Aviva v LV Life Policies

hollie.weimeraner

I've been looking at quotes for Life Insurance and have been quoted £25 per month by my IFA with LV (actually cheaper than an on line quote) but Aviva run out at £17 per month for what seems to be the same terms.

I'm curious to know why there is such a big difference for what seems to be the same policy.

(Male aged 53yrs, 13 year policy, non smoker and term assurance of £100,000)

adamc260

Like anything I guess, maybe they have a set criteria of what they're looking for and if you fit it can offer you a lower price? =/

Look at car insurance for example.... one company may charge £1000 and another £400.... spose its the same in life policies!

dwsjarcmcd

hollie.weimeraner wrote: »

I've been looking at quotes for Life Insurance and have been quoted £25 per month by my IFA with LV (actually cheaper than an on line quote) but Aviva run out at £17 per month for what seems to be the same terms.

I'm curious to know why there is such a big difference for what seems to be the same policy.

(Male aged 53yrs, 13 year policy, non smoker and term assurance of £100,000)

There could be many reasons. As has been mentioned above it could be that Aviva are cheaper than LV= or it could be that whoever your buying the Aviva policy from could be rebating some of the commission to reduce the premium (particularly if your buying it online) or it could be a combination of the two

yelf

From personal experience i would avoid LV=s life dept like the plague. gross incompetence is an understatement. if it truly is like for like (ie: the IFA can show the terns from aviva as well) I would use aviva

Cautious_Investor_3

hollie.weimeraner wrote: »

I've been looking at quotes for Life Insurance and have been quoted £25 per month by my IFA with LV (actually cheaper than an on line quote) but Aviva run out at £17 per month for what seems to be the same terms.

I'm curious to know why there is such a big difference for what seems to be the same policy.

(Male aged 53yrs, 13 year policy, non smoker and term assurance of £100,000)

Hi

First of all check that the terms are indeed like for like, check everything from date of birth and smoking status to sum assured type of policy (i.e. make sure they are both providing level cover and one is not providing decreasing cover), the term etc.

Next check the commission on both, they should be fairly similar. If the Aviva policy has significantly lower commission then that may be the reason for the difference in premium.

Assuming all of the above are identical then it is simply a case of commercial pressures pushing down the Aviva premium.

For simple life cover there would be little reason not to use the cheapest insurer. Beware though if you ever look at critical illness cover, this is not the case and price is only one of the issues.

I hope this helps.

The Cautious Investor

benjaminM

Aviva have a few different policies available so it depends which one you have been quoted. If it's Aviva simplified life it is basic life cover. LV policies are what is known as menu products. These policies give you the option to add on extra covers such as income protection or critical illness.
Without seeing the quotes it's difficult to give any more advice. I would suggest you ask your ifa what the differences are between the policies so you can make an informed choice.

sophievenusdoom

I applied for life cover with Aviva as they quoted the most competitive premium, but after the underwriters had looked at it, they increased it a significant amount.

Then I applied with LV (the company I work for - *ducks flying book from Yelf*) and they AOR'd me...I am not advising you to go with one or the other, just saying things aren't always as they appear from quotes (LV= included!)

Cautious_Investor_3

sophievenusdoom wrote: »

I applied for life cover with Aviva as they quoted the most competitive premium, but after the underwriters had looked at it, they increased it a significant amount.

Then I applied with LV (the company I work for - *ducks flying book from Yelf*) and they AOR'd me...I am not advising you to go with one or the other, just saying things aren't always as they appear from quotes (LV= included!)

Just goes to show the importance of not taking the first answer from an insurance company!

The Cautious Investor

hollie.weimeraner

sophievenusdoom wrote: »

I applied for life cover with Aviva as they quoted the most competitive premium, but after the underwriters had looked at it, they increased it a significant amount.

Then I applied with LV (the company I work for - *ducks flying book from Yelf*) and they AOR'd me...I am not advising you to go with one or the other, just saying things aren't always as they appear from quotes (LV= included!)

Whats AOR'd ?

Cautious_Investor_3

hollie.weimeraner wrote: »

Whats AOR'd ?

Accepted at ordinary rates?

yelf

good point that - i once apllied for life cover for a client with aviva and aegon (knowing the guy would definitely be rated), and aviva gave double the rating of aegon. If you have any health issues i would always apply to more than one company