We have an existing client that we set up their Life Insurance and Income Protection for 2 years ago.
They are in the process of purchasing a new property and have done their mortgage through the estate agency-based mortgage advisor, who they are purchasing the house from.
Naturally the estate agency-based mortgage advisor has tried to sell them Life Insurance and Income Protection, which our client has forwarded to us for review.
The paperwork confirmed the estate agency-based mortgage advisor is tied to one insurer, which means the premiums are heavily increased from the standard premiums we have access to.
They were quoted £29.35 for the Life Insurance and £47.12 for the Income Protection.
However, for the identical cover with the same insurer, they should have been quoted £20.52 for the Life Insurance and £32.91 for the Income Protection.
This means the estate agency-based mortgage broker is charging them 43% over the odds.
We appreciate and understand it may seem easier to do your Life Insurance, Critical Illness Cover or Income Protection insurance through a mortgage broker or even a bank or building society, however there’s a very high chance you’ll be paying too much for your cover and it may also not always be with the best insurer for your circumstances due to the fact they are tied.
In this case they could have been paying 43% too much.
Thankfully they were already clients of Pendragon Protect, trusted in us to come back and asked us to review the cover and premiums, otherwise it could have been very costly for them.
If you have Life Insurance, Critical Illness Cover or Income Protection set up through a mortgage broker, bank or building society, would you be happy if you knew you were paying over the odds?
We are happy to review any existing policies you have for Life Insurance, Critical Illness Cover or Income Protection as there is a very good chance, we can get you better cover and premiums.