Our Advice:

Our advice service aims to choose the right products for you. Once this service is complete, you’ll will leave with recommendations that suit your aspirations and will impact on the future of your finance overtime.

Ongoing advice is available to you – see below for ongoing advice charges – if not, you are always welcome to contact us again in the future if you require further advice.

What we will charge:

We receive compensation for arranging life insurance policies through commission payments, fees, or a combination of both. The most common method is commission paid by the insurance provider, rather than direct payment by the client. This structure is regulated by the Financial Conduct Authority (FCA) to ensure transparency and fair treatment of clients.

Commission Payments on Life Insurance Policies

When we arrange a life insurance policy for a client, the insurer typically pays us a commission. This commission is factored into the cost of the policy but does not result in additional charges to the client beyond their standard premiums.

  1. Initial (Indemnity) Commission
    • Most life insurance policies pay advisers an upfront commission, known as an indemnity commission.
    • This is usually a multiple of the first year’s annual premium, often ranging between 150% to 200% of the annual premium.
    • For example, if a client takes out a policy costing £50 per month (£600 annually), the adviser might receive a commission of £900 to £1,200.
    • The insurer effectively advances this amount to the adviser in anticipation that the client will maintain the policy.
  2. Clawback Period
    • Since the adviser receives commission upfront, there is usually a clawback period—typically between 2 to 4 years.
    • If the client cancels the policy within this period, the adviser must return a pro-rated portion of the commission to the insurer.
    • This discourages mis-selling and ensures that advisers recommend policies suited to the client’s long-term needs.
  3. Renewal (Trail) Commission
    • Some insurers also offer a renewal commission, where the adviser receives a small percentage (e.g., 5% to 10%) of the annual premium for as long as the policy remains active.
    • However, renewal commissions are less common today, as most insurers prefer paying a higher initial commission.