financhel advisers

tomchar12

Hi not sure if i'm in the right place? i'm new to this!
I need some advice about financhel advisers, i have used one for a while and am in the process of moving, i have used a different adviser as they charge no fee. The life insurance policys we have are no longer going to be efficient these were arranged by the other financhel adviser so they are getting paid a commission, i have now been advised by the new adviser i can take out a new policy which is cheaper, i'm under the impression that the other adviser could ask for money because the policy has been cancelled early and they will have to pay back commission paid to them?
any advise?? x

dunstonh

You would need to check the terms of business you have with the previous adviser. Clawbacks can be levied if you agreed a fee in the first place and used the commission to pay the fee.

Fee option or customer agreed remuneration are the best ways to pay for your advice with an IFA.

littlejaffa

As in idea, I've just got a quite for legal & general life insurance (death or terminal illness) and the yearly price is less than quidco's cash back.
Qudco are basically paying me to have it so i figure i've nothing to loose! (have full cover elsewhere before anyone gets worried this is just a bonus!)

On the fee's front, the FA who arranged our first ever life insurance policy many many years ago still get £6 per year commision from the LA company. COmmission is an incentive for them to recommend company A rather than company B, so they get higher comissions.

I've always found it cheaper to get top up policy's than scrap everything and start afresh so I'd be dubious that this cheaper policy you've been offered covers you for as much as before. But, is there anything to stop you staying with the old company who are moving? And ask them about the better deal you've found?

dunstonh

COmmission is an incentive for them to recommend company A rather than company B, so they get higher comissions.

Evidence please?

I would have thought that you seeing the provider research listing the companies in price order would have been the incentive to pick the cheapest provider (or next best if cheapest isnt offering the best features for the price). It's a bit hard to pick highest commission payer when your research evidence shows that one to be the 10th most expensive.

L&G are not a big commission payer.

I've always found it cheaper to get top up policy's than scrap everything and start afresh so I'd be dubious that this cheaper policy you've been offered covers you for as much as before.

That certainly is not the case. It depends on when you took yours out, the sum assured and the term. It also depends on the distribution channel you used before. For example, L&G through a bank is far more expensive than L&G through an IFA.