Insurance Policies - 'Advised'

[RastaManBob]

Hello!

I've put this question in the 'Home and Garden' section as the question relates to some of the decisions required when purchasing a home and so I'm sure I'll get the most relevant answers here.

I used a mortgage broker to arrange my mortgage application. Since, the broker has advised on other insurance policies (including, but not limited to, life insurance). As an end-user can somebody tell me what advantage an 'advised' policy brings, particularly if I know exactly what sort of cover I want?

I'm happy to purchase directly, or through a discount broker, in order to get slightly better premiums however I'm aware these will no longer be advised - It's clear an advised policy comes at a cost and I'd like to understand what you receive for that cost. Is, for example, a policy any more likely to pay out because it is advised? If the policy does not pay out would you have recourse through an advised policy?

Thank you.

 

[RastaManBob]

Thank you for your reply - It's been really helpful! I think I'm happy with what product to buy and the numerous options. The only decision I need to make is regarding trusts but as I understand it I can put the policy into trust at any time in the future and so I may delay considering that until there is a little less going on. Thank you!

 

[RastaManBob]

I don't think we would want absolute/bare given that we might have more children in the future. As a result, it would mean using a discretionary trust but the idea of it being 'outside of my control' worries me a little. The insurer does have a stock form to fill in on their website but I think I'd want further advise which I imagine would be costly. In theory if I passed away I would want my wife to receive the payout, and vice versa. If both of us pass away I'd want the money to be for children but it's not clear how to ensure this happens. Additionally, if the worst were to happen and both my wife and I passed away with young children I suppose we might choose for a future carer to have access to the payout in order to support his/her upbringing. I'm just concerned about putting something into trust without knowing how to take care of the above and in the process lose control over the policy. Still, I'm sure the above is pretty standard stuff for most parents life insurance...