refused Discount on Life Assurance

M

Madilla

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I recently tried to avail of a special offer by a discount broker to take out life insurance with 90% discount on premium for first year. The broker refused to process the application because I have availed of this offer twice in the past and then cancelled the policy after the first year. Just looking for comments on the brokers actions.
 
Each time you do this you cost the broker money and waste his time -- I'm surprised he let you do it twice.
 
Brokers work on a commission basis. Usually if tied to a life assurance company there is a six to twelve month clawback on commission if the policyholder cancels the application. It is generally seen as the policyholder having been mis-sold the product. I'm not surprised the broker is discouraging you from doing this for a third time.
 
From what I understand most of the brokers commission is in the first year. Not sure of why they would have allowed this even a second time. Sounds fair to me what they are saying, nothing for nothing and all that, but maybe ask to see the terms and conditions of this offer, is there any mention of it in there. Might be no harm asking someone else in the industry how this works, I'll send you a pm of my brokers details if you like, nice guy and quite helpful.
 
Commissions are 90% of the 1st years premium and a small renewal of 3 or 4% p.a.

They also get overrides based on volume and persistancy.

I'm not surprised at what happened in the circumstances. A broker has no obligation to accept or process business if he doesn't want to.
 
Thanks for all the replies. I did understand that the discount he was offering was probably nearly equal to his commission. I know that there was very little in it for him but I had thought that he had an obligation to abide by the tems of the offer regardless of the fact that I was using (abusing) it.I will see if I can get a copy of the tems and conditions of the offer. I had just seen it in a column in the Irish Independent which is where I spotted it in the past. From my recollection there was no reference to terms and conditions in this article.
Thanks again.
 
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