I appreciate that one cannot defend the indefensible, but it is always the case that a few rotten apples will spoil the barrel. Single premiums are not for everyone – they are for the people who want a lower outgoing with a guaranteed premium which cannot be cancelled by the insurer in times of high claims or the cost increased or the terms changed. They want a cancellable policy if they become ineligible; they want a transferable policy; they want a flexible policy with various options of claim length; the option of Accident & Sickness or Unemployment only; they want to know the costs of adding it to the loan and they want it sold compliantly (have a look at the Financial Services Authority (FSA) Payment Protection Insurance factsheet) at a competitive rate where the customer knows there is an option of a monthly premium and they make an informed, fully advised choice with a fully trained adviser. Let them make that decision, not you.
Many of the complaints about payment protection insurance (PPI) and mortgage payment protection insurance (MPPI) single premiums come from a mis-sale – unforgivable; a compulsory sale – unforgivable, or a non-advised sale and many of these complaints would not occur in the first place if responsible lending had taken place. We have complaints about high commissions – as far as we are concerned you can sell it for 3 per cent, (beat that on monthly), with 10 per cent commission. Not all brokers are the greedy, avaricious creatures portrayed in these columns; our average premium rate is below most first mortgage lenders with better terms and conditions than these lenders.
Consultants are happy to add holidays, fees, solicitor’s fees, etc, to a mortgage and in some cases mortgage indemnity (who benefits there?), which is the biggest single premium of all, but something which has value seems to carry a stigma.
Come on you knockers, worry about your clients, protect them in the way you see fit, but when some of the vulnerable clients who cancelled their direct debits for whatever reason, lose their jobs or cannot attend work due to illness/accident find themselves in difficulty, look in the mirror and then tell yourself you did a good job by not offering a choice. I repeat, the products are not for all but for some. We can provide the competitive products, compliant training, the options that most of the ‘anti’ are looking for and we have pointed this out to the FSA.
Stop moaning chaps – get on with what you are good at, and look after your clients.
Derek Green
Chairman
D&D Homecare Ltd
