Advised vs Non-advised Sales
An ‘advised’ sale means that your policy will have been recommended to you by an adviser who has explained why they feel the type of product or policy is best for you after assessing your individual demands and needs.
A ‘non-advised‘ sale means you are given information about the policy. Therefore, the sales agent can’t offer advice on what they feel is best for you.
What makes them different?
As noted from each of their definitions, both advised and non-advised services include explaining the range of products available and policy or product descriptions to help you make a more informed decision. The key difference is the insurance policy recommendation power, but here are other specific differences to keep in mind:
Insurers Policy Options
One of the most notable differences between advised and non-advised firms is that the former has long panels of providers they can present to their clients.
On the other hand, a non-advised sales firm can have the same list for them to be able to execute the sale once the client decides on their own. It will also allow them to learn more about policies and insurers to provide factual and beneficial information.
If you go directly to an insurer to purchase health insurance, be mindful that the sales team could be non-advised and can only give you information about policies they sell.
The Process
The non-advised process is shorter than advised sales because the former only provides generic advice to customers regarding getting insurance. It can include answering questions and explaining terms related to insurance, the benefits of getting insurance or coverage, and other similar information.
They won’t be able to answer questions like, “What is the best policy?” or “What do you think should I choose?” Basically, it won’t answer questions that can lead to an answer that sounds like specific advice, an indirect recommendation, or trying to close a sale. However, non-advised companies can seek permission from the if they want to provide individual advice to their client due to a valid reason.
On the contrary, the advised sales process will usually involve the following steps:
- Client need and demand assessment
- Suitable product type recommendation and explanation
- Policy features and benefits advice
- Level of cover, cover type, and discount products selection and explanation
- Policy statements or terms and conditions explanation
Once you’ve chosen the insurer and policy with the help of the advised sales team, they will also assist you when you need to make claims.
Legal Obligations
Generally, an advised sales company has more legal obligations to their clients since their agents were the ones who recommended the policy and insurer. From the process discussed above, they’re expected to explain the policy or insurance contract, coverage, benefits, and potential risks in detail. Thus, if the sales agent claimed that a particular cover is included but actually isn’t, a client can take legal action.
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How can I ensure I get impartial advice?
The private health insurance broker should detail any partnerships they have with a private health insurance provider as part of their disclosure. Clarity Health Insurance do not currently have any such arrangements, meaning there is no financial incentive to recommend one private health insurance provider over another. Instead, we can focus on examining each of our client’s requirements to find a policy tailored to their unique and specific needs.
When exploring private health insurance through a provider, you should look at the reviews they have on sites such as Trustpilot or Google Reviews. This will give you an idea of previous client’s experiences with that private health insurance broker. Look at a range of different reviews to get a complete picture of a broker’s reputation.
You can also look to their website to see if they have had any recognition from finance and consumer awards bodies, such as Deefaqto and Which?
You can also check to see if a service provider is regulated by the Financial Conduct Authority (FCA). This is the body that regulates all providers of financial services in the UK. To be authorised by the FCA, a company has to follow strict compliance regulations and present information to its clients in a clear, easy-to-understand format. You can search for a company on the FCA’s register to ensure they are fully compliant and authorised.
How will I know if it’s an Advised or Non-Advised Sale?
This information should be disclosed at the start of the process, and you may even see it stated on the website or marketing materials of the service provider. But you should be able to work this out yourself during the process through how the service provider deals with you.
An advised sale will talk you through the policies available based on your requirements, carry out a thorough introduction to find out your exact needs, and then recommend specific policies based on the information you have provided.
A non-advised sale will only provide you with information about a policy, and won’t be able to make recommendations on which one may be the best fit for you. They will not answer subjective questions such as “Which policy do you think is right for me?” or “Which option is the best for my circumstances?”.
Which is the better option for me?
In general, it comes down to the time you have available to research policies and the confidence you have that you are making an informed decision without expert advice.
Both options will provide you with information on the different private health insurance policies available. In general, an advised sale service provider will have access to a larger panel of private health insurance providers, meaning they can examine more policies to help find a package that fits your needs. This can mean more comprehensive cover or they are able to find a cheaper quote.
A non-advised sale will go through the details of a policy for you, but they will be unable to make a recommendation on whether it’s the right option for you based on your unique, personal circumstances and health history. This means there could be more work for you to do to ensure the policy is the right fit for your needs.