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  • FIRST POST
    • info_maniac
    • By info_maniac 12th Jun 19, 9:04 AM
    • 114Posts
    • 9Thanks
    info_maniac
    Mortgage broker arranging life insurance
    • #1
    • 12th Jun 19, 9:04 AM
    Mortgage broker arranging life insurance 12th Jun 19 at 9:04 AM
    My mortgage broker has offered to arrange level term life insurance for me and my partner (joint policy - fixed term).

    It is being offered a no fee basis so I am assuming that he will be getting commission from the insurance provider.

    I have been given only two quotes - Aviva and Vitality and have been asked to choose between them. he also said that in the event of a claim he can help myself (or my partner) with filling in the claim forms and submitting them to Aviva or Vitality.

    I am an existing Aviva customer (personal pension and motor insurance) and am possibly eligible for an existing customer discount with them. I got the discount on my motor insurance as I had personal pension with them. I am also planning to take my home insurance cover also from them.

    When I asked my mortgage broker if I take the life insurance policy through him - Will I get the existing customer discount, he says that no I won't be getting the discount. But if I go direct with Aviva he won't be able to help myself (or my partner) with the claim forms in the event of a claim.

    Also, I did some online research and some website show that Aviva's claim payment percentage is 99% whereas Vitality's claim payment percentage is 'not published'. Can someone please give me advice on the above and the comparison between the two providers.
Page 1
    • info_maniac
    • By info_maniac 12th Jun 19, 9:34 AM
    • 114 Posts
    • 9 Thanks
    info_maniac
    • #2
    • 12th Jun 19, 9:34 AM
    • #2
    • 12th Jun 19, 9:34 AM
    Also, I have been told that if I go through the broker, I can get "Aviva Global Treatment" policy for £4 per life insured (so £8 per month for me and my partner).

    I am told that "Aviva Global Treatment" add-on policy is not available if I go direct with Aviva.

    The cover is provided by "Best Doctors UK Limited":
    https://www.aviva.co.uk/adviser/documents/view/al99070c.pdf
    https://www.aviva.co.uk/adviser/documents/view/pt15775c.pdf
    • engineer amy
    • By engineer amy 12th Jun 19, 10:23 AM
    • 744 Posts
    • 1,277 Thanks
    engineer amy
    • #3
    • 12th Jun 19, 10:23 AM
    • #3
    • 12th Jun 19, 10:23 AM
    Its not difficult to get a quote directly from Aviva and see how it compares with the Broker's quote. If it is significantly different for the same cover, then you should probably go directly.


    If there is not a significant difference, then you need to consider how much 'value added' is offered by the broker filling in the forms? Are you relatively confident/competent at admin type tasks that you would be comfortable and able to do it yourself? Or consider that in the event of needing to claim, one of you may be too ill or recently bereaved (with the product being life insurance) and might need assistance.


    The global treatment add on - is it useful to you? does it include any benefits that you might use or be eligible for? only you can decide if it is worth it.


    I haven't dealt with Aviva so cant comment on their service, but I have dealt with vitality for company health and travel insurance for a large number of employees, and their claim procedure is very straightforward and never had anything rejected. It may be different for life cover though.


    There is no harm in you doing some research on the comparison sites and seeing what other companies can offer and their price - even just to judge whether your broker is getting you a good deal
    Mortgage = £113,495 (May 2009) £67462.74 Jun 2019
    • ACG
    • By ACG 12th Jun 19, 11:23 AM
    • 19,524 Posts
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    ACG
    • #4
    • 12th Jun 19, 11:23 AM
    • #4
    • 12th Jun 19, 11:23 AM
    Best Doctors global treatment is for me an absolute no brainer.

    We had to take my daughter (2 years old) to hospital last week. The doctors seem fairly confident they know what the issue is and it will sort itself out in time. However, I am able to send off her reports to get a second opinion on both the diagnosis and treatment.

    It is one of the reasons we have gone single tied to Aviva for protection insurance, I like to believe in what I sell.

    As for claim statistics, life insurance is life insurance. Assuming you have been honest on the application you are either dead or you are not, you would expect most claims to be paid out.

    As for whether you should go direct or not, I suppose you could ask them to reduce their commission to match the direct premium or you could see value in the support you would get for you and your partner at what would likely be a stressful period.

    I am not saying you should go direct or via the broker, that is for you to decide on the cost front. But if Global treatment is only available via broker then I think that would sway it for me personally, but that is me now I have a child. Pre children I would have been all for saving a few quid.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • Weighty1
    • By Weighty1 12th Jun 19, 11:52 AM
    • 606 Posts
    • 311 Thanks
    Weighty1
    • #5
    • 12th Jun 19, 11:52 AM
    • #5
    • 12th Jun 19, 11:52 AM
    The Aviva Global Treatment is such good value for money at £4.00 per month each. I've had clients pay £15/month MORE for their critical illness cover so that they could have it with Aviva and THEN pay the extra £8 to include Global Treatment. I see too many gofundme pages set up to help people get treatment for this cancer or that cancer overseas. This avoids it completely.

    One thing I would say though, why is the adviser recommending level term cover? Are you taking an interest only mortgage on?

    Vitality aren't a bad company, however, they have numerous plan types, many of which will increase in cost if you don't engage with the Vitality Healthy Living Programme. This puts me off recommending them a lot of the time as circumstances can always change which could prevent you from going to the gym and accruing points or similar.
    • Carl2510
    • By Carl2510 13th Jun 19, 10:32 PM
    • 38 Posts
    • 2 Thanks
    Carl2510
    • #6
    • 13th Jun 19, 10:32 PM
    • #6
    • 13th Jun 19, 10:32 PM
    Just don’t let him tie you into a contract where you can’t cancel the insurance for a certain amount of months like mine did!!
    • dunstonh
    • By dunstonh 13th Jun 19, 11:09 PM
    • 98,597 Posts
    • 67,050 Thanks
    dunstonh
    • #7
    • 13th Jun 19, 11:09 PM
    • #7
    • 13th Jun 19, 11:09 PM
    Just donít let him tie you into a contract where you canít cancel the insurance for a certain amount of months like mine did!!
    Originally posted by Carl2510
    That isn't allowed any more unless it is for an explicit fee offset. Consumer Rights Act 2015 killed it off.
    Examples Allowed:
    £1000 fee where the commission was taken to exactly £1000 (or any excess rebated) and a clawback of £420 occurs. You are liable to pay the £420 which is considered a fair contract term.

    Examples not allowed:
    1) No fee agreed but arranged on a commission basis with a clawback clause.
    2) Clawback fee agreed but commission amount was taken in excess of the clawback fee.

    its a relatively recent change and some haven't understood it yet but unless it is for explicit fee offset then it would be an unfair contract term as the remuneration between the adviser and the insurer is a contract the policyholder is not party to and therefore cannot be responsible for an undisclosed monetary amount due to terms they had no party in agreeing.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • penners324
    • By penners324 14th Jun 19, 12:20 PM
    • 122 Posts
    • 76 Thanks
    penners324
    • #8
    • 14th Jun 19, 12:20 PM
    • #8
    • 14th Jun 19, 12:20 PM
    My broker offered mppi for £460 a year.
    A quick check on GoCompare and I got the same cover for £130 a year.
    • csgohan4
    • By csgohan4 14th Jun 19, 12:31 PM
    • 6,494 Posts
    • 4,380 Thanks
    csgohan4
    • #9
    • 14th Jun 19, 12:31 PM
    • #9
    • 14th Jun 19, 12:31 PM
    I have Aviva Income protection and the global treatment is handy , but i ditched it as I now have private health insurance as well, which would provide much more coverage for other things as well

    Personal preference, I would have been happy with Global alone too.
    "It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"
    • dunstonh
    • By dunstonh 14th Jun 19, 1:48 PM
    • 98,597 Posts
    • 67,050 Thanks
    dunstonh
    My broker offered mppi for £460 a year.
    A quick check on GoCompare and I got the same cover for £130 a year.
    Originally posted by penners324
    MPPi is an area that has massive differences between the providers. The cheapest online comparison site ones have a reputation of increasing prices the minute the economy takes a turn and they have a higher level of exclusions.

    Whilst expensive doesn't mean better, it is an area where cheap usually means poor quality.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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