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Moneynet and Lifesearch add warnings

Moneynet and Lifesearch have responded to the Money Marketing protection campaign by adding pre-sales health warnings to their websites.

The warnings, the central aim of the No Advice, No Protection campaign, alert consumers to the hazards of buying protection products on an execution-only basis.

They also point out that buying protection policies on a direct basis limits rights to consumer protection if it turns out that the policy bought is inappropriate to the individual’s needs.

Moneynet’s wording warns that if you buy insurance on an execution-only basis, “you take responsibility for what you are buying and there is no come back if the policy you end up with is unsuitable”. Lifesearch also adds a similar warning on consumer protection.

The Moneynet site warns that life insurance may appear to be a straightforward prod- uct and stresses a number of considerations cannot be fulfilled without advice, including issues of suitability, sett-ing up a policy in trust and cover levels.

Lifesearch senior technical adviser Kevin Carr says: “This is all it takes to treat customers fairly. Tell them what their options are and allow them to make the choice as they see fit. It is as simple as that.”

Moneynet chief executive Richard Brown says: “An interesting element to our site is we ask whether the customer does or does not want advice or is not sure. The majority click the latter. Many consumers do not understand the differences between execution-only and advice and surely can only be reassured of their options by talking to an adviser.”

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