to pay £70 a month for it.

If the cost your broker has quoted is too much - tell them. Why would you commit to a payment that is too much. Also tell them sooner rather than later - some brokers want to clawback any lost commission from cancelled policies so ensure you sort this out before it goes in force.

macs-swfc

Ok, again, thanks for all your help, it seems that i need to contact my advisor.
Ill give him a call on Tuesday and try and iron it all out. Its a bit of a minefield, i didn't realise it would be.

Thanks again.

Mortgage_Mark_2

I'll point out the thing that seems to have been missed...

Self employed...Income protection.... you SERIOUSLY need to make sure that whatever policy you're looking at will cover the amount you want/need based upon your figures, there may be a reason by Friends Life are a better 'fit' than First Call (who I've never heard of?) other than just that he can only look at two providers.

As an example, some providers look only at the last set of accounts, other two or three, but the %age of gross income that they will payout varies from provider to provider, so in theory you could put something in place for £1,600 a month, but if your net profit as a sole trader was £25,000 (for example) you wouldn't get £1,600, you'd probably struggle to get more than £1,200 or so.

Speak to the broker about your reservations, tell him honestly what you've found and ask him to compare these to the policies that he's recommended. If he's worth his salt, he will tell you that you've found a better deal if you have.