25th May 2012

IFA letter of the week

I am seeking evidence against the notion that the Financial Services Industry has become spineless and disinterested in huge sections of the UK population. To this effect I am going to be starting a No 10 petition for the Government to adopt a full Financial Services Manifesto instead of introducing developments in a slow and piecemeal fashion. 

I am looking for ideas from the IFA community on issues they would like to see being brought about. 

For example, I want to see a form of LAPR reintroduced for all single life term assurance plans written to age 65 and beyond and for single life whole of life policies that never generate surrender values. This will be to counter the fact that an EU ruling appears to be forcing the cost of life insurance upwards from next year.

With the help of caring IFAs, this will also stop technically incompetent mortgage advisers selling Reducing Term Assurance to cover a mortgage in the knowledge that whenever a client moves taking up a bigger mortgage, the old policy can get churned because it has become unfit for purpose - the term is too short and for too low a sum assured. One in three joint life policies end up being cancelled because of relationship breakdown and then it becomes more expensive to buy new insurance because the client is older. 

My solution starts to create policies for life. 

I want your ideas - let me know what you think. 

Frank Jurga
Independent Financial Consultant

Adviser Letter of the Week