life insurance so complicated!

fredy34

At present im paying £33 to Liverpool Victoria for
Combined life and critical illness Protection, and waiver of premium (whatever that is!)

Ive gone to Cavendishonline and filled in what i think are the relevant details (except for the waiver of premium) and its coming out at about £14. Including a quote of £17 from Liverpool Victoria! how does that work?

Its for £85,000 and ive selected mortgage cover with death or earlier critical illness.

Sorry for basic question but i really dont have a clue have i done the right thing?

thanks

fredy

payless

Waiver = This is used to continue the policy in the event of becoming disabled or ill, and unable to work for longer than (usually) six months. The insurance company will pay the premiums for you until you are able to return to work.

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Unlikely that LV rates have changed that much.. even when taking discounted ( lower commission) rates into account
Does current policy have level ( or increasing) and new quote decreasing benefit ? or perhaps current policy includes extras like "income protection" ?

Most providers offer reviewable ( chance they increase rates later) or Guaranteed rates - are you comparing like for like

Care that CI cover is same , some policies are cut down versions, and some providers offer different levels

CI definations might have changed (- even on like for like plan from same provider - ) since taking last policy, make sure you are aware if you are effecting downgrading

( EDIT .. posts crossed with DD , hence looks like we said same things , but we were typing at same time)

dunstonh

You cannot be quoting like for like. My guess is that you are comparing reviewable premiums with guaranteed premiums.

Also, critical illness have different levels of cover, comprehensive or core conditions only (budget). You may be mixing these up as well.

Another point to be concerned with is that about 3-4 years ago, the CI benefits were reduced on new business. However, existing plans kept the better cover. So, if you change your protection now and your old policy is from before the reduction in conditions covered, you will be reducing your benefits.

Also, different providers have different levels of cover for various conditions. So you cant compare like for like on price, even if you pick the quote options to be the same.

And finally, quote portals often quote on class 1 occupation. If you are not class 1 and a class 1 quote was issued initially, the premium will be increased before the policy is commenced.

Its not difficult if you know what you are doing and quote portals exist for those that do know and dont want advice. However, for those that do not know what to do, that is why there is advice channels.