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IFAs missing out on term sales

IFAs are losing out on valuable business opportunities by not considering

term insurance for their clients, according to figures from Swiss Re Life &

Health.

The company&#39s research shows that direct salesforces sell nearly twice as

much individual term insurance as their IFA rivals, with DSFs accounting

for 61 per cent of all sales compared with just 32 per cent for independent

advisers.

As a result, thousands of customers are potentially paying over the top

for life cover, as many of the top term insurance providers, such as

Scottish Widows, Scottish Provident and Legal & General, have independent

advisers as their dominant dis- tribution channel.

The report says IFAs are in the unique position of shopping round to get

the cheapest cover with the added benefit of being able to rebroke the life

cover every couple of years as premium rates fall.

Towry Law Fraser Smith regional sales manager Patrick Murphy says: “I am

very surprised by the figures. Perhaps it is indicative of the way that

IFAs are moving to provide clients with wealth management from an older

client base.

“But term insurance represents one of the few areas left where an IFA can

genuinely add value and save their clients money while not having to worry

about commission levels.”

Maddison Monetary Management managing direc-tor Mark Howard says: “I can

understand why direct salesforces are ahead. It is because IFAs have a much

wider range of products to offer and they do not tend to go for the easy

options like their direct salesforce counterparts.”

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