Life and critical illness cover..... HELP!

shanewhittington

Hi all,

My partner and I are buying our first home and our mortgage broker has set up life and critical illness cover. The amount we are being covered for is 105,000ish and the quote is coming in at a total of £32 a month (this is for the both of us and so its £16 each per month)

I think that we're low risk, non smokers with no history of illness in the family etc. I was just wondering if anyone could tell me if this quote is any good or if we should be looking for better.

ANY advice here will be greatly recieved as we have no idea about this.

Thanks for reading and I look forward to reading reples

dunstonh

I was just wondering if anyone could tell me if this quote is any good or if we should be looking for better.

Impossible to say on what you have given us. Age, term, type of life assurance, quality of CI cover, other bolt ones, occupation etc will all have an impact.

If your adviser was tied then chances are it is expensive. An IFA or whole of market general insurance adviser would be cheaper but DIY is the cheapest option. However, cheapest is not always best and if you dont do it right then it can cost you more in the long run.

Also, if you have used an adviser and do decide to change it, make sure you havent agreed for fee/commission offset as a clawback in commission could see you become liable to paying a fee to the adviser (That would have been offset by the commission).

shanewhittington

dunstonh wrote: »

Impossible to say on what you have given us. Age, term, type of life assurance, quality of CI cover, other bolt ones, occupation etc will all have an impact.

If your adviser was tied then chances are it is expensive. An IFA or whole of market general insurance adviser would be cheaper but DIY is the cheapest option. However, cheapest is not always best and if you dont do it right then it can cost you more in the long run.

Also, if you have used an adviser and do decide to change it, make sure you havent agreed for fee/commission offset as a clawback in commission could see you become liable to paying a fee to the adviser (That would have been offset by the commission).

we're both 25, term is 35 years, type is "life or critical illness cover" our occupations are teacher and lecturer, we have no other bolt ons and I don't know what 'CI cover means" :embarasse

Does this help. Where do I look for DIY quotes?

Thanks

stephenni1971

On the face of it £32pm for sum assured of £105,000 over 35 years doesn't sound excessive.

As Dunstonh says, there can be any one of a dozen different variables on your policy but you must remember

Buy from an adviser - you have protection if the policy sold is not suitable for your needs as told to the adviser.

Buy yourself - you have almost no comeback whatsoever if you find the policy was unsuitable ( and this may be many years from now ).

ANY advice here will be greatly recieved as we have no idea about this.

If you are making comments like this why would you go DIY and take the risk?

shanewhittington

stephenni1971 wrote: »

On the face of it £32pm for sum assured of £105,000 over 35 years doesn't sound excessive.

As Dunstonh says, there can be any one of a dozen different variables on your policy but you must remember

Buy from an adviser - you have protection if the policy sold is not suitable for your needs as told to the adviser.

Buy yourself - you have almost no comeback whatsoever if you find the policy was unsuitable ( and this may be many years from now ).



If you are making comments like this why would you go DIY and take the risk?

I wouldn't DIY..... I was just wanting to check if the quote I have is competitive. I'm more than happy for someone to guide me through the process!!

stephenni1971

Unless you know EXACTLY what you have been quoted it's dangerous to make price comparisons as you may miss out an important aspect of cover.

As I said £32 doesn't make me think you are paying over the odds, ask the adviser if he/she has researched the whole of market.

If the adviser is tied to one company then you can approach an independent adviser who can compare different companies.

ACG

I think you have a prety decent price on the face of it.
I think for a healthy 30 year old you would be looking at just hsort of £10 per £100k of cover. So £16 each (although the female life is usually the most expensive) for life and CI (Critical Illness) seems to be a decent price.

I would double check whether the advisor is placing the policy in trust or not (this is free) also what company is your life and CI with?

dunstonh

Unless you know EXACTLY what you have been quoted it's dangerous to make price comparisons as you may miss out an important aspect of cover.

Very true. How many times on these forums have we seen people post to say they saved £x amount per month only to find out that the reason they saved money is because they mixed up terminal illness and critical illness cover and assumed they were the same thing or went with lesser cover than they had before.

£32 doesnt sound a lot. Especially given the very long term and the inclusion of CI