COMPARE THE COMMISSION NOT THE MARKET TO GET THE BEST DEAL
Comparison sites claim to offer some of the best life insurance deals possible – but don’t take their word for it, warns Cavendish Online.
More and more people are taking the purchase of life insurance into their own hands in order to avoid paying excessive commission to financial advisers and are hailing online comparison sites and supermarkets as the solution.
This trend is hardly surprising when the likes of MoneySupermarket are claiming to offer ‘some of the best life insurance deals possible.’ However, even when purchased online, insurance premiums will include an intermediary’s commission, which is often a considerable amount; take MoneySupermarket, who will receive commission of £561.59 for a policy with a monthly premium of just £24.77. This can hardly be ‘the best deal possible’, especially when you consider that this process provides no financial advice.
Comparison sites and supermarkets simply act as the broker; the insurance product itself is provided by the insurance company. This means that exactly the same product can be sold for a range of prices. The same Aviva policy, for example, will cost you £26.23 per month from Asda as opposed to £19.69 from Cavendish Online. The only difference here is the amount of commission each company earns.
Ian Williams, Managing Director of Cavendish Online says:
“It is impossible to justify the amount of commission charged by comparison sites, and consumers need to be made aware that this is by no means the most cost-effective route to purchasing life insurance.”
For the same non-advisory service, Cavendish Online takes no commission at all and instead charges a one-off fee of £35 to set up a life assurance policy, which means that the cost of the product is dramatically reduced. Over the term of the policy, the total amount saved can reach thousands of pounds as demonstrated by the comparisons in the table below.
For further information please contact:
Jenny Ross
jenny@cavendishonline.co.uk
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Cavendish Online is the UK's leading online fee-based discount broker of financial services products. The firm was established by Ian Williams in 2000 and is directly authorised by the FSA. Cavendish Online provides customers with the best value life assurance, pensions and investments from the country’s top financial service providers. Instead of taking commission, they charge a small fixed fee, on a non-advisory basis
Table
The table below shows quotations for the same Aviva Term Life Assurance policy
for £300,000 over 20 years for a 40-year-old male non-smoker.
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Premium |
Commission |
Savings by using Cavendish Online |
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