Is it safer to pay insurance monthly in case insurance co goes bust?

FSexpert

If an insurer goes bust (which is unlikely to happen) then the financial services compensation scheme would meat any domestic claims.

pogofish

IME, you usually pay well over the score in order to pay monthly. Which is not a good thing.

Oscar_The_Grouch

FSexpert wrote: »

If an insurer goes bust (which is unlikely to happen) then the financial services compensation scheme would meat any domestic claims.

Hi FS Expert. I have thanked you for your post, because you have answered some of the points raised by later posters, but OP did make in clear that they are after pensions advice.

OP, there is a case ongoing with a life and pensions insurer called Equitable Life. Here is a link to the BBC "fall from grace" article:

http://news.bbc.co.uk/1/hi/business/3219069.stm

I'm not a life and pensions expert, so I hope that one of the other posters who knows the subject will look at this thread. If you don't get any joy, re-post your question with the word "pension" in the title and I am sure they will take notice.

iceburn

where did the OP either on topic or on first post say pension? Oh sorry in post 9. Yes agree with you Oscar the Grouch. Repost it and make it clear it is about pension in topic / first message.

manrow

Well done facingthefuture for asking a perfectly sensible question.

It seems to me that if there is a possibility of a company going broke, whether insurance company or whatever, then it makes sense to pay monthly so that effectively you are more or less only paying for that amount of the 'product' used.

Quote

manrow wrote: »

Well done facingthefuture for asking a perfectly sensible question.

It seems to me that if there is a possibility of a company going broke, whether insurance company or whatever, then it makes sense to pay monthly so that effectively you are more or less only paying for that amount of the 'product' used.

Utter utter nonsense.

How are you going to determine the likelihood of a company going bust? I imagine there's a POSSIBILITY of this happening to any company, however remote. By your rationale it would make more sense to pay more to insure with a company who is less likely to go under. Whilst I don't necessarily disagree with this idea, it's not at the top of my list of priorities.

:hello:

noelphobic

if you pay your insurance annually and use a credit card then you should be able to claim against the credit card company if the insurance company went bust.

manrow

A positive contribution noelphobic thank you. an idea I had overlooked!