Life insurance policy...was it fair?

ecoelle

We bought a house 3 years ago and have since been paying into a policy which should the worst happen to sither of us will pay off the mortgage so the other person will not be left homeless (neither of us could afford to pay it alone).

Our mortgage was for 120,000 when we took out the ppolicy and it costs £61 for both of us per month. After speaking to other people this seems very high. Does anyone know if there is a good website for looking at policies. I know that life insurance is complicated as past illness and various other factors are taken into account but i think we may have been paying too much since the start of the policy.

Anyone know anything about these policies? Are they any good? Are they worth having? Or have i been duped into paying for something i don't need ? It was sold to us by our mortgage advisor when we took out the mortgage are there any agencies who could advise me about this face to face? Any help gratfully received

Thanks
Elle

jenny-wren

Mine costs £15 a month (OH pays about the same) but only covers £50,000 as we took out the policies in about 1991 when property prices were much lower.

cte1111

My OH and I have joint life insurance that costs £11 a month for £100,000 of cover. We are both 33 and non-smokers, think it will be more if you are smokers. For a quote try: http://www.confused.com/life-insurance

It might also be cheaper to get 2 separate policies, rather than a joint one. Also check if life insurance is included in your employment benefits, my OH has 3 times his income in life insurance as part of his employment package, I also used to get a similar benefit from a previous employer.

Once you get a competitive quote, then have a look on quidco and see if the insurer is offering any cashback on there. I think we got about £40 cashback for taking out a policy via quidco.

Beckymarshall07

Hello me and hubby have decreasing life insurance policy which costs us £8 per month each for mortgage of 106k. It depends on what your cover is giving you - if its life insurance and sickness protection plan then perhaps its not as bad but does seem to be quite high to me. I think when I looked into it for having life insurance with sickness protection worked out at £25 per month so check what your cover is giving you. If it is just for life insurance ditch it and use moneysupermarket.com for better price.

mic200202

The price of the policy is based on a few things - your age when you took it out,the number of years its to run ,your health at the time,whether or not you smoke,and the type of benefits that it contains.It may for example contain critical illness,which is designed to pay out in the event of say cancer, heart attack or stroke etc.The more benefits the higher the cost. Comparing this to what other people have is difficult since their circumstances may be completely different. You can, with most policies nowadays remove some of the benefits and thus reduce the cost without having to go through a new application.However, you are taking the risk of losing some of the protection. I would suggest that you should take advice on this - going to a comparison site as mentioned above is fine for the most basic needs but remember these are provided without advice which means you have no recourse to the full protection of financial regulation and ombudsman service, and no assessment of the suitability of the policy to meet your needs.You may have employers benefits such as death in service (usually linked to a pension scheme) which can provide a useful addition to your life cover needs. I wouldn't rely on these as they are linked to your continuing employment with the same firm.