Life Assurance and Income Protection Questions

helojones

Hiya


I’ve read (and understood - I think!) Martin’s article on life assurance – I’ve had some pretty good quotes through Cavendish and will probably apply through them or the motley fool site. Are there any brokers that you pay a one off fee to, instead of the regular commission (as with Cavendish – if I understand the article correctly) for Income Protection? I’m now on the look-out for a good deal on that – I’ve had some good quotes through various brokers but I don’t fully understand the fee/commission part and don’t want to end up paying loads more over time. If I go straight to a provider – how does that affect the fees/commission?

Both my partner and I have income protection cover through work that would pay 2/3 salary if we couldn’t work (in our current role I think, but I need to check the small print)due to illness – until we could work or until retirement. I keep reading that 2/3 of your salary is the maximum you can cover yourself for with IP insurance – is this the case? If so I guess that means we’re as covered as we can be. If not, is it worth taking out a small amount of additional cover?

Huge thanks in advance for any help anyone can offer
Thanks
Helojones

dunstonh

Are there any brokers that you pay a one off fee to, instead of the regular commission (as with Cavendish – if I understand the article correctly) for Income Protection?

All IFAs must offer a fee option. However, in the case of PHI, with it being a relatively low profit product, you may find the fee is the more expensive option.

If I go straight to a provider – how does that affect the fees/commission?

most providers dont transact direct with the public nowadays but those that do usually keep the commission for themselves.

I keep reading that 2/3 of your salary is the maximum you can cover yourself for with IP insurance – is this the case?

Govt doesnt want you to be better off ill than if you were working.

helojones

Hiya

Thanks so much for replying - much appreciated. So if I'm right, with the IP we both have with work - we can't/shouldn't have any further IP cover? If I'm wrong and the cover we have through work isn't as comprehensive as I think, I should look at the commission and fee brokers as the fee option may actually cost more?

One last question, I just got the best quote for LA so far - with Legal & General through the Motley Fool website (broker I think is Direct Life & Pension) - it says on the site that this is a non commission service - so I assume I pay an arrangement fee and as with Cavendish, the commission is re-invested, which works out best in the long term for LA. Not 100% sure I understand the commission vs fee options.

Thanks!!
helojones