08/12/2025
Did you know that mortgages advisers cannot advise on life insurance? 😳
Well… that is what I was confidently told during a call to “review my life cover” today.
I got a call from a company wanting to carry out this review as apparently my adviser wanted them to review it and due to the changes with the FCA that I urgently needed it reviewed.
Now, we all get these calls and I do try to warn my clients about them. These people have not been asked to give you a call by me -I would never ask a third-party company to call my clients.
So I play along… might as well 🤷♀️
I tell them I have a really good policy in place and they tell me that I should get a cheaper one as “they are all the same”. Wow. This is simply not true.
Who your protection policy is with and how it is set up really, really matters. They are not all created equal. For your mortgage, we may look at the lowest cost… as no one usually likes a bank enough to give them any more money 🙈. But for your life cover the definitions, potential exclusions and quirks of the policy really matter. It is personalised to you, your needs and your liabilities.
I was told that mortgage advisers “Can’t advise on life insurance” and that they can only advise on mortgages as what this company could do was specialised. Bold claims from someone who knows nothing about the adviser (spoiler alert it’s me!).
Their grand plan is to replace my policy – but they do not know about the original advice, the compliance, the qualification levels, my needs or even my health exclusions at that point. What they do have is a script to make it sound like even the best of policies are bad or needs changing so they can redo a policy and get paid commission. This is immoral IMO.
Usually I play a long for a while but after being told that mortgage advisers cannot advise on life insurance/ critical illness plans I was done wasting time. I explicitly told them that what they were saying was unethical and misleading and they categorically should not be saying that to anyone on the phone.
Contrary to todays misleading called, I am fully qualified and authorised to advise on life insurance, critical illness and income protection. It is a core part of my role. We have a duty of care to our clients to make sure they know what they should have in place and we have a responsibility for that.
Pleased to say that they did tell me my call was being recorded… so I am glad this will come back for their “education” on what is ethical and not misleading. This is an award winning insurance broker by the way. Award-winning from whom is questionable.
If you ever want a proper protection review from someone who is actually qualified, I can always give you their details… after all, I couldn’t possibly be allowed to do such a thing 💁♀️
