Legal and General, Aviva

Flow2010

I am looking at possibly buying life/critical ilness policy through a brooker and thinking of going with Legal and General or Aviva. I would be grateful if anyone can be able to give me their experience if they have been involved with these companies. Thank you in advance

stephenni1971

Flow2010 wrote: »

I am looking at possibly buying life/critical ilness policy through a brooker and thinking of going with Legal and General or Aviva. I would be grateful if anyone can be able to give me their experience if they have been involved with these companies. Thank you in advance

L & G covers approx 10 more major conditions than Aviva...

Should your broker not be telling you this information? After all he will be getting paid for it!

Flow2010

Thank you for this information. Actually I am planing to buy via moneyworld so I am not sure if they are like the standard broker. I actually got a quote from my mortgage advisor for about 64 pounds per month but checking on moneyworld it quotes about 40 pounds. At the moment I am getting more information and getting to understand the providers before purchasing. Thanks once again.

ACG

I would go with L&G purely for the reason that when it comes to trying to speak to them or make a claim it is far quicker and easier (thats not to say it will be the same when/if you make a claim).

Make sure you complete the form honestly, i had a client recently who had they not gone to a mortgage/financial advisor would not have been paid out should a claim have been made.

But both are massive reputable companies with good claim records.

kingstreet

L&G scores 5 stars on the Defaqto rating for its CI propositions, while Aviva manages only three stars.

http://www.defaqto.com/star-ratings/critical-illness

Given there's likely to be little difference in the premiums, choose L&G for the better quality cover.

Other 5 star providers include Bright Grey, Scottish Provident, LV, Friends Life (Axa) and a few others...

weighty1_2

I agree with Stephenni on with one. Not only does L&G cover significantly more conditions they also have numerous conditions which have an claims definition which makes it easier to claim on than Aviva.

As ACG states though, both companies are extremely reputable and have good claims records.

On a side note, why not try and seek out an IFA who charges a fixed fee for protection business. This way you can ensure you get suitable advice but shouldn't suffer the big price difference like you've found between your mortgage broker and Cavendish etc.

kingstreet

Flow - as there's going to be life cover included, will you be writing the policy in trust?

- life cover paid outside your estate so no need to mention in will
- no need for probate, so quick and easy settlement
- no inheritance tax implications either now or later

I'd say the trust issue is the one which best determines if you are being well-advised by a professional, knowledgeable adviser.

weighty1_2

Personally, I think there's probably a whole host of issues which have been overlooked.

As Kingstreet mentions, what about trusts?
What about including waiver of premium?
What about considering life & PHI as opposed to life & cic?
Is the plan going to be arranged a 2 single plans as opposed to a joint?
Are there any underwriting issues which need consideration?

The problem is, based on this thread and the other threads started by the OP, the client seems intent on going down the absolute cheapest route. Whilst it's nice to save some money each month it's a false economy to do so if the plans aren't going to provide the right type of protection. Websites like Cavendish do nothing to improve the general populations opinion of the insurance industry as people may get the "cheapest" deal but may often not be fully aware of the caveats within plans, the FULL duty of disclosure and are unlikely to know of the options which they could have chosen which may have been more appropriate.

Flow2010

Thank you all for your time for useful information and exposing me to areas I have not thought about. For example I did not know the term trust or benefits of writing to trust. Also when my mortgage advisor provided advice and quotations did not mention this and their L&G policy was approx 65pounds as opposed to 40 pounds on moneyworld (I am not sure if the initial 40 pounds will go higher when the quote is goes through to the underwriter). These policies, reading the key facts were the same. I guess which ever way one goes, I suppose it is good to have some knowledge in this area.
I am single at the moment so does the trust have to be wife/children or can it be written for example brother/sister/parent and then changed to wife/children at a later time?
Because I am single I did not see the need for a life insurance but now I am in the process of buying a house think if something happens to me my brother/sister could pay any remaining mortgage off and have the house.

ACG

You can put the policy in trust for whoever you like. Its your policy your paying for it.

However, if you are thinking of changing it at a later date it should be in a "flexible trust" and the trustees will also have to agree to those changes. So make sure you get people you can trust (no pun intended).

Flow2010

Thank you for this information