| Re: Endowments The Forgotton Scandal (how big Insurance Companies Unloaded their responsibilties) [message #399760 ] |
Mo, 17 Juli 2006 17:57 |
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Post removed (X-No-Archive: yes)
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| Re: Endowments The Forgotton Scandal (how big Insurance Companies Unloaded their responsibilties) [message #399778 ] |
Mo, 17 Juli 2006 20:50 |
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"legal eagle" <iaae [at] birds.nest> wrote in message
news:44bba63d$0$22697$88260bb3 [at] free.teranews.com...
> "Bob_Cratchit" <fritz23 [at] teahut.freeserve.co.uk> wrote:
>
>>
>>GB wrote:
>>> Half the commission rate but on say 20 times the premium = 10 times as
>>> much
>>> commission for selling an endowment.
>>>
>>> If you used the same half-truths in selling life assurance, no wonder
>>> you
>>> are in trouble.
>>
>>That may be true in the inflated house price South East, but it
>>certainly was not true in the rest of the UK and certainly not 12 years
>>ago.
>
> Er, wrong. Life assurance was always fixed term, usually 10 years and
> fairly low premium. Endowments were usually a 25 year term with a much
> higher premium even in the freezing cold north. Endowments always
> attracted much higher commision, even in the north in the 80's.
>
Err no life assurance wasn't. A common one was a 25 years decreasing term
assurance to roughly follow the amount you would be due on a repayment
mortgage. Ten years would be stupid to cover a 25 year mortgage as your
circumstances might change and you could find it difficult to get more after
10 years.
Neb
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| Re: Endowments The Forgotton Scandal (how big Insurance Companies Unloaded their responsibilties) [message #399787 ] |
Di, 18 Juli 2006 02:23 |
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"Bob_Cratchit" <fritz23 [at] teahut.freeserve.co.uk> wrote in message
> The Huge bonuses/commission fees you mention are spread out over a 4
> year period during which customers are bombarded with literature from
> the Life Insurance companies re-inforcing the belief that they are not
> only going to pay off their mortgage but have money over to "realise
> their dreams"
Ah, so your defence is that you were a mere servant of evil, rather than the
evil master mind?
I agree that it is not just IFAs (who are really just sales people not
advisors), but it is that most of the entire industry is rotten at its core.
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