Lifesearch to opt for outsourcing
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Lifesearch is looking at developing a specialist protection outsourcing service on a fee-charging basis for financial planners.
Chief executive Tom Baigrie floated the idea at the IFP conference. He said there are two potential models for setting up a protection outsourcing service. The first is for a financial planner to provide the protection advice but refer the client to Lifesearch to manage the application process.
The second model, which Baigrie prefers, is for a financial planner to agree the need for protection with a client before handing over the advice element to Lifesearch.
Planners wishing to take up the service would request a quote for Lifesearch to either provide the advice or just set up the cover recommended by the planner.
Fees would be paid by the planner to Lifesearch for the advice given, with a further payment if Lifesearch is successful in getting the client on risk. Planners would then charge the fees to the client. All policies would be arranged on a nil-commission basis.
Baigrie estimates the fees for advice and underwriting would range from £500 to £2,000 for successful applications, depending on the complexity of the case.
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