How do LifeSearch make money if advice is fee-free
When you make the decision to protect yourself and your loved ones with a product like life insurance, critical illness insurance or income protection insurance, usually the first question to pop into your mind is, ‘right, now how do I actually go about buying one of these policies?’ There are a number of routes you can take. Firstly you can approach your chosen insurer directly, secondly you might decide to use a price comparison website, and thirdly (this is our personal favourite) you could get some professional protection advice.
Why is the third route our favourite? Well, firstly, LifeSearch is a protection advice business, so you could say that we’re slightly biased there. But secondly, and more importantly, we think that getting advice around products like life insurance, critical illness insurance or income protection insurance is probably one of the best things you can do. Why? Well getting professional advice means that you get the right insurance product to perfectly meet your needs, at the best price, without all the hassle of researching the insurance market yourself.
What’s also important to know, is that our advice is fee-free*. What’s not to love about that?!
Our advice is fee-free, because there is no obligation to purchase through LifeSearch, or at all. If you do choose to go ahead through LifeSearch then we do earn a fee (a commission)*, which you can find out more about at the bottom of this article.
Okay, so you might be thinking, ‘hang on, what does this advice process actually involve and how can it be fee-free in the first instance?’ Good question, let us explain all in this guide.
- What is protection insurance advice?
- Do I need protection advice for my life insurance?
- Is protection advice really fee-free*?
- I want to know more…
Protection advice is provided by insurance professionals. They’re able to recommend specific insurance products to you, based on your needs - it’s a personalised service. At LifeSearch, we specialise in products like life insurance, critical illness insurance, income protection, mortgage protection, family income benefit, over 50s life cover and business protection.
We’re the biggest and most well known life insurance adviser in the UK. Established 1998, we have helped to protect in excess of 650,000 families from horrible things like death and illness.
In most cases we would say yes! But there may be situations where you don’t. For example, if you already know exactly what insurance you need - which product, how much cover and how long you need to be covered for, you could use a price comparison website to find the insurer which offers the protection you need at the cheapest price. Equally, if there’s a certain insurer that you really like - perhaps you’ve had great service from them in the past, you could choose to contact that insurer directly and apply for a policy with them.
There are, however, a number of situations when protection insurance advice might be a good option for you:
LifeSearch protection advisers will take time to get to know you and your family’s financial protection needs. They’ll be able to recommend the right product for you based on your financial situation and longer term financial goals.
Don’t worry, not many people do! But that’s where protection advisers can help. The team at LifeSearch understands the insurance market inside and out. They know which insurers offer what and at what price. Plus, because we’re the UK’s biggest protection broker we have strong relationships with all of the main insurers and can often get cheaper life insurance deals for our customers.
Getting life insurance can be a little trickier if you have, or have had, any health conditions. Also, if you have any illnesses in your family, things can get complicated. This is where protection insurance advisers come into their own. The team at LifeSearch knows what medical questions insurers will ask when you apply for a policy. They also understand how your protection premium - the price you pay for insurance, may be affected by your condition and will help you to find cover at the most affordable price.
If you have health concerns and would like to explore your insurance options, request a callback from one of our trained protection advisers who will be very happy to help!
For the type of advice we offer at LifeSearch, which is focussed specifically on protection insurance products, the answer is yes! And remember, you don’t have to buy from us - even after we’ve spoken with you and provided options and advice.
So how do we make money? Let us explain.
Instead of charging you as the customer for our advice, LifeSearch receives a payment directly from an insurer when they sell a particular insurer’s policy. It’s basically a commission we receive, which is included in your monthly premium. So, yes; you could get it cheaper by going directly to the same insurer, but not always - and the added cost (the commission) is usually negligible over the duration of your policy compared to the piece of mind that you’ve been given the best advice along the way.
Extra services for you, included in your premium.
On top of the advice around personal and business protection insurance, we also offer all of our customers access to a range of free support, including LifeSearch Care** and a dedicated claims team to fight your corner, if ever you or someone on your behalf ever did need to make a claim on your policy.
We also offer all of our customers the ability to write their protection policy into trust for free - a useful thing to do if you’re worried about things like inheritance tax. You can contact our dedicated trust team on 0800 316 3166 to find out more about Trusts for when you're an existing customer.
And finally, if you haven’t created your will yet, and would like to, we’ve teamed up with Farewill to help you get your will sorted.
We’re here to help. Call us on 0800 316 7253 or request a callback from one of our expert protection advisers who will happily answer any questions you have. We look forward to chatting with you soon.
*Protection advice is fee-free to consumers and without obligation to purchase a policy, but if you do purchase a policy through LifeSearch, we are paid a commission by the chosen insurers, which means that sometimes the cost of your insurance policy could be higher, compared to if you went directly to the insurer. For more information, please call us.
**LifeSearch care is available after 12 months as a LifeSearch customer.
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