Do I have to pay the Life Insurance Broker a fee?
No. The insurance company will pay commission to the
broker.
For business carried out via the Internet, brokers get paid
commission by the Life Insurance Company. Commission is the most cost
effective solution for you, the client, as there is no VAT charged on
commission. If you were charged a fee, the broker would have to add on
VAT.
The Financial Services Authority generally prefers the idea
of fees rather than commission but acknowledges that in some situations,
like the Internet, this is not practical.
All Insurance Brokers, including those operating on the
Internet, will be regulated by the Financial Services Authority by early
2005.
Other relevant questions…
Why
is Life Insurance such good value if I purchase online?
I need
an insurance quote immediately. What do I do?
Is Life Insurance for me?
What else do I need to know about Life Insurance?
How do I get a Life Insurance Quote?
How do I choose the right policy for me?
What if I need cover to be arranged quickly?
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How are premiums calculated?
What if I have to make a claim?
Do I need Mortgage Life Insurance instead?
Should I consider Critical Illness cover?
What other sorts of Insurance should I think about?
How do I make a complaint?
What do I need to know about the law and Life Insurance?
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