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MSE News: Stonebridge to axe life insurance cover for thousands
Former_MSE_Paloma
Posts: 531 Forumite
Stonebridge set to axe its monthly renewable life protection product for thousands - consider getting cover elsewhere...
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Stonebridge to axe life insurance cover for thousands: consider alternatives now
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Stonebridge to axe life insurance cover for thousands: consider alternatives now
Click reply below to discuss. If you haven’t already, join the forum to reply. If you aren’t sure how it all works, read our New to Forum? Intro Guide.
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Comments
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So in basic English, 'We have been selling a product which is costing us more in payouts than what comes in via subscriptions. Therefore we are shutting down the cover to limit our loses'.The more I live, the more I learn.
The more I learn, the more I grow.
The more I grow, the more I see.
The more I see, the more I know.
The more I know, the more I see,
How little I know.!!
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Agreed.
4000 customers represent only about 1% of their total customer base.
I guess they considered upping the premiums, but that would almost certainly result in even less than the current 1%. There comes a time when any business needs to concentrate on selling products it makes profit on, and ditching lines that don't sell/produce a profit.
Supermarkets do this all the time.0 -
I agree with you all.Agreed.
4000 customers represent only about 1% of their total customer base.
I guess they considered upping the premiums, but that would almost certainly result in even less than the current 1%. There comes a time when any business needs to concentrate on selling products it makes profit on, and ditching lines that don't sell/produce a profit.
Supermarkets do this all the time.
What annoys me is that they can't just say that without going into companynize whilst doing a smoke and mirrors job to hid the decision they made to stop the cover.
When I hear any company blurting this kind of drivel, I tend to steer clear of giving them any business as I feel I can't trust them.The more I live, the more I learn.
The more I learn, the more I grow.
The more I grow, the more I see.
The more I see, the more I know.
The more I know, the more I see,
How little I know.!!0 -
When I hear any company blurting this kind of drivel, I tend to steer clear of giving them any business as I feel I can't trust them.
Yes you can't trust them. The point of taking these type of products out early in life when you are very unlikely to claim, is that the premiums are lower.
They will have known that they would need to pull the scheme when it was started. The only way they would have made money otherwise is if you decided to stop paying. It would take 138 years before you paid more in premiums than you would receive, so it's unlikely anybody would ever have stopped paying.
The only other option is that they would wriggle out of paying when you died.
tl;dr They suckered their customers on purpose.0
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