The daughter of one of our existing clients, Ms Cox and her partner Mr Hewitt approached us about some mortgage protection they had taken out several years earlier. They were not unhappy with it. They simply wanted to know whether they were paying more than they needed to.
The situation the clients were in
They held two policies between them:
- A joint mortgage protection plan, so that if either of them died before the end of the mortgage term, the mortgage would be repaid.
- Income protection for Mr Hewitt, replacing his employment income if he were unable to work through accident or sickness.
Together these were costing them £65 a month.
What they asked for
Simply this: the same or similar cover, at a lower cost.
What we did about it
Because we are independent, we were able to compare across every provider that meets our due diligence standards rather than a fixed panel. We arranged:
- Mortgage protection with an alternative provider, at a lower monthly cost.
- Income protection with an alternative provider, again at a lower cost.
- An additional amount of life cover for Mr Hewitt — something they had not asked for, but which meant that if he died, his partner would receive a lump sum on top of the mortgage being cleared, to support bringing up their children.
The result we achieved
They ended up with everything they already had, plus the extra life cover, for £58 a month. A saving of £7 a month and materially better protection — exactly what they had asked for and then some.
What it cost them in fees
Nothing. Mr Hewitt and Ms Cox chose the option of the insurance company paying us a commission for placing the business, rather than paying us a fee directly. We always set out both options and let the client decide.
Why this happens so often
Many banks and advice firms are tied to a set list of providers. We are not. That means we can obtain comparable cover at a reduced cost more often than people expect — and there is no obligation to proceed if we cannot improve on what you already hold.
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This article is for general information only. It is not personal advice and it is not a recommendation. The value of investments and the income from them can fall as well as rise and you may get back less than you invested. Past performance is not a reliable indicator of future results. Tax treatment depends on individual circumstances and may change. Fernleigh Wearden & Company Ltd is authorised and regulated by the Financial Conduct Authority, firm reference number 929372.
