We’re lifting the lid on the biggest life insurance swindle in the UK.
No life policy is built in with, or connected to, a mortgage.
They are completely separate financial products. It’s illegal for a mortgage or financial advisor to imply that you need to take out your life policy with them to secure or get more value from a mortgage deal. The law protects your right to use a whole of market insurance broker to find a policy that is really best for you. You can switch a life policy at any time; it can’t affect your mortgage in any way.
Every 3 years you should check out what’s available.
A wide array of EU directives and competition between providers means that policy prices are mostly cheaper than five years ago.
Mortgage advisors make most of their money from life insurance commissions.
Commissions on life insurance are much higher than on mortgages, so most aim to sell every new client life insurance, whether they can offer them the best on the market or not. Some even refuse clients who want to insure elsewhere, because they can’t be bothered processing the application for less commission.
They often can’t search the whole market, so can’t offer the best policy.
Many advisors are tied to just a few of the UK’s insurers, so they can only offer policies from these insurers, regardless of their client’s needs.
They know that stressed out buyers will trust them.
People applying for a mortgage are increasingly desperate to be accepted, and are relying on mortgage approval for their move. They therefore are very easy to sell to, when presented with a quick deal, by the person they’re eager to be accepted by.
As Commercial and Referrals Director at Vital Insurance Services I deal with a lot of different businesses, from a huge range of industries.
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