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
 

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Where can I find help?
To help you find your question, we have organised our FAQ’s into relevant groups. Answers to all sorts of more general questions are found in the General Questions section.
What is Life Insurance?
Life Insurance is also known as Term Insurance.
Life Insurance - why do you need it?
You may want Life Insurance to provide some financial protection for the family or to cover the payment of an Interest Only Mortgage.
Is there any investment value in your policy?
No. Once the term is completed the policy simply ends. It’s a bit like car insurance!
Should you consider Critical Illness cover instead?
If you have no dependants or already have Life Insurance, you should consider Critical Illness Insurance instead of Life Insurance.
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

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