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An enviable position

Alison Turner Holmes – Protection marketing manager, Skandia

Skandia pledges its support to the campaign. We use only fully FSA-regulated brokers to promote and recommend the quality critical-illness and life policies we provide.

Fully regulated brokers are in an enviable position to give advice on a client’s whole financial position rather than isolating a particular need. For example, we believe that a client’s mortgage situation is relevant to their pension requirements which are also relevant to their IHT requirements, which is relevant to their long-term care retirements…and so it goes. All aspects are inter-related and should be taken into consideration while giving advice. The biggest detrimental factor of execution-only sales via a non-advising channel is trusts. An example here would be that a big life insurance policy can be put into place without any discussion or recommendation of a trust to accompany it.

This plan would, in the event of a life assured’s death, be paid into the estate and either increase or create an IHT liability rather than a trust placing the proceeds in the right hands at the right time. The other problem, of course, being that of critical-illness policies offering basic cover and not fulfilling the client needs or expectations.

There would be no complaints channel for the victim since the inadequacy of the plan would not come to light until they attempted to claim.

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