Mortgage brokers and which policy to choose?!?!

nicimaxwell

So a year ago my oh and I got our first mortgage, we got our life insurance through our mortgage broker. It's with friends life ( 2 single policies, decreasing term with criticke illness cover) £85 a month!!

Now we are all settled and looking at saving some pennies I realised that this was not the best value life insurance- so i started getting some quotes.

They all say completely contradicting things about companies. I thought I'd made a decision to stay with friends life but through a broker have the premium decrease by £10 a month.

I have then spoken to another broker that tells me friends life only have a 50% payout rate and that legal and general would be better.

My question to you all is.... Which is the best insurance provider?!?

Both myself and partner are fit and healthy I'm 31, oh 29. He smokes an ecigerate I don't smoke. And there is no history of illness in our families. We have 2 dependants which was our reason for having 2 separate policies.

My head hurts trying to work out who to trust. I want the best insurance at the best price. Surely £85 is too much for 2 young fit adults?

InsideInsurance

Critical Illness in total has a payout rate of around 92% (see https://www.abi.org.uk/News/News-releases/2014/05/270-families-helped-every-day-by-Life-Critical-Illness-Income-Protection-insurance-payouts-2013) but of cause brokers may be screening some claims before they hit the insurers.

Someone else may well have a table that splits the rate by insurer but based on the size of Friends Life I'd be exceptionally surprised if they are 50% -v- an industry average of 92%

To some degree which are you wanting? The best or the cheapest? You rarely get the two in the same provider (for obvious reasons)

I'd suggest speaking to an IFA or an advisory broker for recommendations. As both of these are advisory in nature then they're putting a noose around their own neck if they cannot at a later date justify their recommendations if you find out they gave you duff advice. With a non-advised sale they just give you prices and cannot make recommendations

kingstreet

I did a CI Expert report for someone yesterday and it scores FL highest for current CI product quality.

It reads;-

FL 6523
LV 6347
Ageas 6045
L&G 5379.

I don't think FL can be touched on current CI plan quality.

It is more expensive as a consequence and that 50% is absolute rubbish. Its life, CI and income protection payouts are all over 90% IIRC.

Whether or not the other cover you have could be done better/cheaper is another matter and for that you will need to speak to a specialist protection broker or IFA.

kingstreet

FL Life, Critical Illness & Income Protection Claims Stats;-

http://www.friendslife.co.uk/doclib/Critical_Illness_Claim_Statistics1.pdf

99% life claims

91% critical illness claims

85% income protection claims

paid Jan to Dec 2013.

rs65

nicimaxwell wrote: »

I have then spoken to another broker that tells me friends life only have a 50% payout rate and that legal and general would be better.

Going by Kingstreet's post, I wouldn't trust the guy who said 50%.

kingstreet

We use Friends Life regularly.

They are not cheap, but the product quality is unmatched. Meanwhile, L&G cover is cheaper and not quite as good.

Ergo, new broker will "rebroke" to L&G, probably based on cost as it's cheaper and the client will lose the better quality cover. £75 a month is probably worth over £1,500 in commission, more if the advisor is L&G tied.

Meanwhile, the original broker will get a chunk of his commission clawed back. Hopefully, the client didn't sign a commission in lieu of fee deal.

The CI Expert report we have to do in every case where broking or rebroking critical illness cover to justify our recommendations.

magpiecottage

nicimaxwell wrote: »

criticke illness cover