Kill The Meerkat! Relevant Life Insurance isn’t simples


photo by Lavoview, published on 18 July 2013 on

Kill The Meerkat

Ok, this is my soapbox moment, when I’m doing research for my clients for Relevant Life Insurance, a way of getting your limited company to pay for your personal life insurance and get full corporation tax relief on the premiums…

I don’t go on

Here’s why not:

It’s not simples, there are subtle nuances to all insurance covers including relevant life insurance, but only if you know the right questions to ask. It’s like being able to tell the difference between which guitar Hendrix is playing on any particular track.

  • Cheapest does not mean best
  • If you advise yourself, and you get it wrong, tough! By the time you find out you got it wrong it’s too late (i.e. you’re dead)
  • They do not ask why the term, your occupation, talk about the advantages of split pricing for 2 person policies or ask about trusts, guaranteed insurability options, automatic increases or even if you are suitable for relevant life insurance.
  • You are told “You should read the Important documents to check the cover and features provided as they may differ by each insurer” or….figure it out yourself. How are you supposed to do that if you don’t understand the terminology!?

I went on one site which shall remain unnamed that would compare the market prices for me and guess what? The company that came up as the cheapest is also noted on the key facts document as owning 94.48% of the share capital of the unmentioned comparison website. That’s not necessarily wrong and I did a couple of quick life only joint quotes, but it did make me question the impartiality of it. 

The criteria upon which they are ranked is price, whether you can apply online, if you get free accidental cover and how quickly they set up your policy.

The demands and needs statement states… “you are solely responsible for deciding whether the policy is suitable for your needs”  Which means, get it wrong, it’s not our fault.

Here’s why you should use an adviser:

  • An adviser get’s paid commission for their advice. Comparison websites get paid commission for non advice, you figure out what is a better idea.
  • The only way it won’t pay out if you use an adviser is: The adviser gets it wrong in advice or application submission or you are dishonest in answering the questions in the process. If the adviser gets it wrong there is recourse through their indemnity cover (good luck suing ) and the Financial Services Compensation Scheme. So, take those two out of the equation and you are pretty much guaranteed it will pay out.
  • You can discuss term, your occupation, talk about the advantages of split pricing for 2 person policies, find out about trusts, guaranteed insurability options, automatic increases, relevant life policies if you are a business owner. All of which mean you are much much more likely to get a product fit for purpose.
  • You will have the important documents explained to you and in the Key Facts Document your adviser should talk about aims, risks, commitments, when it might not pay out, how to claim and how to complain.

So please use an adviser, don’t kid yourself, you’re paying the fees anyway. I can figure out my car insurance or maybe even my contents insurance (but I’ll still ask my mate Chris The Insurance Knight who does it every day and knows heaps more than me) 

Finally, don’t really kill the Meerkat, they are cute but they know bugger all about relevant life  insurance advice.

Rock on….