Life Insurance

smiffy100

Hi
I was wondering if someone could help me, my partner and I took out term assurance policy to cover our mortgage. This was in February and since looking around I have discovered that we can save more than 50% if we changed the company we are insured with. However I have contacted our financial adviser who has told me that we have to keep the existing policy for 2 years before we can change otherwise she said we will be taken to court for her commision to be paid back to her company. To be honest I do not remember signing anything to this effect however I am not 100% although I am unable to find anything in my paperwork, and secondly I am a little annoyed that we were not offered to option to shop around when taking out this policy. Can anybody tell me if I have any options at all please.
Many thanks
Smiffy

whiteflag_3

Hi smiffy

However I have contacted our financial adviser who has told me that we have to keep the existing policy for 2 years before we can change otherwise she said we will be taken to court for her commision to be paid back to her company.

:eek: This is rubbish , ask your "advisor" for a copy of what you signed agreeing to this.

However , are you comparing like with like , a 50% reduction is a huge drop, does your existing policy have any other benefits?

secondly I am a little annoyed that we were not offered to option to shop around when taking out this policy

Dont understand this, everyone has the oppotunity to shop around!

Which organisation did you did with ? Which insurance company are you with?

IF your health hasnt changed theres no reason for you not to get cheaper cover.

smiffy100

for the info, the policy is with legal & general, and we are still the same health wise etc, and the policy is for the same amount, although we have 3 policies, one that covers both myself and my partner in death that covers the whole mortgage, and the other 2 small policies are for £100k in death to, so basically if either of us die the mortgage is paid off and we would have 100k too, horrible to think about but we have a 1 year old son, so important his future is secure. However, i am thinking of just getting 1 policy that pays out on death for the 265k in joint names, cant see what difference it makes especially as the premium works out the same.
thanks once again, i will get to the bottom of it.
:j

dunstonh

Legal & General through the IFA/Independent protection advisor distribution are one of the cheaper providers. It is more expensive through the tied distribution channels.

Saving 50% on an L&G life product, assuming independent, is unlikely unless you are not comparing like for like.

whiteflag_3

dunstonh wrote:

Legal & General through the IFA/Independent protection advisor distribution are one of the cheaper providers. It is more expensive through the tied distribution channels.

Saving 50% on an L&G life product, assuming independent, is unlikely unless you are not comparing like for like.

I agree, cant see how you can get a 50% reduction on a like for like basis.