Comparisons with our competitors

Whereas our competitors compare themselves to the easy targets; the banks and insurance companies,(we think our clients know better than to go direct to these anyway) we compare ourselves to those who market themselves as the cheapest. They will also tell you that they will match our figures, but in practice they don't because we are the only company to charge a fee and reinvest ALL of the commission on ALL products wherever possible.


Term Assurance

Level Term Assurance of £200,000 for a couple age 35 next, non-smokers, for 25 years.

BrokerPremiumProviderOther costsTotal payable
Cavendish Online £18.20 Aviva £35.00 fee £5,495.00
LifeSearch £27.00 Aviva   £8,100.00
LifePoliciesDirect £27.00 Aviva Plus £54.00 cashback £8,046.00
Tesco £22.68 Aviva*   £6,804.00

Tesco is "tied" to Aviva, so even if another company is cheaper, they won't be offering that company.

Level Term Assurance including critical illness cover of £200,000 for a couple age 35 next, non-smokers, for 25 years.

BrokerPremiumProviderOther costsTotal payable
Cavendish Online £71.20 Aviva £35.00 fee £21,395.00
LifeSearch £97.57 Scottish Provident   £29,271.00
LifePoliciesDirect £97.57 Scottish Provident Plus £54.00 cashback £29,077.00

 

Stakeholder Pensions

Almost all new personal and stakeholder pensions are single charged i.e. they only have an annual management charge which is 1% under normal circumstances. When we rebate all of the commission the effect is to reduce this charge. The amount seems small, but the effect is significant as you can see below.

The quotation is for a contribution of £250pm gross over 25 years into the Standard Life With Profits fund showing with and without commission. The normal stakeholder pension annual management charge is 1% but this is reduced to 0.8% in the with profits fund.

BrokerAnnual management chargeFund at 9% growth
Cavendish Online 0.52% £263,000.00
Full commission 0.8% £251,000.00

 

Investment Bonds (including With Profits Bonds)

The following is based on a Prudential With Profits Bond investment of £25,000 over 10 years with no income taken. The assumed growth rate is 6%pa. and the comparison is between Cavendish Online (nil commission), a full commission broker and TQ Direct's commission based discounts.

BrokerFund @ 6%pa growthCommission or fees
Cavendish Online £42,900.00 £25.00
Full Commission £40,200.00 £1,560.00
TQ Direct £41,700.00 £160.00 plus 0.5% pa renewal commission

 

ISA investment

The following is based on an M&G ISA investment of £7,000.00 over 10 years. This particular commission option does not pay renewal commission, although the Annual Management Charge remains at 1.5%.

BrokerFund @ 7%pa growthCommission or fees
Cavendish Online £11,600.00 £20.00
Full Commission £11,100.00 £297.50