Our mortgage adviser wants a letter from us to confirm we don't want protection

CLBristol83

Hi,

My partner and I are first time buyers. We've been working with a mortgage adviser who we feel has done a great job for us in sorting out our mortgage but who has also been quite heavily pushing various insurance on us- life insurance, mortgage protection etc. We did our own research and decided we prefer to sort this out ourselves. Previously we've not been too encouraging when he's told us he is getting quotes for us etc and we've never approved any of the quotes he sent us either verbally or in writing. We had two houses fall through so it's always seemed premature to move ahead with any of it.

Now, we've finally got to the point where the house looks likely to proceed and he again sent through quotes and asked us to review and approve. We reviewed, compared with the quotes we'd got ourselves and decided we didn't want to purchase the insurance he offered. My partner emailed him with this decision just stating that we didn't want to purchase protection insurance (Rather than explaining we'd sort it out ourselves). He wrote back saying that he is 'disappointed and concerned' that we don't want to get protection insurance and that since he'd already told us he would be proceeding with this for us in writing (we never asked him to) that he wants us to write and sign a formal letter confirming that we don't want the cover and understand the ramifications of this so that he can keep it on file. 

Should we be more explicit- do we owe him explanations? Do we need to provide him with this letter? His tone has felt quite pushy and rude lately and I think this is colouring how we feel about the whole interaction but it could be a very reasonable/standard request -we're not sure. Grateful for any advice.

Thanks!

Carl2510

Just don’t fall into the trap I did when using an estate agent MA and got stuck into a 4 year life insurance if I left I faced a £1000 fine, luckily I got out of it due to them Inputting wrong info. My current MA though has done me well and can’t complain.

haras_n0sirrah

We are told by our network that if people dont want cover we recommend we have to send a waiver to them and keep a copy of the sent email along with the quotes sent. It is to prevent a future situation where someone gets repossessed due to illness, death of partner or similar and a complaint turns up saying that they were never recommended cover and would have taken it had it been mentioned therefore they want their mortgage paid off by the broker. We are in a compensation culture now where people will complain they were sold something they didn't need but equally people will complain they weren't sold something it turned out they did need. We have to cover ourselves which means quotes for every client and telling them why we are recommending it and if they dont want cover then confirming we have no future liability. Just tell the advisor you have sourced your own.

dunstonh

Should we be more explicit- do we owe him explanations? Do we need to provide him with this letter?

You dont need to be more explicit and you do not need to provide him with the letter.   However, some compliance companies do recommend the adviser protects their backsides from those that refuse to take out cover to avoid a complaint coming in years later saying "my mortgage adviser didnt tell me the risks of not being insured or for how much I needed".

There is no harm in you signing this letter unless you plan to put in a fraudulent complaint some years down the road.

amnblog

One of 3 things can happen here.
1. You take the insurance recommend by the broker - you are safe, the broker earns, you broker picks up the risk of the advice

2. You decide not to get the insurance via the broker, sorting it out yourself - you will still need to get advice somewhere, the broker would like you to confirm that in writing so that if you make a mistake when sorting the insurance out elsewhere he/she is not liable

3. You decide not to get the insurance via the broker, and do nothing else - you are not safe, the broker would like you to confirm that in writing so that if your die or fall sick, he/she is not liable for any loss incurred by not taking the correct insurance

Most Brokers will ask you to sign something in these circumstances.

Any Broker that has handled a death or critical illness claim in the past, or wants the best for Clients, will 'quite heavily' push insurance

CLBristol83

Thanks all, I appreciate these comments and advice. Lots to reflect on. I appreciate it.

[Deleted User]

I won't submit a case without a disclaimer on file to state the client has rejected my recommendations and chosen not to take insurance through me.   I don't think I give the hard sell and everyone is free to make their own decisions but also I've worked long enough in this industry to see all sorts of complaints and this is one I don't want to be on the wrong end of. 

My disclaimer is generated by my system if a mortgage is about to be submitted with no protection. The system asks for the signed document to be uploaded prior to case submission 


Ignoring the tone from the broker and the words used to try sell or advise , there should be no reason to not sign a document stating you are not taking the insurance. Its a factual record of events 

ACG

Its a bit of a sales tactic used by some brokers. If they are asking you to write/sign a waiver to say you have refused it, it makes you think twice about refusing it. 

That is not necessarily a bad thing as it makes you think about it. 

I would just send an email to say you are not taking cover out through him and are happy with your decision and leave it at that, you dont need to sign anything or even write anything, so doing a sentence is more than enough. 

[Deleted User]

ACG said:

Its a bit of a sales tactic used by some brokers. If they are asking you to write/sign a waiver to say you have refused it, it makes you think twice about refusing it. 

That is not necessarily a bad thing as it makes you think about it. 

I would just send an email to say you are not taking cover out through him and are happy with your decision and leave it at that, you dont need to sign anything or even write anything, so doing a sentence is more than enough. 

I would say it serves a dual purpose to protect the broker but also force the broker to actually make a recommendation.  Plenty inexperienced brokers are just scared of asking clients to think about worst case scenarios.  By having a requirement that they have to get a letter from client confirming they gave recommendations then it would look pretty daft if they didn't even discuss it with them.

Agree that email back is fine though.  I generally just email the declaration to people and they email back to say they have read and understood.  

dunstonh

Insurance has always had to be sold.   Most people buying it on a DIY basis fail to take out adequate insurance and most of the population is under insured.  Many will get away with that but those that do suffer a claimable event will often look for someone to blame.

Cscott139

From the brief details it does sound like your broker has just sent a quote and not had a proper conversation with you about the cover which isn't great service. He should be going through your concerns and gaps in protection to help you decide what cover you feel you want to take out. I would certainly take advice about protection if I was you but maybe from someone else.