Legal and general life insurance

Redmikee

We are currently paying Legal and General £37 per month for Life Assurance, as we are rearranging our mortgage the brokers quoted us £15 per month....from Legal and General.
What is the difference between the two policies? It seems they must be significant for such a large amount of money.


Mike

K9cuddles

Contact L&G and ask to speak to there Techincal Advice Ctr (TAC) they are a group of IFA's that advise customers one what to do. If they think surrendering the policy taking other out is best for you they will recommend it as they independent!!

Redmikee

Thanks I will ring them tomorrow, either there is a big difference in the policies or I have been paying over the odds for the last three years.

Mike

jasonking

There must be a significant difference for there to be such a big difference. I suggest you get your L&G policy doc and make a direct comparison to the key features quote you have been given from the mortgage broker, check things like type of cover (level, decreasing, incl critical illness) level of cover in £'s, length of cover (term) who is covered...you will find any differences in these areas.

The only other thing to consider is do you remember being accepted at ordinary rates originally or do you have medical issues, high risk occupations/hobbies that might have led L&G to rate (increase) your premium originally? If so then you are not making a direct comparison as the £15pm premium will be on normal rates.

dunstonh

L&G operate through a number of tied salesforces as well as the independent market. The independent product is a fair bit cheaper than the tied product.

So, if you bought yours off an L&G rep before or one of the banks tied to L&G that would account for some of the difference.

The other thing is that upto about 2 years ago, life cover was dropping in price significantly. So, a policy older than that could easily be cheaper now.

You should make sure its like for like. If the old plan includes critical illness but the new one doesnt then that would account for the difference.

If you have an existing policy, it is an FSA requirement for the recommendation to include full documentation about the cancellation highlighting the pros and cons. The adviser should have full details of the existing plan and the report should include documentation supporting the reasons why the new one is better.