Life Insurance quote checker question

OshayAway

L&G's critical illness plan has improved recently with 2 revisions that have increased the number of total conditions and upgraded some to ABI+.

To state that L&G "offer better a better critical illness product than all other companies" is simply not true. In fact, most of the points made in the section you copied and pasted are either wrong, misleading or both.

On that basis alone, I would be very nervous about using that broker, they simply don't seem to know what they're talking about.

My point about the cash back is that if it doesn't transpire for whatever reason (and I for one would like to see poor and misleading advice like this eradicated) you have ended up with an expensive policy. Of course you can cancel it, but you may find your alternative options much more expensive than getting your cover right first time round.

You may even find that if you do cancel, there is a clause in the agreement that makes you liable for the broker's commission claw back. Plenty of threads on here of experiences like that.

dunstonh

I don't think kickbacks are unethical however and neither does the site owner from what I've heard on breakfast TV.

What site owner?

The kickback is a refund of some of the commission. Your premiums are increased to pay the commission. So, you end up paying for it and possibly more if you find x number of years down the road that you cannot rebroker it to get cheaper/better (and with premiums expected to rise, that is likely).

Mr_Incredible

dunstonh wrote: »

What site owner?

The kickback is a refund of some of the commission. Your premiums are increased to pay the commission. So, you end up paying for it and possibly more if you find x number of years down the road that you cannot rebroker it to get cheaper/better (and with premiums expected to rise, that is likely).

little guy who picture appears all over the site, founder and editor would be technically more correct I guess, this dude :money:

I know what the kickback is and have considered it by subtracting it from the total premiums we pay over two years, which is effectively the handshake tie in period so that he can get his commission and share it with me, to get the net premiums we both pay for 200k life cover and also CI cover, works out £30 per month, so yes I've fully considered that.

dunstonh

little guy who picture appears all over the site, founder and editor would be technically more correct I guess, this dude

I very much doubt he endorses paying more in premiums to get less back. I've never seen him say any such thing.

I know what the kickback is and have considered it by subtracting it from the total premiums we pay over two years, which is effectively the handshake tie in period so that he can get his commission and share it with me, to get the net premiums we both pay for 200k life cover and also CI cover, works out £30 per month, so yes I've fully considered that.

What happens when premiums are higher in 2 years time and it is not cost effective for you change providers? You are stuck with a policy that you could have been paying less on had you not taken the commission kickback from the start.

OshayAway

Right, here we go...

Mr_Incredible wrote: »

I think that The Legal & General offer a better Critical illness product than all other [STRIKE]company[/STRIKE] companies though I do deal with Aviva and Friends life also, The Legal & General are market leaders in Critical illness Cover

No, they are not. At least 6 insurers cover more critical illness conditions, 2 cover the same number. At least 4 cover more ABI+ conditions.

Mr_Incredible wrote: »

and they have a five star rating for [STRIKE]there [/STRIKE] their claims pay ability which is very important in this day and age so I would recommend them.

There is no such thing as a five star rating for claims pay ability. The star rating refers to the Defaqto score which related to the policy features. L&G are 5 star, as are most major insurer's CI plans.

Mr_Incredible wrote: »

The premiums guaranteed for five years and then reviewed

This is shamefully poorly explained, either premiums are reviewable or guaranteed, these are reviewable

Mr_Incredible wrote: »

they would then look at mortality rates and other factors to see if they needed increasing to maintain the level of cover. in over 20 years I have never know premiums to need to be increased.

Reviewable premium plans haven't been around for 20 years for a start. Also, the facts are that L&G review can and do go up.

Mr_Incredible wrote: »

With the equality thing I expect that premiums will increase around 10 to 15% overall however because of competition in the market place for term assurance it may not be as much as this. male premiums could drop so it could be cheaper for you in two years time.

Everything I have read about the the EU gender directive is that premiums will increase across the board from 21st December. For Life cover, women will be hit harder than men with increases thought to be around 15%, but there will be a balancing that will effect premiums for men also. However, the tables turn for income protection and critical illness cover (which is more expensive for women at present) this will become more expensive for men and women but with the highest increase for men.

I-E takes effect on 1st Jan 2012 and is expected to increase protection premiums by circa 15% on its own. Although, it is likely that rather than 2 increases a few days apart, insurers will re-price both issues in one go.

Mr_Incredible

OshayAway wrote: »

L&G's critical illness plan has improved recently with 2 revisions that have increased the number of total conditions and upgraded some to ABI+.

To state that L&G "offer better a better critical illness product than all other companies" is simply not true. In fact, most of the points made in the section you copied and pasted are either wrong, misleading or both.

On that basis alone, I would be very nervous about using that broker, they simply don't seem to know what they're talking about.

My point about the cash back is that if it doesn't transpire for whatever reason (and I for one would like to see poor and misleading advice like this eradicated) you have ended up with an expensive policy. Of course you can cancel it, but you may find your alternative options much more expensive than getting your cover right first time round.

You may even find that if you do cancel, there is a clause in the agreement that makes you liable for the broker's commission claw back. Plenty of threads on here of experiences like that.

I realise that my question was broad and appreciate all the responses, ultimately its for me and my lady to consider our own personal circumstances. its interesting to note that you are now saying about L&G's improved CI cover.

If its not true that they offer better CI cover than other companies, can you tell me who is better and why then?

Mr_Incredible

dunstonh wrote: »

I very much doubt he endorses paying more in premiums to get less back. I've never seen him say any such thing.



What happens when premiums are higher in 2 years time and it is not cost effective for you change providers? You are stuck with a policy that you could have been paying less on had you not taken the commission kickback from the start.

great point, clearly made for laymen like me:money:

OshayAway

Mr_Incredible wrote: »

I realise that my question was broad and appreciate all the responses, ultimately its for me and my lady to consider our own personal circumstances. its interesting to note that you are now saying about L&G's improved CI cover.

If its not true that they offer better CI cover than other companies, can you tell me who is better and why then?

Sorry, but that would constitute advice... which is why you need to speak with an adviser! Not one that spouts a load of nonsense but one who can explain the ins and outs and can back up what they say with proof.

Mr_Incredible

OshayAway wrote: »

Right, here we go...
No, they are not. At least 6 insurers cover more critical illness conditions, 2 cover the same number. At least 4 cover more ABI+ conditions.
There is no such thing as a five star rating for claims pay ability. The star rating refers to the Defaqto score which related to the policy features. L&G are 5 star, as are most major insurer's CI plans.

This is shamefully poorly explained, either premiums are reviewable or guaranteed, these are reviewable Reviewable premium plans haven't been around for 20 years for a start. Also, the facts are that L&G review can and do go up.

Everything I have read about the the EU gender directive is that premiums will increase across the board from 21st December. For Life cover, women will be hit harder than men with increases thought to be around 15%, but there will be a balancing that will effect premiums for men also. However, the tables turn for income protection and critical illness cover (which is more expensive for women at present) this will become more expensive for men and women but with the highest increase for men.

I-E takes effect on 1st Jan 2012 and is expected to increase protection premiums by circa 15% on its own. Although, it is likely that rather than 2 increases a few days apart, insurers will re-price both issues in one go.

wow, thats great thanks

Mr_Incredible

Latest response from my guy after I questioned what his thoughts were on aviva and Freinds Life;

There is not much in the difference in cost between the companies for example the same policy with Aviva for you would cost £55.51 per month and with Friends life £57.59 per month.

For you wife her policy would cost £48.87 with Aviva and £52.78 with Friends life.

The main reason I would recommend Legal & General is. I think they have the best Critical Illness cover on the market they are 5 Star Defaqto rated and they paid out £147 million in CIC claims in 2011 with 93% of Critical illness cover claims paid. The are also the uk No1 protection provider.