Life and Income Protection advice

p777

Hi there!
My partner and I are about to buy our first house, and have been advised by our mortgage advisor to take out plans for both life insurance and income protection insurance.

The quotes that our mortgage advisor has given us are not unreasonable, but after looking online I've managed to find what appear to be the exact same plans with lower monthly premiums, in total saving around £13 per month between us.

When I informed our mortgage advisor that I’d founder cheaper quotes online, they were keen to stress the dangers of going down this route as any mistakes in setting up the policies would be entirely on us, whereas if they were to set up the policies they would be responsible if anything was setup incorrectly.

While I can see the benefit in letting them set everything up, it feels as though they might just be using our fear of setting things up wrong as a sales tactics so that they can earn their commission.

What would people advise? Should we go through them and pay extra for the peace of mind, or set things up ourselves and make a saving?

lisyloo

The advisor gave you advice on the right plans, levels, terms for you.
Now you plan on using his experience for free?
Do you not feel he/she ought to get paid for the advice you were offered?

Sure you can find them cheaper now, but would you have been able to select the correct quality companies, set the terms, level options without his advice? Without being scammed by sporgget and sylvester along the way?

I don’t think you should pay just so you have comeback. It I think you should pay because you have availed yourself of their experience and advice.

Is there a reason you don’t think their advice was worth it?
If you’d done it yourself how would you have avoided buying a poor policy or worst case being scammed?

FWIW - I don’t work in finance, just think people should be paid (unless there’s a reason not to). I have walked away from travel agents before and gone direct but when I had a justification not just because I didn’t want to pay.

Quentin

lisyloo wrote: »

Sure you can find them cheaper now, but would you have been able to select the correct quality companies, set the terms, level options without his advice? Without being scammed by sporgget and sylvester along the way?

......I think you should pay because you have availed yourself of their experience and advice.


…...FWIW - I don’t work in finance, just think people should be paid (unless there’s a reason not to). I have walked away from travel agents before and gone direct but when I had a justification not just because I didn’t want to pay.

You are missing that the OP never "availed" himself on the advisor!


The advisor was dealing with the mortgage and took the opportunity to try and sell these policies.


But this is a money saving website!


OP wants to save (a lot!) of money by shopping round - which is what this website advises!


See this from the MSE guide to buying life insurance policies:-

However, it's very easy to pay £1,000s more than you need to over the life of the policy....

lisyloo

have been advised by our mortgage advisor

I would say the OP has received advice and it appears they want to use the expertise of that advisor i.e. buy the same policies rather than do their own research.

You are arguing that because the advice was unsolicited that they don't need to pay.
If an ice cream van turns up unsolicited does that mean you don't have to pay for what you take?

OP wants to save (a lot!) of money by shopping round

I don't think that's whats happening here.
The OP hasnt said they want to check out the whole of market i.e. shop around.
They have said they want to buy the "exact same plans" that took the advisor years of training and experience to advise on.
i.e. they do want to avail themselves of the advisors advice.

This site is not about saving money by cheating people out of their livelihood when they have done the job satisfactorily (there isnt any complaint about the advice or products if fact the OP is looking to take the exact same).

I'm happy to agree to disagree with you an leave it there and let the OP decide.

[Deleted User]

I bet you buy the dress you saw in the shop even though it's £100 cheaper online...

dunstonh

When I informed our mortgage advisor that I’d founder cheaper quotes online, they were keen to stress the dangers of going down this route as any mistakes in setting up the policies would be entirely on us, whereas if they were to set up the policies they would be responsible if anything was setup incorrectly.

That is fair for them to say. We have seen countless times on this board where people have said the same as you and then found out that they had mixed up terminal illness cover with critical illness cover. Or found Beagle Street or L&G plans of lower quality (i.e. less covered).

Online would be cheaper than advised options. That is inevitable. However, you need to make sure you are considering the coverage quality as all plans are not the same. Price is not the only consideration.

p777

lisyloo wrote: »

The advisor gave you advice on the right plans, levels, terms for you.
Now you plan on using his experience for free?
Do you not feel he/she ought to get paid for the advice you were offered?

We never asked them for advice regarding any kind of insurance, they provided it entirely of their own volition. I don’t think we should feel obliged to take the plan at the price they've quoted just because they were first.

lisyloo wrote: »

If an ice cream van turns up unsolicited does that mean you don't have to pay for what you take?

No but if the same ice creams are for sale at the supermarket for a cheaper price you have every right to go and buy them there.

dunstonh wrote: »

That is fair for them to say. We have seen countless times on this board where people have said the same as you and then found out that they had mixed up terminal illness cover with critical illness cover.

Thanks for the advice, this sort of scenario would be my main concern in setting up the policy by myself.