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Life insurance - is it that expensive?
boo123boo
Posts: 16 Forumite
hi,
im in the process of buying a house and have been told by the mortgage adviser that i need life insurance. the value of the mortgage is £110k, and will be in my name only. my partner lives with me but isnt named on the mortgage. the financial adviser has quoted £80 a month which just seems really excessive, when you go on bank websites and they say cover from £6 per month... any ideas why it would be so much, and am i better off just going direct to the bank? im 33 and a none smoker - partner is 34 and a smoker
im in the process of buying a house and have been told by the mortgage adviser that i need life insurance. the value of the mortgage is £110k, and will be in my name only. my partner lives with me but isnt named on the mortgage. the financial adviser has quoted £80 a month which just seems really excessive, when you go on bank websites and they say cover from £6 per month... any ideas why it would be so much, and am i better off just going direct to the bank? im 33 and a none smoker - partner is 34 and a smoker
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Comments
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He gets a (massive) commission, and that has to be paid by you!!
Read up the MSE guide to see much cheaper ways to get it:
http://www.moneysavingexpert.com/insurance/level-term-insurance0 -
I receive commission from life insurance its defiantely not enough to make the premium go from £6 to £80!...more like £6 to £8!
£80 is a VERY high premium for someone in their 30s, but at the same time i would expect it to cost more than £6 per month. Do you have any health issues? Does the policy include Critical Illness cover?
Even with Critical Illness its still expensive but that would help towards explaining why its at £80.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Banks are the most expensive distribution channel. Premiums are typically 25-40% higher than an IFA would be able to get. Its what you get for using a bank. Tied sales reps are not that far behind banks on pricing either.
at 33 the premium on life assurance should be £10 or so on that amount. I suspect the premium is including other options.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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