What does a Life Insurance broker do?

Life Insurance Brokers operate between you and the Life Insurance Company to find you the cheapest Life Insurance policy that matches your specification. They then organise the insurance on your behalf.

STEP 1 of 2
Type of cover
Life Insurance       Mortgage Life Insurance
 
Cover Level (£)

Number of years
Do you want:  
Critical illness cover
Family income benefit
 

Hot Topics

Does Life Insurance have to be associated with a mortgage?
No it does not. Many policies are used to provide additional financial security for the family.
Should you include Terminal Illness Insurance?
You probably won’t need to - most policies include Terminal Illness cover free of charge on all Life and Critical Illness policies.
What is the Difference Between Critical Illness Insurance and Terminal Illness insurance?
Critical Illness Insurance is much more comprehensive than Terminal Illness cover.
Should the cover be on joint lives or separate lives?
It may be better to buy separate policies.
Can you have different levels of cover on a joint life policy?
Yes you can - but it may be better to buy separate policies.
Most brokers receive commission from the insurance companies for selling insurance policies, although some may charge fees as an alternative.

The Financial Services Authority has said that it prefers the concept of fees rather than commission. However, VAT is charged on fees whereas there is no VAT on commission. So, on a like for like basis, commission works out cheaper. For this reason, the commission system is the norm for brokers operating through the Internet.

All Insurance Brokers are now regulated by the Financial Services Authority. If you want to read more about this we suggest you visit the Financial Services Authority’s web site at www.fsa.gov.uk

Frequently Asked Questions related to the above topic.
Click below if you wish to read them: -