November 4, 2006
How (and where) To Buy Life Assurance - Step 5
Direct to Company
If you know which company you want to apply to you can call them directly for a quote, and then send them the completed application.
Please be aware if you go down this route, you will not necessarily get a cheaper premium than if you go through an adviser. In addition, you will receive no redress in the future if you felt your decision was incorrect at the time (as you did not receive any advice).
Internet/Supermarket
You can do a search online for life assurance and either apply through a broker/intermediary or direct with the company. Again, if you do not receive any advice you will not be covered by the Financial Services Compensation Scheme (FSCS).
Tied/Multi-Tie Adviser
If you deal with this type of adviser they will be able to offer you a quote from either one or a limited number of providers. If you receive advice you will be covered by the FSCS.
Independent Financial Adviser
An IFA has the technology available to source any financial products from the whole marketplace. They will also be able to ensure the policy(ies) is set up with the correct trust. In addition, if you have selected critical illness cover, they will be able to do a ‘qualitative’ audit on all plans available in the market.
Again, if you receive advice from an IFA you will be covered by the FSCS.
How to Pay for Advice
As the purchase of life assurance is a straightforward transaction, you can either allow the financial adviser to retain the commission that they receive from the provider (although you should check the adviser’s terms of business), or the adviser may allow you to pay a fee. With the latter, many advisers will then refuse the commission from the provider and process the application on nil commission terms, meaning that you’ll pay less every month for the policy.
In Summary
Filed under Protection by Ray Prince
