life insurance-paying too much

agoyaagoya

Hello there, i am new to the boards and wondered if you could shed some advice.

I started a mortgage 2 years ago and was sucked into taking Decreasing Mortgage life insurance cover with critical illness for me and my partner.

We are currently paying £50.60 per month and i wanted to exit this monts ago but becuase we went through a Broker we would have to pay exit fees.

I can come out of it in Feb so thats wh i am looking.

Basically our mortgage is for £110,000

I am 27 and very healthy etc
My partner is 32 and she is very healthy etc

Our mortgage term is 32 years.

It is with the legal and general

I do alot of driving with my job as i am a sales rep.

Do you think i can find cheaper/better value??

Do i need CIC? is there a better way to pay the mortgage off if one of us passes away?

I just dont like the thought of paying £50.60 per month for something i dont fully understand and feel i was coned into taking but as you know with buying our first home we were stressed etc.

Any help appreciated

dunstonh

I started a mortgage 2 years ago and was sucked into taking Decreasing Mortgage life insurance cover with critical illness for me and my partner.

If it was a joint mortgage and you are dependent on each other for paying the mortgage then you were not sucked into it. You have a financial need and that need was met.

We are currently paying £50.60 per month and i wanted to exit this monts ago but becuase we went through a Broker we would have to pay exit fees.

That is actually a myth that is usually spread by the minority of brokers that want to put you off and threaten you that you will have to pay if you cancel. If you did not transact on fee basis and did not sign a fee agreement specifying exactly what was payable then you have no liability to pay them anything.

It is with the legal and general

Why does that not suprise me. L&G sales reps are notorious for threatening their clients with paying their clawbacks when there is no legal reason for doing so. We often see threads on here about this and its nearly always L&G.

Do you think i can find cheaper/better value??

Yes. Products from sales reps are typically more expensive than the whole of market/IFA route. Buying on advice or execution only from a whole of market protection source or IFA would be cheaper providing your health hasnt changed for the worse since you took it out.

Do i need CIC?

You do if you have a claimable event. You dont if you dont.

is there a better way to pay the mortgage off if one of us passes away?

You know your finances better than us. How much money do you have in the bank to clear the mortgage if the other dies?

I just dont like the thought of paying £50.60 per month for something i dont fully understand

Get advice then.

feel i was coned into taking but as you know with buying our first home we were stressed etc

You would feel worse if your partner died and you didnt have cover. You have not been conned. You bought it from the wrong distribution channel but the advice given was fine. The threat of the tied sales rep on commission is the only con here.

Wutang_2

agoyaagoya wrote: »

Hello there, i am new to the boards and wondered if you could shed some advice.

I started a mortgage 2 years ago and was sucked into taking Decreasing Mortgage life insurance cover with critical illness for me and my partner.

We are currently paying £50.60 per month and i wanted to exit this monts ago but becuase we went through a Broker we would have to pay exit fees.

I can come out of it in Feb so thats wh i am looking.

Basically our mortgage is for £110,000

I am 27 and very healthy etc
My partner is 32 and she is very healthy etc

Our mortgage term is 32 years.

It is with the legal and general

I do alot of driving with my job as i am a sales rep.

Do you think i can find cheaper/better value??

Do i need CIC? is there a better way to pay the mortgage off if one of us passes away?

I just dont like the thought of paying £50.60 per month for something i dont fully understand and feel i was coned into taking but as you know with buying our first home we were stressed etc.

Any help appreciated

Sounds to me like a decent price - it is a decent policy but speak to an IFA to review if you need clarification

SJ610

What your paying does look a little high based on your ages, comparison web sites should be able to shed some light.

SJ
Experienced Insurance broker