L&G increasing premium for accident sickness and unemployment cover

carolineb23

Hi,
Just after a bit of advice really, we have accident sickness and unemployment cover for my husband to cover our mortgage. Legal and General have just sent us a letter saying that from the 1st July they are increasing the premium from £35 to £49 a month. Obviously we aren't happy with this. However, I'm a little concerned about cancelling the policy and taking out a new policy as L&G state in their letter that some companies won't pay out on new policies for a certain amount of time (makes sense I guess). We are going to call L&G to try and get the premium down as we feel a 40% hike is not acceptable. Has anyone else had this?
Does anyone know of any other companies who offer this sort of insurance so we can look around if need be?
Thanks

cattie

All providers of these kind of policies have put their prices up due to the massive increase in claims due to redundancy/unemployment.

As you say, changing providers is risky as you have to take the chance of nothing untoward happening to you during the initial exlclusion period.

Be wary when shopping around as if one or two other providers sound cheap it could well be because they have yet to increase their premiums in line with competitors.

dunstonh

We are going to call L&G to try and get the premium down as we feel a 40% hike is not acceptable. Has anyone else had this?

Virtually all providers have increased their premiums due to increased levels of risk. There has been loads of posts on here about it.

Does anyone know of any other companies who offer this sort of insurance so we can look around if need be?

Yes there are lots. Some have increased by over 100%. Typically the cheapest ones have increased the most.

bisybee

Hi Caroline23,
Thanks for your post, I've had the same letter and couldn't find any other posts about it?

What worries me most is not the cost (although am not exactly thrilled by it) but the changes to the policy itself.

In particular they have changed coverage for those on contracts and your entitlement depends on how long and how often your contract has been renewed with that employer. It is worth having a read through the changes to see how they affect you.

I am waiting for a call back from them for clarification. Am going to look elsewhere anyway to see if I can get better coverage or cheaper. I'd appreciate suggestions.

Bisybee

bisybee

In the end I decided to stay with L&G.

However, I noticed this month that the direct debit wasn't taken out of my account so I gave them a call. I was told that they have decided not to increase their rates after all:T

Direct Debits that were due to come out at the start of this month have been delayed to allow for recalculation and apparently should come out on the 17th of this month.

Just thought I would pass on what they told me, hope it is true.