Life insurance while in debt?

workingatit

Hi Guys,

Needing some advice of you kind folks again!

We are going through everything to see where we can cut back on some bills, we are in quite a fair bit of debt, and on a cccs DMP, looking through our stuff I noticed that our life insurance is quite a bit more than some quotes I have had off the https://www.moneysupermarket.com website,
so have two questions...

1. Can we change our insurance if we are in debt, will other companies accept us?

2. When we took out the mortgage the FA organsied the insurance with it, are we possibly tied with this company? (don`t know much about it) it was all done through him and we just went along with it.

The company that I would like to move to I already have 2 car insurances with them, both of which was taken out before we entered the DMP.

Any advice would be appreiated.

W :-)

tattooed_lady

Hiya!

When I was on a DMP with CCCS for approx 6 years we had no problem with insurance companies etc when wanting to take out policies. If you choose to pay by monthly installments then I think they do credit check you but it's just an identification check and like I said, we had an awful credit rating and never got refused insurance.

workingatit

Thanks for that!, may look more into changing it now, the one we have is approx £10 - £11 per month more and for less of an amount!!

Bickers

I Work for an insurance company.

The only check done is for identification only and not a credit check. Just checks to make sure who the premium payer is and address of person for money laundering process.

IF you need to get any advice, go and see and Independent financial adivsor (IFA) or apply directly to the companies. IFA's can advise you about all the different companies and their products, where as a tied adviser, can only give you info about that particular company he works for (be it Legal & General, Norwich Union etc)

tattooed_lady

Bickers wrote:

The only check done is for identification only and not a credit check. Just checks to make sure who the premium payer is and address of person for money laundering process.

Thanks for clarifying that, have seen searches on my credit report that say 'identification check'.

workingatit

Thanks Bickers, do you know if it was possible for the mortgage company to tie me to them? would we be able to change? as I said we just went with the flow at the time, so didn`t know to much about it.

Thanks in advance!

Bickers

Normally what would happen, would be you have seperate policies for Life assurance and seperate plan for your mortgage.

They are different types of plans but normally what tends to happen is that companies do it all together as it is viewed as being easier for the advisor (and they get commission for doing it!!!).

If you have a a seperate policy number for your life assurance part of the plan (which you should have on the policy documents) then you can cancel this at any time and re apply with a different provider. It is worth reviewing life assurance plans every 2 or 3 yrs as premiums can vary constantly. (bit like car insurance really but it covers you!!)

hope this helps

workingatit

Thanks for that, don`t think we would qualify then as we only have one policy not two saparate ones.....


Thanks anyway, will look into it.

W :-)