Confused friend

sparrabeth

Hi

Hoping you guys can help

My friend has just bought her 1st house and was given the hard sell by the mortgage broker. He has convinced her to buy life insurance, critical illness cover and income protection as well as the usual building & contents.

This has added a whopping £110 to her mortgage payment.

I think she's been had personally and that she will get these products much cheaper elsewhere, but she has no idea where to start or what exactly she needs.

She's late 20s and single - what does she really need from insurance?

Ta muchly
x

dunstonh

I think she's been had personally

On what grounds? That the adviser gave best advice as any adviser should and in accordance with the FSA guidelines?

that she will get these products much cheaper elsewhere

That is quite possible. If she hasnt paid on fee basis then the price of the product will include the cost of advice. If she used an insurance rep and not an IFA then she will be paying more. That doesnt make it wrong though.

but she has no idea where to start or what exactly she needs.

That would depend on her needs.

She's late 20s and single - what does she really need from insurance?

Buildings and contents
Permanent Health insurance
Mortgage payment protection
Critical illness cover

She will need all the above although PHI and MPPI can be used collectively and in some cases PHI will replace the need for an MPPI.

£110 sounds like a lot considering her age but that depends on her health and where she is living and what terms are required.

sparrabeth

dunstonh wrote: »

On what grounds? That the adviser gave best advice as any adviser should and in accordance with the FSA guidelines?

That strangely enough all products were with the same company and that he put a lot of pressure on her, saying that other companies products never paid out and that comparison websites were being investigated for misleading people so she should never use them.

dunstonh

Sounds like it is an insurance salesmen and not a financial adviser. FSA proposals for next year will prevent sales reps from using the word "adviser" in their title as the waters have been muddied between advice and sales.

Nobody should see a tied insurance rep. You are just asking to be sold expensive products and you need to understand that you will not be getting the best advice.